cargo insurance

Marine cargo insurance is the most common method used to protect the value of your goods from physical damage, theft, or general average. Cargo insurance is not always automatically included for all shipped goods—this often varies by region. Instead, shippers or consignees can purchase policies in the insurance market from niche providers, large brokers, local agents, websites, and freight forwarders.

I often compare cargo insurance with car insurance. You pay for insurance coverage on your car because accidents and theft happen. You simply can’t always plan or avoid these types of things.  Even after years of no problems, you’re still willing to cover your car. After all, getting only the most basic coverage could leave you out a lot of money in the eventuality that an accident did occur.

It’s the exact same principle with cargo insurance. By choosing to pay a small fraction of the value of your goods, you’re protecting yourself for the day that the unexpected happens.

Solution and Benifits

Designed to protect your cargo, this offering is brought to you by Arneet International. This means that you can be sure that your cargo will now enjoy the synergy of world-class logistics and insurance solutions.

Your cargo can be exposed to various risks while in the normal course of transit. Be it theft, natural disasters, or accidents, we can provide comprehensive coverage to our world leading suite of supply chain services. We protects your cargo from a wide range of losses and damages, so you can feel at ease.

When it comes to your business, we understand that every single cargo is important. That’s why, our Cargo Insurance is available for a broad range of commodities, including many reefer products.

When you do business with us, you can relax knowing that your shipment is insured: from door to door, and from departure to arrival. No matter the mode of transport or the carrier.

Arneet International’s Cargo Insurance makes your life easier. By giving you the benefit of settling all your bills in one place with a single regular Invoice.

Completely integrated with our online booking portal, with Arneet International’s Cargo Insurance, you can be sure that your cargo is covered throughout the entire supply chain with just a few clicks. It’s quick, easy, and convenient!

Enjoy the option of choosing from 2 different types of contracting. Whether you wish to purchase your insurance per shipment’ or agree to have insurance included with every shipment upfront, we make purchasing your cargo insurance more convenient for you.

Use our containers knowing you are covered in the event of them being damaged while in your custody. Our Cargo Insurance covers damages worth more than USD 500, for dry cargo containers only.

Risks covered


There is no requirement to buy cargo insurance. However, it is highly recommended so you can better protect your goods from exposure to risks—some that could be catastrophic. It’s important to weigh the insurance costs with the potential losses and collateral damage that could occur without insurance.

Keep in mind that even if you prove an ocean carrier is legally liable, their limit of liability is $500.00 USD per package or customary shipping unit, or the actual value of the goods, whichever is less. And air freight carriers are only liable for 19 SDR per kilo (around $24.00 USD). As you can imagine, most freight has a much higher value than these rates. Therefore, without the proper insurance, you could lose a big part of the value of your cargo.

Some of the most common types of damage are outside a carrier’s liability, including fire, acts of God, strikes, accidents of the sea, insufficiency of packing, and more. With these regulations in place, proving a carrier is legally liable for your freight can be difficult.

Next to that, there are many companies handling your freight throughout storage and transit. It can make it difficult to trace where damage occurred or prove who is liable for said damage. With a cargo insurance policy, you are covered for these losses and don’t need to prove liability.

If a marine carrier experiences a fire or some other extraordinary sacrifice or expenditure occurs, the carrier may declare general average. If this happens, all those who have cargo on the ship may be required to share in the cost of the expenditure.

If an ocean carrier declares general average and your cargo was on the ship, your cargo will not be released until the salvage security and general average deposit are calculated. This can take weeks and be quite costly. For example, I had a customer several years ago that had to pay close to $50,000 USD simply to release their cargo from the container. The freight was only valued at $100,000 USD.

Simply making a trade deal with buyers or suppliers may not be enough coverage. Under cost insurance and freight (CIF) terms, they are only obligated to provide minimal coverage. If you choose to pursue this type of coverage, always closely examine their policies to make sure your cargo is sufficiently covered.

Many companies out there will offer cargo insurance. But finding the right one for your business may take some research. Just because an insurance provider has the highest rates doesn’t always guarantee the best coverage. You need a provider who cares about your freight. That’s why Arneet International works hard to provide:

  1. The right cargo insurance provider will offer a variety of flexible policies based on your needs. And with low or no deductibles.
  2. All-risk coverage. Find a provider who can coverage all of your standard commodities against financial exposure, physical loss, or damage while your goods are in transit.
  3. Qualified insurance teams. With plenty of insurance experts to guide you through the purchasing and claims process, great cargo insurance providers help you navigate the complicated rules and regulations to quickly resolve claims.