Cargo Insurance for Freight Shipments
Why cargo insurance matters
International freight moves through multiple handling points — warehouses, terminals, vessels, trucks — and at any stage cargo can be lost, damaged, or delayed. Standard carrier liability is limited by international conventions (Hague-Visby for ocean, Warsaw/Montreal for air) and rarely covers the full commercial value of your goods.
Cargo insurance fills that gap. It's quoted separately from freight charges and is strongly recommended for any shipment where the cargo value exceeds what you're willing to absorb as a loss.
All-risk cargo cover
All-risk cover is the broadest form of cargo insurance — it covers physical loss or damage from any external cause unless specifically excluded. Typical exclusions include:
- Inherent vice (goods that deteriorate by their own nature)
- Inadequate packing
- War and strikes (available as an add-on on most policies)
- Delay losses (consequential, not physical damage)
Holo recommends all-risk cover as the default for most commercial cargo. Named-perils cover (narrower, cheaper) is available where appropriate.
How cargo insurance works with Holo
Holo coordinates cargo insurance as part of the shipment — but with important boundaries:
- Insurance is quoted separately from freight charges. It does not appear bundled in the OFR or other freight line items.
- Cover terms are insurer-determined. The insurance contract is between you (the cargo owner) and the insurer. Holo is never a party to the policy.
- The insurable value is typically the commercial invoice value plus 10% (CIF + 10% is standard practice).
- Claims are handled directly with the insurer. Holo's operators can assist with documentation but are not the claims counterparty.
This structure means your cover is real, arms-length insurance — not a freight operator's internal liability cap.
What to declare at booking
Provide the following to get an accurate insurance quote:
- Commodity description and HS code
- Commercial invoice value (currency)
- Packing type (pallets, cartons, bulk, etc.)
- Any special characteristics (fragile, temperature-sensitive, high-value)
For temperature-controlled cargo, declare temperature range requirements. For high-value cargo (electronics, jewellery, art), declare accurately — under-declaration voids cover.
Insurance vs carrier liability
| Cargo Insurance | Carrier Liability | |
|---|---|---|
| Cover basis | Insured value (CIF + 10%) | SDR-limited per package or kg |
| Claims counterparty | Insurer | Carrier |
| Coverage breadth | All-risk | Named perils only |
| Recommended for? | All commercial cargo | Not a substitute |
Related services
- Special cargo — reefer, hazmat, and high-value cargo have specific insurance considerations
- Customs brokerage — cargo held by customs during clearance is still at risk
- How it works — understand the full shipment lifecycle and where exposure arises