Companies which carry shipments of goods face unique risks. Cargo insurance protects the risk of damage or loss to any cargo during shipping, whether by air, land, or sea. Any company that moves shipments owned by other companies must have carrier liability insurance. Carrier liability only protects the company if it can prove they were not negligent in any way in shipping the cargo. If the shipper can show that the carrier was negligent, they can sue for financial damages which would not be covered by carrier liability insurance.

Freight insurance protects a carrier company from being liable for any other damages to shipments. Carriers can choose to cover shipments with a general insurance policy that insures all of their shipments, or they can buy policies for individual shipments. Companies who own the warehouses or property that hold shipments should also obtain freight insurance.

There are several different types of freight insurance. Land carrier insurance covers shipments transported on land by trucks or small vehicles. Marine cargo insurance protects shipments by boat or by air, and even covers loading and unloading. Some marine policies have a unique exception which excludes partial losses to shipments unless the ship has a catastrophic accident such as sinking or collision with another ship. As every company and shipment is different, a commercial insurance professional can tailor policies to suit a variety of risks.