Logistics & Cargo Insurance

What Is Logistics & Cargo Insurance?

There are many kinds of cargo and logistics insurance. Generally, cargo insurance focuses on coverage for the value of goods during transport. Logistics insurance and cargo insurance are often used synonymously. Some policies offer international coverage, while others focus on domestic transport of goods.

Cargo insurance focuses on coverage for the value of goods during transport.

Motor truck cargo insurance offers coverage of goods that will be transported via motor truck. A freight insurance policy may focus more on transportation of freight via multiple modes of transport. International freight coverage will offer insurance for goods across international borders.

Specialized categories of cargo and logistics insurance include freight broker insurance, (coverage for freight brokers) or contingent cargo insurance (which helps to cover cargo if a primary cargo policy denies a claim).

Cargo Liability Insurance

It may be difficult to find both cargo and liability insurance as a single policy, as cargo and transport typically entails different risks than a professional liability policy. Your Guardify agent may have some suggestions regarding how to combine these risks for your business needs.

What Kind of Logistics Insurance Do I Need?

Choosing the right logistics or cargo insurance starts with considering your specific risks. It may be helpful to answer the following questions to help you narrow down the conditions of your policy:

What kind of cargo is being stored or transported?
What is the value of the cargo?
Does the nature of the product or cargo pose unique concerns (such as toxicity, perishability, fragility, security or time-sensitive transport requirements)?
What modes of transportation are needed to transport your products?
Is storage required? If so, at what point(s) is storage required between origin and final destination?
Are transportation modes third-party, or are they owned by the company (example, a company vehicle versus a contracted trucking service)?
Do I need domestic coverage, or additional international coverage or freight insurance coverage?
How much supply chain interruption or inventory loss can I afford?

Your cargo insurance requirements depend on your company's unique cargo-related risks.

Types of Logistics & Cargo Insurance Coverage

Once you have identified your unique risks, you can consider which type of commercial cargo insurance coverage will be the best fit for your needs. Learn more about different types of cargo insurance and common cargo and logistics insurance questions below.

Cargo Insurance vs. Freight Insurance

Freight insurance, also known as freight forwarders liability insurance, is a form of transport and logistics insurance designed to protect the party responsible for transportation of goods. Freight insurance coverage is designed to protect a shipping party from losses or claims that arise during transport.

For example, a wholesaler may acquire insurance for cargo to insure the value of the cargo itself in the event of losses – but the shipper who receives cargo from the wholesaler would acquire commercial freight insurance, in order to obtain coverage themselves from losses or claims that may result due to shipping and transport under the shipper's care.

Sometimes, this type of insurance is called freight broker cargo insurance, freight forwarder cargo insurance, ocean freight insurance or marine freight insurance. Marine transportation is often covered under an ocean marine policy.

Who is Cargo & Logistics Insurance For?

Cargo & logistics insurance can be for manufacturers, distributors, wholesalers, importers, exporters, or any person or business that needs to insure a high-value or quantity of goods for transport purposes.

Cargo Insurance vs. Motor Truck Cargo Insurance

Motor truck cargo coverage offers protection specifically designed for transportation cargo via truck or van. Your Guardify agent can discuss any potential package policy options based on your priorities, to make sure that you get the right coverage for every step of the supply chain.

Cargo Insurance vs. Transportation Business Insurance

Transportation insurance typically covers traveler-related risks, including, but not limited to, delivery services, limousine, charter transport, and public transport. For more information about this type of insurance, please visit our Transportation Insurance page.