Okuzeka
International Trade vocabulary · Shipping and Transport

Cargo insurance

Meaning in international trade, with examples

nounCommon term

In international trade, cargo insurance means: Insurance that covers goods against loss or damage while they are being transported by sea, air, road or rail.

In Turkish: nakliyat sigortası, emtia sigortası, yük sigortası

How it is used

Who buys it depends on the Incoterms rule: the seller under CIF and CIP, usually the buyer under FOB, CFR and FCA. Policies are based on clauses such as Institute Cargo Clauses A, B or C, and the cover is often 110 percent of the invoice value.

Example sentences

  1. We arrange cargo insurance for every shipment, even when the buyer does not ask for it.

  2. According to the L/C, the cargo insurance must cover 110 percent of the CIF value.

Common collocations

  • take out cargo insurance
  • cargo insurance policy
  • cargo insurance certificate
  • all-risks cargo insurance
  • CIFCost, Insurance and Freight: an Incoterms rule in which the seller pays sea freight and minimum insurance to the destination port, but the risk passes to the buyer once the goods are on board at the port of loading.
  • CIPCarriage and Insurance Paid To: an Incoterms rule like CPT, except that the seller also buys cargo insurance for the buyer up to the named destination.
  • freightGoods carried by ship, plane, truck or train; also the charge paid for carrying them.
  • shipmentA quantity of goods sent together from one place to another, or the act of sending them.

More terms: Shipping and Transport

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