Cargo Insurance Made Simple — Why It Matters for Your Business

If you import or export goods, shipping is a big part of your costs. It might be tempting to skip cargo insurance to save money — but one accident, theft, or delay could cost you far more than the insurance ever would.

What is Cargo Insurance?

Cargo insurance protects your goods while they’re being transported by sea, air, or land. If your shipment is lost, damaged, or stolen, insurance helps you recover your losses.

Why Carrier Cover Isn’t Enough?

Many people think the carrier’s liability cover is the same as cargo insurance — it’s not.

  • Carrier cover is very limited (sometimes only $2 per kg)
  • Many situations aren’t covered at all

If your goods are worth more than this limit, you need your own insurance.

When Should You Get It?

You need cargo insurance when you are responsible for the goods during shipping (as per your agreed Incoterms).

Example:
You’re shipping products overseas, and your container is lost at sea before your buyer pays you. Without cargo insurance, you might recover almost nothing.

Types of Cargo Insurance

  1. Single Shipment Cover — For one shipment only. Good for occasional shipping.
  2. Open Cover — Covers all shipments for a set period (usually a year). Best for regular shippers.

Levels of Cover

  • All-Risk Cover — Protects against most causes of loss or damage.
  • Named Perils Cover — Protects only against specific risks listed in the policy (like theft, bad weather, or sinking).

Why It’s Worth It?

Cargo insurance:

  • Saves you from big financial losses
  • Protects against accidents, theft, and delays

At Shippers Bay, we make importing and exporting easier and safer. We can help you choose the right cargo insurance so you’re always protected.

Contact us today — protect your goods before they leave port or runway.