CARGO Insurance covers the risks of a transport operation while the beneficiary is the merchandise owner. Basically, you cover the owner’s cargo during transport.
The CARGO policy can be closed either for one transport, in which case the risks coverage is bound by space and time, either on a certain time frame, usually 12 months, situation in which the policy covers the risks of all transports carried in this time frame, according to contract terms. CARGO insurance can be applied to all types of internal or external transportation, terrestrial, air, sea or combined transportation.
Depending on the covered risks, the insurance companies will offer 3 types of policies. To cover the theft risk, you pay an extra charge and usually, the insurance companies foresee a mandatory deductible.
The price of the CARGO insurance is set by the insurance company, based on the information about the transported cargo and transportation terms.