In 2026, cargo insurance is the only legal mechanism that provides a primary, first-party indemnity for the full commercial invoice value of goods in transit, bypassing the restrictive weight-based liability caps of the CMR, Hague-Visby, and Montreal Conventions. While carriers operate under limited liability, often paying as little as $2 per kilogram for ocean freight, a dedicated “All-Risks” policy under Institute Cargo Clauses (A) ensures the cargo owner is made whole regardless of carrier negligence. Often 70% to 95% of cargo value is uncovered by carrier liability in real scenarios.

The Liability Trap: Why “Carrier Coverage” is a Myth

If you are an exporter or a distributor, you’ve likely heard a forwarder tell you the shipment is “covered.” It’s a dangerous half-truth. Standard carrier liability isn’t insurance. It’s a defensive legal barrier designed to protect the trucker or the vessel owner, not your balance sheet.

Your precious cargo can be:

– electronics

– pharmaceuticals or cosmetics

– machinery

– fast moving consumer goods

– foodstuff

– or other valuable part of your supply chain.

When a container with your cargo is crossing the ocean and gets damaged, delayed or stolen in transit to your warehouse – that 200,000 EUR worth of value could be gone in days. The carrier might use an exemption in any of the Hague-Visby Rules / CMR Convention / Montreal Convention. They might only have to prove that they exercised their duty of due diligence and their liability could very well become zero.

Sometimes you might have a solid argument, but fighting a carrier for a payout is not a light job. It could very well involve months of aggressive “back-and-forth”, legal posturing and evidence gathering. 

2026 Risk Realities for Shippers and Traders

The logistical landscape in 2026 has moved beyond simple “theft or damage” scenarios. The threats are systemic, and they are getting more expensive.

• General Average Returns: If a mega-vessel grounds itself to avoid a collision in the English Channel, the Master will declare General Average. Every cargo owner on that ship—including you—is legally required to pay a proportional share of the salvage costs before your goods are released. Without insurance, your cargo stays impounded until you post a massive cash bond.
• The “Nuclear Verdict” Echo: In road freight, liability awards are skyrocketing. While this affects truckers, the resulting litigation often freezes supply chains. If your goods are on a seized trailer during a two-year court battle, your capital is dead.
• Climate Volatility: We are seeing a 15% increase in “Act of God” defenses being successfully used by carriers to dodge claims related to extreme North Atlantic swells or port flooding.

Risk Type	Carrier Liability (Limited)	All-Risks Cargo Insurance
Theft/Pilferage	Must prove carrier negligence (Difficult)	Covered automatically
General Average	You pay the salvage bond in cash	Insurer posts the bond immediately
Weight vs. Value	Payout capped by kg (e.g., 2 SDR/kg)	Payout based on commercial invoice + 10%
Act of God	Carrier is exempt from paying	Full indemnity for the owner

The Strategic Perspective: Importers vs. Exporters

Whether you need insurance often depends on your Incoterms, but relying on your counterparty is a high-stakes gamble.

For the Exporter (Shipper):

If you’re selling on CIF terms, you’re obligated to provide insurance. But even on “Ex Works” or FCA, if the goods are damaged and the buyer hasn’t paid yet, they will walk away from the deal. Now you have damaged inventory sitting in a foreign port and zero revenue. Insurance preserves your customer relationships by removing the friction of a loss.

For the Consignee (Importer/Distributor):

You have downstream commitments. If your 40ft high-cube of seasonal electronics disappears in a drayage hijacking in Rotterdam, you don’t just lose the product; you lose your shelf space and your reputation with retailers. Cargo insurance doesn’t just pay for the boxes; it funds the emergency air-freight replacement to keep your business alive. That is, if you choose the right provider.

Frequently Asked Questions

Does my forwarder’s FFL insurance cover my goods?

No. Freight Forwarder Liability (FFL) insurance protects the forwarder from their own errors. It does not protect your cargo value. If the forwarder didn’t make a clerical error but the ship sank, their FFL policy won’t pay you a dime.

Is “All-Risks” coverage actually “all” risks?

