CARGO INSURANCE

Protection for goods while being transported by land, air, or sea

Cargo insurance provides coverage for goods, merchandise, and materials while they are being transported from one location to another. Whether shipped by truck, rail, air, or vessel, cargo is exposed to risks that are not covered by standard property or general liability policies. Cargo Insurance is designed to protect the financial value of the goods being transported against loss, damage, or theft while in transit.

This coverage is critical for businesses involved in shipping, logistics, distribution, manufacturing, or any operation where property moves between locations.

What Cargo Insurance Covers
Cargo insurance typically responds to loss or damage involving covered goods during transportation, including:

Physical Damage to Cargo
Protection for goods damaged due to accidents, handling incidents, or unexpected events during transit.

Theft or Missing Shipments
Coverage when cargo is stolen, lost, or fails to arrive at its intended destination.

Loading and Unloading Risks
Protection for damage that occurs while cargo is being loaded onto or unloaded from a vehicle, aircraft, or vessel.

Collision, Overturn, or Vehicle Accident
Coverage when cargo is damaged due to a transportation accident.

Weather-Related Damage
Protection for loss caused by storms, wind, or other covered weather events, depending on policy terms.

Non-Delivery or Misdelivery
Coverage for certain situations where goods are not delivered as intended.

Coverage may apply to owned goods, sold goods, or goods in your care, custody, or control, depending on policy structure.

What It Does Not Cover
Cargo policies are specialized and often exclude:

• Improper packaging

• Normal wear and tear

• Delay without physical damage

• Intentional acts or fraud

• Illegal or prohibited goods

• Mechanical breakdown of the vehicle

• Unscheduled or undeclared shipments

• Loss outside the coverage territory

Coverage depends heavily on how shipments, routes, and values are reported to the insurer.

Who Needs Cargo Insurance?
Cargo insurance is commonly required for businesses involved in transporting or shipping goods, including:

• Trucking companies

• Freight brokers and logistics firms

• Manufacturers

• Wholesalers and distributors

• Importers and exporters

• Retailers shipping inventory

• Construction and equipment suppliers

• Businesses moving high-value property

Many shipping contracts, lenders, and customers require proof of cargo coverage before goods can be transported.Accurate valuation, scheduling, and description of property are critical to proper coverage.

How Coverage Is Structured
Cargo insurance can be written in different forms depending on the operation, including:

• Motor Truck Cargo policies for trucking operations

• Shipper’s interest coverage for owners of goods

• Freight forwarder or logistics coverage

• Open cargo policies for ongoing shipments

• Per-load coverage for individual shipments

• Policies include:

• Per-load or per-occurrence limits

• Aggregate limits

• Deductibles

• Territory restrictions

• Commodity restrictions

• Reporting requirements

Accurate reporting of cargo type, value, and routes is essential to avoid denied claims.

Real-World Claim Examples

• A truck overturns and the shipment is destroyed

• High-value goods are stolen from a trailer

• Cargo is damaged during loading at a warehouse

• Freight is lost while being transported across state lines

• Imported goods are damaged during inland transport after arrival

Without proper cargo insurance, these losses often fall directly on the business responsible for the shipment.

Why Proper Placement Matters
Cargo coverage varies widely depending on:

• Type of commodities hauled

• Radius of operation

• Security requirements

• Policy exclusions

• Contractual liability assumptions

• Admitted vs. surplus lines placement

Incorrect limits, undeclared commodities, or improper policy structure can result in large uncovered losses.

Our Approach
At Cory Washington & Co., we structure Cargo Insurance based on the actual movement of goods — including what is being transported, how it moves, and who is responsible at each stage. We review contracts, shipping agreements, and operational details to make sure coverage aligns with real-world exposure.

Our goal is to protect your shipments, your contracts, and your financial stability every time cargo is on the move.

Disclaimer
All insurance descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or insurance advice. The information presented is general in nature and does not guarantee the availability, terms, conditions, or scope of any insurance coverage. Actual coverage is determined solely by the specific policy language issued by the insurer and remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds coverage, or alters any existing policy. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please consult directly with a licensed insurance professional at Cory Washington & Co. LLC or another qualified insurance professional, and always review your policy documents in full.