Cargo Transportation Insurance

Cargo Transportation Insurance refers to insurance in international trade cargo transportation where the insurer (insurance company) and the insured (exporter, importer, or carrier) enter into an insurance contract, under which the insurer bears liability for compensation for loss of or damage to the insured cargo during transportation caused by natural disasters, accidents, etc. Use scenarios include sea, air, land, and multimodal transport. Common types include Free from Particular Average (FPA), With Particular Average (WPA), All Risks, and additional risks. Notes: It is necessary to specify the insured risks, insured amount (usually 110% of the invoice value), commencement and termination of insurance liability (warehouse-to-warehouse clause), deductible, and claim time limit; it must also align with insurance obligations under trade terms (such as CIF, CIP) to avoid underinsurance or duplicate insurance. Unlike carrier's liability insurance, which covers only the carrier's own liability for negligence, cargo transportation insurance covers loss of the goods themselves and allows direct claims against the insurer, providing more comprehensive protection.