Almost. ICC(A) is the broadest cover, but it still excludes “Inherent Vice”—meaning if your fruit rotted because it was overripe when loaded, you aren’t covered. It covers fortuitous external events, not inevitable internal decay.

How much does cargo insurance cost in 2026?

Premiums vary, but compared to the risk of a total loss, they are marginal. A single rejected claim on a mid-sized shipment can wipe out the profit margins of your next 75 orders.

The Bottom Line

In 2026, shipping without cargo insurance isn’t “saving money”. It’s a massive, unhedged bet against a global logistics network that is increasingly volatile. You don’t buy insurance for the 99 shipments that go right; you buy it so the one that goes wrong doesn’t take your company’s yearly profits down with it.

Transporting project cargoes is a multifaceted process, often desired by logistics managers and forwarders due to its high-reward nature. As any high-reward job, transportation of project cargoes holds an inherent high-risk element and many hidden hazards.

In this article we will cover in short a few of those, hopefully supporting project managers, heavy-lift logistics managers and freight forwarders and help minimise the possibility of claims. In order to be able to understand the process of handling a project cargo, we must first seek to understand what is commonly understood when using the term. Although in practice “project cargo” sometimes refers to a single-purpose equipment that is being transported for a certain site, originally, most commonly and for the purposes of this article the term “project cargo” refers to large – in dimensions and/or in weight – equipment that is shipped either together or in stages from production site or a hub to its final destination. Such are large machinery sections, transformers, pipes, wind turbine rotor blades and towers and so on.

 

Budgeting and Hidden Costs

 

One of the most burdensome – and sometimes tedious – parts of dealing with project cargoes is the budgeting. When arranging a project cargo transportation from its point of origin to its final destination, a freight forwarder or a logistics manager has to plan for a vast range of services, sub-contractors and expenses. The tricky part is that the budgeting is being done before the cargo is shipped, sometimes even before it is manufactured.

That being said, it is clear that the process leaves a lot of chances for things to go wrong: subcontractors increase their fees or do not do the job as needed, unexpected delays occur hence storage needs to be arranged, regulatory bodies change their requirements and so on.

A recent example in our practice is a rather simple job of shipping oversized transformer parts and other miscellaneous equipment from three countries to a Bulgarian port, from where they were to be shipped in 2×40’ HCs and 1×40’ FR OWOH containers to China. The Bulgarian forwarder obtained quotations from customs brokers, lashing surveyors, container line and the terminal itself for handling charges, offering a sum fee to their principal. The latter ended up falling significantly short, after a portion of the cargo arrived much earlier than planned, which required extra storage fees. The lashing surveyor did not do a sufficiently good job on the securing of the cargo, which made it necessary for another company to be appointed. At the end, a simple job ended up being a time-consuming effort that resulted in literal financial loss for the forwarder.

In our practice, we would recommend that when dealing with project cargoes, initial estimates need to have a 15% safety net for unexpected charges, which in most cases ends up being used.

 

Road Transport and National Regulations

 

Another difficult aspect of taking up a project cargo transport, especially if it is a dedicated road carry, is that the cargo is going to be passing through several countries, which usually mean dealing with non-standardised regulations for dimensions, especially bridge heights. Unfortunately (for forwarders and hauliers at least), bridge heights in different parts of the world are not uniformly standardised to have the same clearance.

If a forwarder is planning a transport of out-of-gauge (OOG) project cargoes or a haulier has taken up the same, both need to be wary of the different national regulations of the countries through where the route will pass. For example, countries in the EU should ensure that vertical clearance on major roads and highways is at least 5 meters, the UK states it should be 5.03 m, whereas in the US the regulations state that should be at least 4.90 m. A haulier or a project manager should be well aware of the different regulations for OOG in order to plan the route appropriately, engage an experienced subcontractor to carry out a road survey, obtain permits and if unavoidable, plan for expenses and personnel for disassembly where at all possible.

In order to ensure that the project goes through smoothly, engaging a reputable road surveyor is recommended. If the initial planning has taken place well in advance of the actual transport, a second road survey is also preferable – we have come across cases where changes in road structure have led to significant increase in costs simply because the initial road survey was carried out months in advance of the actual transport.

