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Insurance
Insurance
A carrier's liability is not the same thing as the value of your cargo. The limit is set by the transport document and by international convention.
How far carrier liability goes
- Liability is capped. A carrier is not always liable for the invoice value of the cargo. In air, sea and road transport the upper limit is set by separate conventions, and that limit is calculated on weight.
- Calculated on weight. With light but valuable cargo the cap is reached quickly. The same compensation per kilo may be enough for a tonne of granulate and far too little for a carton of electronics.
- Insurance is a separate contract. A contract of carriage and an insurance contract are not the same thing. Freight charges do not include insurance; it has to be arranged separately.
Who carries the obligation
| EXW · FCA · CPT · FAS · FOB · CFR | No insurance obligation; either party may cover itself |
|---|---|
| CIF | Seller arranges insurance · minimum cover |
| CIP | Seller arranges insurance · wider cover |
| DAP · DPU · DDP | While risk stays with the seller, cover is the seller's concern |
What we do at the quotation stage
Once we know the nature, the value and the delivery term of your cargo, we tell you with the quote how far carrier liability goes on that particular shipment and whether separate insurance is needed. Because the choice of Incoterm also decides the insurance obligation, we look at the two together.
An approximate cargo value is enough when you request a quote. We ask early because the value affects both the insurance decision and the customs value.
More on this in the Knowledge Base
Let us talk about your cargo
A sentence or two is enough; we start work on your request the same day.
By phone: +90 212 551 15 34