How Does Cargo Insurance Work for International Shipments?
Introduction Cargo insurance for international shipments protects goods against covered loss or damage while they move between countries. It can apply to shipments transported by sea, air, road, rail, or a combination of modes, depending on the policy. For importers, exporters, manufacturers, e-commerce businesses, and distributors, international transit can involve multiple handling points and different risks. Cargo insurance helps transfer eligible financial risks from the business to the insurer according to the terms, limits, exclusions, and deductibles stated in the cargo insurance policy . What Is Cargo Insurance for International Shipments? Cargo insurance is coverage designed to protect the value of goods while they are being transported internationally. Depending on the policy, protection may apply from the point where the shipment begins its insured transit until it reaches the specified destination. A policy may cover risks such as accidental physical damage, theft, fi...