In general, logistic companies, shippers, carriers, and freight forwarders only carry limited liability under international law and maybe even less under national law, which is why we strongly suggest that you stay safe by getting cargo insurance. Specifically, when dealing with the transport of ready-made goods and so-called high-value products, the economic risk is so high that cargo insurance should be a natural preference.
What is cargo insurance?
It is the law for all carriers to provide a minimum amount of insurance. However, carrier liability provides very limited cargo insurance coverage and in an unforeseen event such as natural disasters or in-transit accidents, shippers can be prepared and request full freight insurance to protect their shipments for loss, theft or damage. For fully covered loss, we highly recommend comprehensive cargo insurance.
Cargo shipments are generally safe and secure, but as with unforeseen events, things can sometimes go wrong during the transport of goods. If you outsource the transportation of your products to a professional carrier or freight forwarder, you could be forgiven for believing that the carrier or forwarder is fully liable for any damage or loss. This is not the case.
Carriers and forwarders only have limited liability. If an unfortunate incident occurs, you may be faced with a long list of terms and conditions that are difficult for non-specialists to understand.
That’s why it helps to know the general principles, what the most common risks associated with goods transport are, and when it makes sense to arrange for cargo insurance.