Insurance in Logistics
In international transportation, insurance is one of the key tools for managing financial risks related to cargo.
During transit, cargo may be exposed to damage, loss, or other unforeseen circumstances. For this reason, it is essential to clearly define the types of insurance and the scope of responsibility.
In logistics, three main types of insurance are commonly used:
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Cargo Insurance
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Carrier’s Liability Insurance (CMR Insurance)
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Freight Forwarder Liability Insurance
Cargo insurance protects the goods themselves during transportation.
It covers risks such as:
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Damage to or total loss of cargo
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Accidents, fire, and water damage
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Theft or loss during transit
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Natural events
Cargo insurance is typically based on Institute Cargo Clauses (A / B / C):
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Clause A - broad coverage (All Risks)
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Clause B - medium coverage
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Clause C - minimum coverage
In practice, Clause A is most commonly recommended, as it provides the highest level of protection.
Responsibility:
Cargo insurance is usually the responsibility of the cargo owner (client), unless otherwise agreed under Incoterms® terms.-
CMR insurance covers the carrier’s liability in international road transport and is based on the CMR Convention.
Important points:
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It protects the carrier, not the cargo
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It applies only if the carrier’s direct liability is proven
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Compensation is limited by international standards (SDR per kg)
In practice, this means:
The full value of the cargo is usually not compensated in full.
Conclusion:
CMR insurance does not replace cargo insurance and should not be considered as full coverage for the goods.-
This type of insurance protects the freight forwarder within the scope of their professional activities.
It typically covers:
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Operational errors
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Documentation mistakes
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Communication issues
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In certain cases, limited risks related to the cargo
However:
This insurance does not replace cargo insurance and does not provide full compensation for the cargo value.-
Vengo Group offers clients optimal insurance solutions based on the cargo’s characteristics and the transportation route.
Our goal is to ensure that cargo is not only transported efficiently, but also protected against financial risks throughout the entire logistics process.
If you are not sure which type of insurance is required for your cargo, contact us - the Vengo Group team will help you make the right decision.