Carrier liability is capped and often inadequate. Understand all-risk cover and when it pays off.
The liability gap
Air and sea carriers limit their liability by weight or package, not by cargo value. A lost container can be worth far more than the carrier will pay.
What all-risk cover does
- Covers loss or damage from external causes in transit.
- Typically based on cargo value + freight (Institute Cargo Clauses A).
- Gives you a real claim path if something goes wrong.
When to insure
- High-value or fragile cargo.
- Long multi-leg routes.
- Any shipment you cannot absorb losing.