 

Insurance Risks and Unreliable Subcontractors

 

On the topic of insurance, it is also important to note that proper unification of insurance coverage between forwarders and actual performing subcontractors (carriers / hauliers) is crucial for avoiding potential large payments in case of damages. It is not uncommon for the forwarders – which are well aware of the whole project, specifications of the units, routes, etc. – to take insurance against specific risks. Same needs to be well coordinated with the actual carriers – we have had cases of negligence and even outright fraud on the part of hauliers, who confirm to the project manager that certain risks are covered in their haulier insurance, only to end up finding out that is not the case and significantly increase costs, as well as burden all parties with legal battles claiming funds.

Proper description of the units, their value and IMDG codes are also vital in order to ensure smooth handling and staying on budget. A good project manager knows that appropriate description of the cargo and its value are essential for correct insurance coverage. On the other hand, properly obtaining information about IMDG status / class and passing it to all parties as early as the pre-planning stage will warrant appropriate planning. For example, certain IMDG classes can only be stored in specifically certified storage areas (subject to local jurisdictions). Dangerous cargoes are also usually subject to increased handling, transportation and storage charges. In certain cases where omission of reporting IMDG status is ‘caught’ at customs, it is even possible that import is rejected altogether.

 

Insurance Cases

 

An example from practice – a freight forwarder is tasked with transporting steel pipes on barges from Hungary to Bulgaria. The forwarder takes up insurance for the river transport, providing a BL to the insurance broker. The cover is picked up by an UK insurer with no issues. When transporting the pipes, due to limited space on board the barge, the pipes are telescoped. Upon receipt and storage at the disport, the insurer claims double premium needs to be paid, as cover was for only half the number of pipes.

 

In Conclusion

 

As outlined above, handling, transporting or insuring project cargoes is a complex process that presents a number of challenges and dangers for all parties involved. In order to guarantee smooth execution, it is important to obtain as much information about the cargo as possible, ensure that all subcontractors are well aware of the specifications and dimensions, appropriate local permissions are obtained and constant communication is maintained.

And above else, do not forget that something will always go wrong – so better be prepared for it!

In the intricate world of international road transport, the CMR Convention serves as the bedrock of liability. Yet, even with clear rules, complex claims can emerge from the shadows – especially when damages are anything but obvious. This is a story of how a seemingly “routine” chemical transport spiraled into a denial, and how Cargofort’s forensic logistics expertise and legal acumen saved our client over EUR 5,000 and secured rightful compensation.

The Deceptive Leak: A Claim Denied

Our client, a freight forwarder, orchestrated the transport of liquid chemicals from Greece to Bulgaria. What appeared to be a straightforward journey took an unexpected turn. The shipment navigated through a typical chain – from our client to a second freight forwarder, and finally to the actual carrier. Upon delivery, the consignee signed off, accepting the goods without a single remark on the CMR. All seemed well.

However, the very next day, a significant leakage was discovered, leading to a substantial claim exceeding EUR 5,000. With multiple parties and a Cargo insurance policy in play, the situation was ripe for complications. When our client sought compensation from the Cargo insurer – typically the primary avenue for such claims – they were met with a swift and stark denial. The insurer’s reasoning? No remarks on the CMR at the time of delivery, citing Article 30 of the CMR Convention, which implies acceptance of goods in good condition if no immediate observations are made.

Cargofort’s Forensic Fight: Uncovering the Truth

This is where Cargofort stepped in. We knew that while consignees are expected to inspect goods, hidden damages are a very real, and often deliberately obscured, challenge. The insurer’s quick denial, based purely on a signature, overlooked crucial nuances. Our mission was clear: challenge this assumption and prove the damage was truly “hidden.”

We immediately and proactively engaged all parties in the transport chain – the second freight forwarder, the carrier, and the Cargo insurer – ensuring everyone was fully informed. Then, our meticulous investigation began, transforming us into logistics detectives.

