Cargo Insurance
Insurance that covers goods against loss or damage in transit, often written on Institute Cargo Clauses A, B or C for about 110% of value.
TL;DR: Cargo insurance protects the value of goods against loss or damage while they are being shipped. It matters because carriers’ liability is limited and usually pays far less than the value of the goods.
Many marine cargo policies use the Institute Cargo Clauses. Clauses (A) give the widest cover, on an all-risks basis subject to listed exclusions. Clauses (B) and (C) only cover named events. Clauses (C) is the most limited and focuses on major events such as fire, sinking, stranding or collision. Common exclusions include poor packing, delay, normal wear and inherent vice.
The insured value is often set at 110 percent of the CIF value. The extra 10 percent is meant to cover costs and some expected profit. This is also the minimum required by Incoterms 2020 under CIF and CIP.
Who buys insurance depends on the Incoterm. Under CIF, the seller must buy at least Clauses (C) cover. Under CIP, it must buy Clauses (A). Under FOB, FCA, CFR and CPT, the buyer carries the transit risk and should arrange its own policy.
Glass mosaic is fragile, and breakage is a common claim. Buy all-risks cover, and check if the policy treats breakage as covered or requires a deductible. On arrival, inspect crates and pallets before signing the delivery receipt, note any damage, and take photos. Claims move faster with this evidence. Compare with CIF, CIP and Freight Forwarder.