Protect your Cargo with Insurance


Even the most experienced logisticians aren’t able to predict what will happen to the transported cargo, because there are a lot of situations that are beyond their control. To secure oneself it is necessary to provide cargo with insurance. However a lot of companies want to save money and avoid insurance but the practice shows that such saving is risky since cargo damage or loss can cost a lot more.
“There was a case when the cargo was damaged due to a traffic accident. The cargo was a Liebherr excavator A900 from Germany to Kazakhstan,” Aleksandr Kovalev, sales and customer service manager at ACEX Estonia says.

The cargo was delivered to Tallinn by RO-RO without problems. Later it was loaded to a tent. The approximate time of transportation is 7 days. But there was an accident near Cheboksary. “Providing insurance of the cargo is an integral part of every transportation organized by our company, “Alexander Kovalev says. “This situation is a vivid example of insurance event, it was required to follow all formalities to provide the customer with insurance, present a report of reloading made by the surveyor”.


The surveyor was sent to the place of accident and the excavator was reloaded to another vehicle. All of the formalities were fulfilled and the customer received the insurance payments.

Practically any kinds of cargo are subject to insurance, from equipment to products made of glass and crystals.

How to provide cargo insurance?

STEP 1 - Choose an insurance company

To choose a reliable insurance company is pure science. Monitor insurance companies in the market in advance, ask opinions of colleagues who deal with cargo insurance, consult the carriers or read reviews about insurance payments in the Internet sources.

STEP 2 - Rate of insurance payment

Insurance rate depends on transportation. The amount rate depends on insurance terms, type of transport, and type of goods, route, escort and maintenance. Don't hesitate to ask the representatives of insurance company, your carrier or the forwarding agent for calculation of insurance rate. Be ready to answer the specifying questions of the representative of insurance company.

STEP 3 - Your cargo is in hands of insurance agent

Insurance companies need detailed information about the cargo such as official name of the company, data about the packing dimensions, weight; quantity of positions and batches; possible risks related to that type of cargo. Among such risks there are reloading, moving to the warehouse and others. The company will also require information about the type of cargo and possibility of its damage (whether the cargo is fragile, valuable or perishable); quality of packing; type of transportation; risks (theft, accident, damage).

So after all of the agreements are received, the insurance rate is paid you will receive an insurance certificate and 2 copies of the contract that are signed by both parties. But in case of insurance event the cargo owner won’t receive an insurance payment.

Груз поврежден
Груз поврежден


Alexandra Chagina, Deputy Business development director recommends paying attention to the mistakes that may prevent from payment to the cargo owner.

1. Inattentive filling of the application

If the document contains an inaccuracy in the formal data related to cargo or insuring party the company will have a right to deny payments. That is why the application shall be double-checked. Mistakes may result in financial losses.

2. Untimely notification of the insurance company about the insurance event

The insuring party may send notification about the insurance event within 1 – 3 days. It can be done by means of telephone, mail or internet.

3. Delivery of incomplete documentation to the insurance company

If the insuring party presented an incomplete list of documentation or did not provide evidence of insurance event, the insurance company would have a right to deny the compensation payment.

4. Incorrect statement of risks that are covered by insurance agreement

Any document includes risks that may appear during transportation. If these risks are outlined in the insurance certificate incorrectly or they are completely absent it is impossible to receive insurance payment.


“All of the possible difficulties and details related to preparing of the insurance certificate are described in the rules of cargo insurance,” Alexandra Chagina notes. “The rules are presented at the web site of the service provider and include more than 50 pages of text. As a rule the insurance companies are trying to attract customers by low rates while they cover a very limited number of risks”.

It is advisable for freight owners to prepare cargo insurance with the help of forwarding agent or carrier since they are acquainted with all possible risks related to the transportation. The experts are able to assess all risks and provide maximum safety of the cargo. 

Only the sky is the limit when the insurance certificate is correct.