Our deep dive into the specifics of the carriage and delivery unearthed critical findings:

• Deliberate Concealment: The damaged area had been expertly masked with foil, stickers, and tape, making it nearly impossible to detect during a standard visual inspection. This wasn’t accidental; it was a calculated attempt to hide the issue.
• Poor Delivery Conditions: The unloading itself took place under poor lighting conditions, further diminishing any chance of spotting the cleverly disguised leakage at the moment of delivery.

Armed with this irrefutable evidence, Cargofort strategically applied the full weight of CMR Article 30. We argued that the damage was unequivocally “hidden,” and therefore, the 7-day window for reporting such damages, as stipulated by the Convention, was fully applicable. The delay in reporting was not only reasonable but entirely justified by the circumstances of concealed damage and challenging delivery conditions.

Victory: Over EUR 5,000 Secured and Trust Restored

Our thorough, evidence-based approach and relentless negotiation paid off. The Cargo insurer reversed their initial denial, accepting the claim in full. This meant our client, the Cargo owner, received complete reimbursement for their losses – a successful compensation exceeding EUR 5,000.

At Cargofort, we don’t just process claims; we dissect them. We blend profound legal understanding of conventions like the CMR with exhaustive logistical investigation and strategic communication. This case is a powerful demonstration of how our commitment to uncovering the full truth, challenging erroneous interpretations, and ensuring transparency across all stakeholders directly translates into significant financial victories for our clients, protecting their bottom line and preserving their invaluable business relationships. When the stakes are high, and the damages are hidden, Cargofort delivers the clarity and compensation you deserve.

Failure to follow transport instructions correctly can have serious legal, financial, and operational consequences. This case study outlines a real incident where improper handling of a minor procedural issue led to a rejected shipment, a held-up driver, and the eventual destruction of goods. Learn why following the instructions of the entitled party isn’t just a formality—it’s a necessity.

 

The Situation

Our client, a freight forwarding company, managed a shipment of chemical compounds for the cooking industry. The goods were to be transported from Bulgaria to Germany under strict conditions: they were sealed with both a commercial and a customs seal. Maintaining these seals intact was a non-negotiable condition for the buyer to accept delivery. Any deviation would trigger a full rejection.

The Problem

At the Romanian border, customs officials removed the customs seal for inspection. The driver replaced the seal but did not:

• Document the replacement in the CMR Consignment note
• Notify the freight forwarder

As per the agreed transport protocol, this replacement should have been reported immediately to allow the consignee to prepare for the discrepancy. But because the change wasn’t recorded or communicated, the consignee rejected the goods upon delivery due to the different customs seal.

The Fallout

We were brought in after the rejection. We contacted the client’s contractual partner to request that the consignee reconsider, since the commercial seal was intact and the product was unharmed. The consignee allowed an inspection on-site. The surveyor confirmed the goods were untouched and usable.

Still, the consignee maintained the rejection. With no official instructions on what to do next and a driver stuck on-site for four days in the middle of summer, the carrier had no choice but to return the goods to Bulgaria.

Legal Background: CMR Convention Articles 14 & 15

• Article 14(1): If the contract can no longer be executed per the CMR note, the carrier must request instructions from the party entitled to dispose of the goods.
• Article 14(2): If no instructions are received in time, the carrier may act in what they believe is the best interest of the entitled party.
• Article 15(1): If delivery is prevented at the destination, the carrier must contact the sender for instructions.

What Went Wrong

• The consignee’s instructions came too late—only after the shipment was already en route back to Bulgaria
• The driver was kept in limbo for days with no resolution or directive
• Communication gaps between the freight forwarders, carrier, and sender delayed action
• The ultimate outcome? The goods were destroyed. Liability and compensation issues remain unresolved

Key Takeaways

1. Every seal matters – Even a minor customs seal issue can result in full rejection.
2. Record everything – Any change must be noted in the CMR and communicated immediately.
3. Silence is costly – Lack of timely instructions leaves carriers with no choice but to make executive decisions.
4. Delays hurt everyone – The longer the indecision, the higher the chance of loss, destruction, and legal trouble.
5. Respect the CMR Convention – Knowing and applying its articles in real-time is critical to mitigating risk.

