What is transport insurance?
Transport insurance covers financial loss if goods are damaged, lost, or stolen during transport. It can apply to both domestic and international shipments.
Unlike the carrier’s limited liability, which is often restricted by law or contract, transport insurance provides compensation based on the actual value of the goods.
What does transport insurance cover?
Transport insurance typically covers:
- Financial loss due to damage to goods
- Financial loss due to loss of goods
- Financial loss due to theft
- Incidents during loading, transport, or unloading
The exact coverage depends on the terms and type of the insurance policy.
Why is transport insurance needed?
A carrier’s liability is often limited by law or contract, meaning compensation may not reflect the true value of the goods.
With transport insurance, you get:
- Compensation based on the actual value of the goods
- Reduced financial risk
- Increased peace of mind for valuable or sensitive shipments
When should transport insurance be used?
Transport insurance is particularly relevant when:
- The goods have a high value
- The shipment is international
- The goods are bulky or sensitive
- The transport involves multiple handling points
It reduces the risk of having to bear the full financial loss if something goes wrong during transport.
