Info about Cargo Insurance

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Cargo Insurance

Cargo insurance covers shipments primarily by land or by air. Although the trucker, railroad, or airline may be a common carrier with extensive liability, the shipper may still be interested in cargo insurance because

 It is usually more convenient to collect from an insurer than a carrier.
 A common carrier is not responsible for perils such as acts of God, an act of war, exercise of public authority, or inherent defects in the cargo.
 The carrier may have issued a released bill of lading limiting the dollar amount of its liability.


Unless the insured makes only a few shipments each year, it is generally less expensive to buy cargo insurance than to increase the limits under the bill of lading.