 

Final Thoughts

This case underscores the vital importance of coordination, documentation, and proactive communication in international transport. In a system where even a broken seal can ruin a shipment, following the correct procedures isn’t optional—it’s survival.

Road accidents in logistics can escalate into complex claims involving multiple stakeholders, legal frameworks, and insurance policies. The CMR Convention provides a legal foundation for determining liability, but navigating it effectively requires clarity, preparation, and proactive communication.

In this article, we explore how carriers, freight forwarders, and shippers can handle damaged cargo claims efficiently, avoid common pitfalls, and minimize financial and operational disruptions.

Art. 17(2) exempts carriers from liability for cargo damage if the event occurred due to factors beyond their control. In cases of road accidents, this means:

• • Carrier Exoneration: If the carrier is not at fault for the accident, their CMR insurer may reject the claim. Instead, the claimant must seek compensation from the Motor Third Party Liability (MTPL) insurer of the at-fault vehicle.
  • Practical Implications: A shipper unfamiliar with Art. 17(2) may incorrectly pursue claims with the carrier’s CMR insurer, only to face delays and rejection. This highlights the importance of knowing where to direct claims.

The Importance of the Police Protocol

The police protocol is a cornerstone document in resolving road accident claims. It identifies the party at fault and provides an official record of the incident, which is critical for insurers.

Challenges in Obtaining It

• • Country-Specific Hurdles: In some jurisdictions, obtaining the protocol can be slow and involve legal complexities, such as requiring court prosecutor approval.
  • Alternative Documentation: If the full protocol isn’t immediately available, preliminary accident reports, witness statements, or other third-party records can serve as interim evidence. We have one seminal case resolved without a police protocol which

Why It’s Essential

The police protocol helps:

1. Determine Liability: Clearly identify the responsible party for insurers and claimants.
2. Justify Costs: Insurers require this document to approve claims related to damaged cargo and associated costs.
3. Avoid Disputes: An official record prevents disagreements about the cause of the accident or the responsible party.

Breaking Down the Costs and Insurance Coverage

Road accidents often incur a range of costs. Associating each expense with the correct insurance policy is critical to ensure smooth claims resolution.

1. Cleaning the Road

• • Insurance Coverage: MTPL
  • Details: Spills or debris from the accident must be cleared to restore road safety. MTPL insurance covers these costs as they relate to public infrastructure.

2. Moving the Vehicle and Goods

• • Insurance Coverage: Casco (if you’re patient 😊 ) and CMR (if you have good coverage 😊 )
  • Details: While Casco covers vehicle damage, expenses related to towing and transport of the vehicle may need to be settled upfront or addressed through separate agreements with insurers. Transport operations for the goods in order to minimize the claim costs are only included in appropriate CMR Insurance coverage.

3. Cargo Damage

• • Insurance Coverage: CMR
  • Details: A surveyor evaluates the condition of the cargo to determine its usability. Costs for surveys, repackaging, and destruction of unsalvageable goods fall under the CMR policy together with costs of the scrapped goods.

Why Cost Allocation Matters

• • Avoid Delays: Misallocating costs can lead to rejected claims and delayed compensation.
  • Simplify Negotiations: Correctly attributing costs streamlines discussions with insurers, preventing unnecessary disputes.
  • Minimize Financial Risk: Knowing which policy covers each expense ensures carriers, freight forwarders, and shippers aren’t left shouldering unnecessary costs.

Proactive Communication: A Critical Component

Effective communication is the key to handling damaged cargo claims efficiently. Proactive updates keep all stakeholders informed, aligned, and focused on resolution.

Best Practices in Communication

1. Notify Insurers Immediately: Provide a detailed account of the incident, supported by photos and preliminary reports.
2. Engage Surveyors Quickly: Early involvement ensures the condition of the cargo is documented thoroughly.
3. Coordinate with Clients and Receivers: Transparency builds trust and ensures decisions about cargo disposal or salvage are made collaboratively.

