Freight insurance is a type of insurance policy that protects goods in transit, carriers, and cargo owners from financial losses incurred as a result of cargo damage, loss, or theft while in transit.
When shipping goods through carriers or freight forwarders, freight insurance protects your financial interests. It offers insurance solutions, financial protection, and risk management for losses caused by unforeseen events such as theft, damage to goods, or loss during transit. It also ensures that you are not held liable for any damages that occur during shipping, lowering the risk of financial losses.
Most cargo shipments, including items transported by land, sea, or air, can be insured against loss or damage. This includes bulk freight, containerized cargo, and other types of cargo transported via various modes of transport.
A freight cover’s price is determined by several factors, including the value of the goods being shipped, the type of freight, the mode of transportation, the destination, and the level of coverage required. Generally, the higher the value of the goods being shipped, the higher the freight insurance premium.
Freight insurance covers financial losses incurred during transportation due to cargo damage, loss, or theft. This includes losses from natural disasters, accidents, theft, and other unforeseeable events. The insurance can also cover damage to packaging and containers used to transport goods.
In the global insurance market, there are several major cargo underwriters. Lloyd's of London, AIG, Chubb, Zurich Insurance Group, and Allianz Global Corporate & Specialty are among the top freight underwriters. These companies provide cargo and logistics insurance products that protect shippers and carriers from financial losses resulting from damaged, lost, or stolen cargo while in transit. Because each insurance company may provide different types of coverage, policy terms, and pricing structures, it's critical to compare options and choose the one that best meets your needs.