Our main priority is to transport our clients’ cargo safely, reliably and on time. However, as transport routes become more complex, cargo may travel by several modes before reaching its final destination, increasing exposure to potential loss or damage.
To fulfil our obligations to clients and reduce losses that could arise from cargo damage or loss, we maintain carrier liability insurance. However, liability insurance does not always cover 100% of the actual commercial loss.
For clients transporting high-value or business-critical cargo, we therefore offer an additional solution: cargo insurance under ICC A, B or C conditions.
What is cargo insurance?
Cargo insurance provides comprehensive and reliable protection against sudden and unexpected events that cause loss or damage to goods transported by road, sea, rail or air. Cargo-insurance conditions (ICC A, B or C) are selected according to the cargo characteristics, mode of transport and risks associated with the route.
This insurance can cover the full actual commercial value of the cargo as well as additional declared losses. This may include customs duties, transport costs, expert assessment, documentation preparation and other related charges or unforeseen expenses arising from partial or total loss of, or damage to, the cargo.
Process
1. Assessment of cargo value and risk
We collect information about cargo value, type, route, modes of transport and potential transport risks.
2. Selection of insurance conditions
Depending on the cargo and risk level, suitable ICC A, B or C conditions and an appropriate insured value are selected.
3. Submission of data and policy issuance
The required cargo and transport information is submitted to the insurer and, once the conditions are approved, the insurance document is issued.
4. Transport
Insurance cover applies in accordance with the agreed policy conditions during the specified cargo-transport period.
5. Claims administration
If loss or damage occurs, evidence and required documents are collected, the insurer is notified and the claims-handling process is coordinated.
Assessment of cargo value and risk
Submission of data and policy issuance
Claims administration
Selection of insurance conditions
Cargo transport
- 1
Assessment of cargo value and risk
- 2
Selection of insurance conditions
- 3
Submission of data and policy issuance
- 4
Cargo transport
- 5
Claims administration
Advantages
The main benefit of cargo insurance is peace of mind during transport, together with several practical advantages:
Versatile cover
Insurance can be arranged for all major modes of transport, whether goods move by road, rail, vessel or aircraft.
Actual compensation
Compensation is based on the insured commercial value of the cargo, subject to the policy terms, rather than being limited solely by statutory carrier-liability limits based on weight.
Speed and simplicity
By arranging insurance through us as your freight forwarder, you save time searching for a separate insurer – we help select and activate a suitable solution for the shipment.
Who needs cargo insurance?
A simple rule is that if cargo loss or damage would materially affect your business, additional cargo insurance should be treated as a key risk-management measure rather than an optional extra.
This solution is particularly valuable for companies importing goods from abroad, especially where cargo values are high or large volumes are transported regularly.
Many businesses assume that cargo moving with a major shipping line or a well-known carrier is automatically fully protected. In reality, carrier liability and cargo insurance are different forms of protection and carrier liability may be limited.
How much does cargo insurance cost?
There is no single fixed cargo-insurance premium. The price is calculated according to the type of insurance cover, selected route, cargo characteristics and the commercial value of the shipment:
| Insurance type | Indicative price (as a percentage of cargo value)* |
|---|---|
| ICC A (all risks) | ~0.05% – 0.2% |
| ICC B (partial) | ~0.03% – 0.1% |
| ICC C (basic) | ~0.01% – 0.05% |
*These are preliminary figures. The exact percentage depends on the selected insurer, route, cargo category and other risk factors.
Comparison of ICC insurance conditions
Insurance compensates losses if the insured cargo is lost or damaged due to the events listed below, unless the policy states otherwise:
| Specific circumstances of cargo loss or damage | ICC A conditions | ICC B conditions | ICC C conditions |
|---|---|---|---|
| Grounding, sinking or capsizing | ✔ | ✔ | ✔ |
| Overturning or derailment of land transport | ✔ | ✔ | ✔ |
| Collision of vessels or other means of transport | ✔ | ✔ | ✔ |
| Collision with anything other than a means of transport (excluding water) | ✔ | ✔ | ✔ |
| Forced discharge at a port of distress | ✔ | ✔ | ✔ |
| Fire or explosion | ✔ | ✔ | ✔ |
| Earthquake, volcanic eruption or lightning | ✔ | ✔ | ✖ |
| Malicious acts by third parties | ✔ | * (available as an additional cover) | * (available as an additional cover) |
| Theft or pilferage | ✔ | ✖ | ✖ |
| General Average | ✔ | ✔ | ✔ |
| Jettison | ✔ | ✔ | ✔ |
| Washing overboard | ✔ | ✔ | ✖ |
| War, riot and strike risks | * (available as an additional cover) | * (available as an additional cover) | * (available as an additional cover) |
| Piratavimas | ✔ | ✖ | ✖ |
| Entry of water into a vessel, storage place or container | ✔ | ✔ | ✖ |
| Loss during loading or unloading (in the event of total loss) | ** (also covers partial damage) | ✔ | ✖ |
| All other risks of physical loss of or damage to cargo | ✔ | ✖ | ✖ |
*May be agreed as additional cover; **Also applies in the event of partial loss or damage.
FAQ
CMR insurance compensates losses only when the carrier’s liability can be established. Even where liability is proven, compensation under international conventions is strictly limited by cargo weight rather than the actual value of the goods. For valuable, lightweight cargo such as electronics or textiles, standard CMR compensation may cover only a small share of the actual loss.
ICC (Institute Cargo Clauses) are an international standard for cargo insurance. ICC A provides the broadest “all risks” cover and protects against almost all cases of physical loss, theft or damage. ICC B covers major transport events such as accidents, natural disasters, fire and water ingress. ICC C provides the narrowest cover and applies only to major transport accidents, such as a vessel sinking or a truck overturning. In most cases, the broadest ICC A option is recommended.
General Average is a principle of maritime law under which part of the cargo may be deliberately sacrificed to save a vessel from a common danger, for example by jettisoning cargo. By law, the resulting loss is shared proportionally by all cargo interests on board, including owners whose goods remain completely undamaged. Cargo insurance under ICC conditions can cover your company’s General Average contribution and protect you from unexpected financial exposure.