Example from Practice

In a previous case study, we demonstrated how proactive communication across multiple stakeholders—freight forwarders, carriers, and insurers—resulted in swift claim validation and minimized disruption. By acting transparently and promptly, we preserved trust and relationships throughout the transport chain.

Best Practices for Navigating Damaged Cargo Claims

Road accidents involving damaged cargo are challenging, but with the right strategies, carriers, freight forwarders, and shippers can achieve efficient resolutions:

1. Understand the CMR Convention: Familiarize yourself with Art. 17(2) and other key provisions to know your rights and responsibilities.
2. Obtain Documentation: Push for the police protocol and gather all available evidence to justify claims.
3. Allocate Costs Correctly: Know which insurance policy (MTPL, Casco, or CMR) covers specific expenses to avoid delays or disputes.
4. Prioritize Communication: Proactively inform and involve all stakeholders to maintain trust and alignment.
5. Engage Professionals: Work with claims experts like Cargofort to navigate complexities and protect your interests.

Conclusion

Navigating damaged cargo claims after a road accident requires legal knowledge, proactive communication, and meticulous cost allocation. For carriers, freight forwarders, and shippers, these steps are essential to minimize losses, maintain operational efficiency, and preserve relationships across the transport chain.

At Cargofort, we specialize in simplifying complex claims, turning challenging situations into manageable outcomes. With our expertise, we ensure your interests are protected, your claims are resolved quickly, and your business stays on track.

Facing challenges with damaged cargo claims? Contact Cargofort today and let us handle the complexities so you can focus on what matters most—your business.

Stay ahead in 2025 with Cargofort’s Logistics Profit Playbook. From improving packaging and rethinking cost transparency to mastering niche markets, learn 10 essential strategies to grow your logistics business.

1. Review Your Liability/Cargo Insurance Meticulously

• What are the limits? Do you need higher or lower coverage?
• Pay attention to sub-limits for specific events. For example, a policy with a 2M EUR limit but a 50K EUR sub-limit for electronics makes no sense if you’re shipping camera equipment worth millions weekly.
• Ask your provider for a tailor-made solution. Off-the-shelf insurance rarely adapts well to your specific needs.

2. Evaluate Claims Handling and Patterns Thoroughly

• How much has your claims team saved by fighting unjustified claims?
• Deep analysis of recurring claims provides insights for proactive risk prevention. Look for seasonality, patterns, and high-risk destinations.
• Does your claims team push to resolve all cases, or do you have dozens of “dead claims” sitting unresolved for months? There’s always a way to resurrect stalled claims by adopting a new angle. Fewer reserves on your insurance balance sheet mean lower premiums.

3. Packaging, Packaging, Packaging…

• Whether you’re a shipper, consignee, carrier, or forwarder – poor packaging leads to costly claims. Improve packaging and adapt it to the transport mode.
• It’s not about more packaging but the right packaging. Know your cargo and how it behaves in trucks, containers, or air freight. Packaging should protect, not overcomplicate.

4. Re-assess Contracts of Carriage

• The biggest danger? Bad or outdated terms and conditions. Remember, anything not covered by law falls under ‘freedom of contract.’ Stay protected before the cargo leaves the warehouse.
• How you assign transport matters. Have a transport lawyer review your contracts for outdated practices.
• How you accept carriage matters even more. Avoid contracts so complex they need a team of lawyers to decode. Use a clear confirmation document to establish the terms you’re working under.

5. If a Carriage Goes South, CALL Until Back on Track

• When something goes wrong, don’t rely on blunt emails and delayed responses. Pick up the phone.
• Call all involved parties and aim for immediate alignment to get the carriage moving again. Your phone bill won’t break you, but unresolved issues will drive up claims.

6. Hire a Proper Risk Manager

• Hiring someone who understands transport law, insurance, and logistics will deliver 10x ROI by preventing costly mistakes.
• Many major production plants are already reporting over 30% reductions in 2024 quotas. If a recession hits, proactive risk assessments could be your lifeline.
• If you don’t manage your risks, they will manage your profits.

