Air Cargo Transportation Insurance refers to a type of cargo transportation insurance that takes the goods during air transportation as the subject matter insured, covering losses caused to the goods during air transit by natural disasters, accidents (such as aircraft crash, disappearance, fire, explosion, severe weather, cargo loss, damage, etc.) and external causes. In international trade, air cargo usually adopts clauses such as 'All Risks' or 'W.A.' (With Average). Use scenarios include: when high-value, time-sensitive goods (such as electronic products, precision instruments, pharmaceuticals, perishable goods) are shipped by air, the buyer, seller, or freight forwarder needs to insure to avoid transportation risks. Precautions: it is necessary to specify the insured amount (usually 110% of the invoice value), insurance coverage, deductible, claim settlement time limit, and applicable law; note the difference from marine insurance—air cargo insurance generally does not cover 'General Average' contribution, and because air transport is faster, the risk duration is shorter, and the premium rate is usually lower than that of marine insurance. In addition, it should be confirmed that the insurance liability starts and ends on a 'Warehouse to Warehouse' basis, but under air cargo it may be extended to 'Door to Door'.
📝 Examples
1. According to the contract, the seller shall insure Air Cargo Transportation Insurance All Risks at 110% of the invoice value, and the insurance policy must state that it is assignable and covers the entire transportation from the Shanghai warehouse to New York Airport. (Note: Specify the insured proportion, coverage, and commencement and termination of liability to protect the buyer's interests.)
2. Because this batch of precision instruments is high in value and susceptible to damage during air transport, we recommend that the buyer insure Air Cargo Transportation Insurance itself and require in the letter of credit that the insurance policy be submitted as one of the documents for negotiation. (Note: Demonstrate the practical operation under letter of credit settlement where the insurance policy serves as a key document.)
💡 Foreign Trade Tips
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