Package Protection: An In-depth guide to Cargo Insurance

Package Protection: An In-depth guide to Cargo Insurance

Published at 20 November, 2021 - 9:42 am by

As a leading self-storage company in Dubai, our range of services also extends to shipping. We are fully licensed and equipped to perform international cargo shipping, including clearance processing for the import and export of goods worldwide. One of the common questions we receive in our shipping services is the role of cargo insurance and how it works. Here we’ve put together a simple guide on all you need to know about cargo insurance.

What Is Cargo Insurance?

It’s apparent that the movement of goods across the world comes with certain risks. There is no absolute guarantee that damage, theft, or loss will not occur. Insurance coverage is there to mitigate these risks successfully. Cargo insurance is a specific method used to protect shipments from any potential physical damage or theft.

Cargo insurance aims to protect the value of goods that can face potential losses during air, sea or land transportation, similar to the self-storage unit insurance that protects your property and peace of mind while your goods are stored elsewhere.

When Do You Need Cargo Insurance?

Moving goods is a tedious process and comes with the risk of hazards and unpredictability. In any standard shipment process, your cargo may be loaded into trucks and containers, pass-through ports, and move through the hands of countless people before it reaches you.


While it’s up to you to decide when it’s best to get cargo insurance, we strongly recommend you to do it every time you ship your goods. This will give you peace of mind and save you from the hassle of having to replace damaged or lost goods.

What Does A Cargo Insurance Cover?

Standard cargo insurance will cover damages that arise from bad weather, loading and unloading, piracy, and other similar risks. Some companies require trucking companies to have carrier liability insurance. But its minimum coverage requirements may not be enough to protect your shipments. This is why we always recommend that our clients get cargo insurance, as it can cover any external cause of loss and damage to your goods.

Some of the common reasons that make many opt for cargo insurance include natural disasters, vehicle accidents, acts of war, piracy, cargo abandonment and customs rejection. When any of your covered events cause damages to your goods, the insurance will pay up to the amount your goods are ensured for.

What Doesn’t A Cargo Insurance Cover?

Cargo insurance will not cover damages caused by inadequate or improper packing. For example, if water seeps into your package and corrodes your goods because of improper packaging, then the responsibility is on you.

Similarly, if your goods were not in good condition when you sent them for shipment, and caused damages while shipping, then the cargo insurance will not cover it if the carrier can show your product had a flaw that caused the damage. Some cargo insurances may also not cover insurance for hazardous materials like electronics and chemicals. Similar conditions apply to self-storage insurances as well.

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