7. Systems Beat Software – Yes, We Said It

• LogTech TMS tools are everywhere, but most fail to balance marketing promises with actual efficiency.
• Instead of chasing the latest overcomplicated tech, focus on building internal systems and processes tailored to your needs.
• Many carriers and forwarders have wasted time and money on flashy tools only to end up with huge bills and confused teams. Stick to basics and build systems from the ground up.

8. Niche & Specialty – Trivial, Right?

• Less market volume in 2025 means more competition for the same freight. Competing with 30-50 companies for small margins is rarely worth it.
• Instead, dominate a niche you’re already working with or develop a specialty from your existing network.
• Niche focus drives higher profitability, builds expertise, and strengthens relationships over time.

9. Free Up 10% of Your Work Week for New Opportunities

• Yes, we said it. No meetings, no calls, no CRM – just time to think.
• Too many logistics CEOs and managers get so caught up in operations they forget to seek the next big revenue boost.
• A dedicated time block for trend analysis and out-of-the-box thinking could unlock exponential growth.

10. Master the Art of Cost Transparency

• Break down your entire cost structure, from operational expenses to risk coverage.
• Identify areas where margins are unnecessarily tight or where costs have crept up unnoticed.
• Clear cost visibility allows for smarter pricing, stronger negotiations, and higher profitability.

Ready to thrive in 2025? Implement these strategies and watch your logistics business reach new heights—even in uncertain times.

When transporting goods internationally, safeguarding your cargo against potential risks is crucial. Marine cargo insurance provides this protection, and at its core are the Institute Cargo Clauses (ICC) – standardized terms defining coverage levels. Recognized and utilized by insurance companies worldwide, including those in Germany with their DTV-ALL RISKS conditions, these clauses are essential knowledge for anyone involved in shipping goods.

What Are Institute Cargo Clauses?

The Institute Cargo Clauses are a set of standardized insurance terms developed by the Institute of London Underwriters. They outline the risks covered during the transportation of goods by sea and are divided into three main categories:

• Clause A (All Risks): Offers the broadest coverage, protecting against all risks of loss or damage to the insured cargo, except for specific exclusions.

• Clause B (Named Perils): Provides coverage for specific listed risks such as fire, explosion, vessel sinking, capsizing, or collision.

• Clause C (Named Perils): Offers the most limited coverage, covering fewer risks than Clause B, primarily major incidents like fire or vessel sinking.

These clauses are globally recognized and form the foundation of marine cargo insurance policies. In Germany, for instance, insurers use similar conditions known as DTV-ALL RISKS, which align closely with the ICC.

Why Are These Clauses Important?

Understanding the differences between these clauses is vital for cargo owners and freight forwarders to ensure appropriate coverage:

• Risk Assessment: Selecting the right clause based on the nature of your cargo and the risks involved in its transportation can prevent significant financial losses.

• Cost Efficiency: Balancing the level of coverage with insurance premiums helps in managing costs effectively.

• Contractual Clarity: Clearly defining the terms of coverage in shipping contracts avoids disputes and misunderstandings.

Practical Use Cases

• Clause A: Ideal for high-value or sensitive goods requiring maximum protection, such as electronics or perishable items.

• Clause B: Suitable for moderately valued goods or shipments through relatively safe routes, like raw materials.

• Clause C: Best for low-value, non-fragile goods where minimal coverage suffices, such as bulk commodities

 

Further Reading

For a deeper understanding of cargo insurance and its nuances, you might find these articles helpful:

• What is valuable to know about “Cargo Insurance” in 2022?
• Unveiling the Hidden Dangers: The Consequences of Inaccurate Declared Information in Cargo Insurance

Official Institute Cargo Clauses Documents

For detailed information, you can refer to the official ICC documents:

• Institute Cargo Clauses (A)
• Institute Cargo Clauses (B)
• Institute Cargo Clauses (C)

By familiarizing yourself with the Institute Cargo Clauses, you can make informed decisions to protect your shipments effectively, ensuring peace of mind in your logistics operations.

