Cargo insurance in logistics: why it is needed and how it works

Every day, any cargo travels thousands of kilometers, passing through warehouses, customs offices and transshipment. There are risks at each stage: damage, theft, damage to the cargo. That is why cargo insurance is an important tool for protecting businesses and shippers.

What is included in cargo insurance?

An insurance policy can cover different risks depending on the type of protection chosen. Main options:

Full insurance — protects cargo from any risks: damage, loss, theft, natural disasters and other force majeure circumstances.

Partial insurance — covers only certain risks (for example, damage from an accident or theft).

Carrier’s liability insurance — protects against losses if the responsibility for the cargo lies with the transport company.

Advantages of cargo insurance:

✅ Financial protection. If something happens to the cargo, insurance will help to compensate for the losses.

✅ Customer’s peace of mind. So you don’t have to worry about the risks associated with logistics.

✅ Flexibility of conditions. You can choose an individual insurance package, taking into account the route, type of cargo and potential risks.

Why take out insurance? Insurance is especially important if the cargo is transported over long distances , has a high cost , is exposed to high risks (for example, fragile or perishable goods) , crosses borders and goes through customs procedures. Without insurance, losses are borne by the sender or recipient, and legal proceedings with the carrier can take months. Therefore, insurance is not just an additional service, but a necessity for a stable business.

At Trading Logistics Solutions, we recommend taking out cargo insurance for each shipment in order to minimize risks and avoid financial losses. We help clients choose optimal insurance solutions and ensure maximum protection of their goods.