cargo insurance

Cargo insurance, also known as marine insurance, covers loss or damage to goods in transit. This can include shipments by sea, inland waterways, or even motor trucks.12

Ocean marine insurance specifically covers four main interests: the vessel itself (hull), the cargo, the freight revenue, and legal liability for negligence. Cargo insurance is often written on an open contract basis, automatically covering shipments from the shipper's warehouse to the buyer's warehouse. This coverage can be transferred with the bill of lading. Standard clauses in marine insurance include those for perils, running down (RDC), and free of particular average (FPA), which excludes small partial losses. Motor cargo insurance specifically addresses goods in transit by motor truck.231