Sources:

https://www.lmalloyds.com

https://www.munichre.com/content/dam/munichre/mrwebsitesnmu/documents/NMU_Institute_Cargo_Clauses_2009.pdf/_jcr_content/renditions/original./NMU_Institute_Cargo_Clauses_2009.pdf

https://www.sedgwick.com/blog/marine-insurance-why-institute-cargo-clauses-matter/?loc=eu

With the merger, customers get even more optimized and personalized services from one center

Claims Trans, the innovative company for resolving complex transport cases and all types of claims for carriers, freight forwarders and other logistics companies, becomes part of Cargofort. Thus, Cargofort, as a leading technology company that provides specialized insurance solutions to the logistics market, will be able to offer its customers even more optimized services from a single hub. This merger makes the new company one of the significant players in the logistics industry, as it combines the offering of expert services with solid international experience in claims/case handling and insurance in transport and logistics.

“The acquisition of Claims Trans is a key move in our growth and development strategy through which we are expanding our business and strengthening our presence in international markets. Resolving problematic transport situations should be easy and intelligent, and this has always been our focus. Our goal is to optimize the processes and communication of the parties involved in a case by relying on mediation, a professional tone, and software that supports these processes, which benefits not only our customers but also their logistics partners. In terms of logistics insurance, our mission is to make it easy, intuitive and fast for our insured clients. The logistics industry needs this – understandable, accessible, easy-to-use insurance that includes transparent and streamlined claims management,” said Marian Atanasov, CEO of Cargofort.

The merger of the two companies

provides an even larger team with solid experience and more personalized and expert customer support. The services offered by Cargofort are expanded, which in addition to specialized premium insurance with a focus on:

✅ Carrier’s liability insurance (CMR)

✅ Forwarder’s liability (including under the CMR Convention)

✅ Cargo insurance (Cargo in transit)

✅ General insurance lines for transport and logistics companies

A wider range of specific services are now included in the Transport and Logistics sector: 

🚚 Claims management in transport & logistics

📄 E-CMR (ELECTRONIC WAYBILL and its implementation in Bulgaria)

📝 Creation and optimization of transport contracts

🎓 Trainings and seminars for companies

Among the main benefits for customers of the union are:

• Providing digital insurance expertise in transport and logistics as an insurance broker through the proprietary platform “Cargofort App”
• Professional resolution of transport cases and claims
• Development of the electronic consignment note (eCMR) offering and integration in the Bulgarian logistics industry

Customers also get:

• Specialised advice in transport law
• Drafting and optimization of transport contracts
• Conducting practical trainings for logistics companies to prevent and optimize problem-solving processes
• As an added value for the benefit of all stakeholders in the logistics industry, the Cargofort team creates useful content by sharing its own unique experiences in relation to case studies, industry trends, and useful practices on the company’s website and social media.

Transport and logistics companies can find out more about the benefits of Cargofort’s premium cover insurance products and transport claims management services at https://cargofort.com/ 

The merger of Claims Trans and Cargofort makes a very strong statement for the development of the company by offering its expert services for the benefit of clients not only at home but also abroad.

About Cargofort
Cargofort is one of the leading companies specifically specialized in transport insurance in the country. Its core strength is its use of technology to offer smart solutions in logistics insurance and this has positioned it as an innovator in the industry. It has a team of professionals with many years of experience in insurance, logistics as well as transport law. Thanks to their expertise and professionalism, clients get the coverage they need to protect their business, specialists they can rely on in every situation, successful claims payouts and resolved cases. All of this results in cost savings and loss containment, adds focus on the important things and business development, along with more peace of mind for Cargofort customers.

About Claims Trans

Claims Trans is an innovative claims handling company in the transport sector established in 2018. It handles the control of all transport cases and claims from the moment the situation arises – until its full resolution. Since its inception, it has successfully resolved more than 4000 cargo cases, won numerous court cases in transport law, conducted numerous seminars and trainings on damage prevention. Claims Trans’s expert team with highly specialised experience in logistics claims resolution has over the years succeeded in setting a new standard for the resolution of highly complex and material cases, relying on mediation and commercial negotiation. This in itself leads to a different dynamic and a calm tone of discussion between the parties involved in the supply chain.