Cargo Liability Insurance

What Does Cargo Liability Insurance Mean?

Cargo liability insurance is an insurance policy that protects a carrier involved in the transportation of goods, as specified in a contract of carriage, against liability for loss or damage to the goods belonging to their customers.

Insuranceopedia Explains Cargo Liability Insurance

Cargo liability insurance is a policy purchased by the owner or operator of a truck, train, or ship engaged in the business of transporting goods from one location to another under a contract of carriage. This policy protects the owner or operator from liability for any loss or damage to the goods during transportation. In other words, the insurer compensates the consignor or sender of the goods with a specified amount if the goods are lost or damaged in transit before reaching the agreed destination.