Published on September 1, 2025 4 min read

What Is Cargo Insurance and Why Your Business Needs It

Transporting goods comes with various risks, including damage, theft, and loss during transit.
Cargo insurance provides financial protection against these uncertainties, ensuring businesses do not suffer significant financial losses due to unforeseen events.
Whether shipping domestically or internationally, having the right cargo insurance can safeguard your assets and operations.

This guide explains what cargo insurance is, the different types available, and why it is essential for businesses involved in logistics and trade.
Understanding how cargo insurance works can help you choose the best coverage to protect your shipments and ensure smooth business operations.



What Is Cargo Insurance?

Cargo insurance is a policy that covers the loss or damage of goods while they are being transported.
It applies to shipments moved by land, sea, or air, protecting businesses from financial losses caused by accidents, natural disasters, theft, or mishandling.

Types of Cargo Insurance

Land Cargo Insurance

Marine Cargo Insurance

All-Risk Cargo Insurance

Named Perils Cargo Insurance

Why Your Business Needs Cargo Insurance

Choosing the Right Cargo Insurance

When selecting a cargo insurance policy, consider the following factors: