CARGO INSURANCE
It’s Worth Every Penny
Goods in motion are goods at risk. No matter how reliable your carriers, freight moves through multiple hands across complex routes — and plenty of things can go wrong along the way. Fire, theft, weather events, port accidents, and improper handling are just a few of the hazards that can affect your shipment before it reaches its destination. The question isn’t really whether something could happen to your cargo. It’s whether you’re protected if it does.
Ask Courtney Agencies To Arrange Your Insurance
Whether you’re shipping a single high-value container or managing ongoing international freight, we can help clients navigate cargo insurance the same way we handle everything else in Customs and Freight — by understanding your business first.
Carrier Liability Limits Leave Gaps
Standard carrier liability is far more limited than most shippers realize. Under U.S. maritime law (COGSA), ocean carriers are liable for only $500 USD per package — regardless of the actual value of its contents.
For air freight, the Montreal Convention sets a ceiling of 26 SDR per kilogram (roughly USD $34), a limit updated as of December 2024. For most commercial shipments, these caps leave significant value unprotected.
Proving Liability Is Harder Than It Sounds
Many of the most common causes of loss — acts of God, fire, inadequate packing, port strikes — fall outside a carrier’s legal liability entirely. And when cargo passes through multiple parties during transit and storage, pinpointing exactly where damage occurred can be nearly impossible. A cargo insurance policy removes the burden of proof: if your goods are lost or damaged, you’re covered — full stop.
Don’t Get Caught by General Average
General average is a maritime principle that can blindside even experienced shippers. If a vessel encounters an emergency and its operator declares general average, every shipper with cargo on board may be required to contribute to the costs of the incident — regardless of whether their own goods were affected.
Without insurance, your cargo could be held until a security deposit is paid, which can run into tens of thousands of dollars and take weeks to resolve. A proper cargo insurance policy protects you here too.
Talk to us before your next shipment moves.
