Definition
Insurance covering loss of or damage to goods while in transit by sea, air, or land.
Marine cargo insurance protects the goods owner against physical loss or damage during transport, despite the name covering air and inland legs too. Cover levels follow the Institute Cargo Clauses — A (all risks), B, or C (named perils) — with A the broadest.
It is distinct from the carrier’s limited liability, which rarely makes the cargo owner whole after a loss. Whose responsibility it is to insure depends on the Incoterm: CIF and CIP, for instance, oblige the seller to arrange cover for the buyer.
Related terms
General Average
A maritime principle where all cargo owners share the loss when some cargo is sacrificed to save the voyage.
CIF (Cost, Insurance and Freight)
The seller pays freight and minimum marine insurance to the destination port; risk still passes on loading.
CIP (Carriage and Insurance Paid To)
Like CPT, but the seller also buys all-risks insurance to the named destination for the buyer.
Force Majeure
A contract clause excusing a party from performance when extraordinary events beyond its control intervene.
Built for freight forwarders
Turn these terms into a working pricing engine.
Freightools structures your tariffs, quotes on margin in seconds, and gives your customers self-service quoting. Book a demo to see it on your lanes.