Cargo insurance: carrier liability, forwarder liability or a goods policy
Three different policies that get confused with each other, the CMR liability limit translated into money, and the exclusions that most often stop a payout.
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Three policies that are not the same thing
| Cover | Who it protects | When it responds |
|---|---|---|
| Carrier’s liability | the haulier | where the loss is his fault, within the CMR limits |
| Forwarder’s liability | the organiser of the movement | where the error is in organising it: carrier selection, documents, instructions |
| Goods in transit (cargo) | the owner of the goods | regardless of fault, including fortuitous events |
The key difference: the first two are liability policies. If the carrier is not liable, force majeure, or an inherent defect in the goods, nothing is paid. A cargo policy covers the goods themselves and responds where nobody is at fault.
The 8.33 SDR limit, what it is worth
The CMR convention caps the carrier’s liability at 8.33 SDR per kilogram of gross weight short. SDR is the IMF unit of account; in practice that works out at roughly EUR 9–11 per kilogram depending on the rate.
- A pallet of electronics weighing 300 kg and worth EUR 14,000, liability caps out near EUR 3,000. The rest sits with the owner.
- A pallet of building materials weighing 1,000 kg and worth EUR 900, the cap covers the value several times over.
A quick test: divide the value of the consignment by its weight in kilograms. Above roughly EUR 10 per kilo, carrier liability alone is not enough and a cargo policy is warranted.
The exclusions that stop most claims
- Parking in an unsecured place. Most policies require a secured park for breaks beyond a stated duration.
- Defective packing. If the consignor packed the goods badly, the carrier is not liable, and neither is the policy.
- No reservations on the CMR note. Clean acceptance means the goods were sound at loading.
- Excluded commodities - cash, works of art, live animals, tobacco. Covered only by specific agreement.
- Territory outside the policy scope - destinations beyond Europe usually need an extension.
What to check before signing
- Sum insured per event, not only in aggregate per year.
- The deductible, the figure below which nothing is paid.
- Territorial scope and excluded countries.
- An ADR clause if you move dangerous goods.
- The parking clause and what it demands of the driver.
How we handle it
Cargo LS acts as a freight forwarder: we plan the movement, contract the carrier and remain answerable for the load under the agreement. Carriage is covered under the CMR convention as standard; for high value-to-weight consignments we arrange a separate cargo policy. Destinations are under road freight, and the commercial terms under terms and conditions.
Frequently asked
Is carrier liability enough?
Below roughly EUR 10 per kilogram, usually yes. Above it, no.
Who buys the cargo policy?
Normally the owner of the goods, or the forwarder on their instruction. Settle it before loading, not after a loss.
Is delay covered?
The CMR convention caps compensation for delay at the carriage charges. Consequential loss, such as a cancelled contract, is not covered.