Carrier liability insurance covers only what the carrier is legally answerable for under the CMR Convention, with monetary caps and a list of exclusions. Cargo insurance covers the goods themselves, regardless of fault. OPTIMUS TRANSPORT carries liability cover of EUR 1,000,000, but for goods with high value per kilogram we recommend adding a cargo policy on top.
Why a high sum insured does not settle the matter
A sum insured is the ceiling on a payout, not a promise to cover every loss. Before an insurer reaches that ceiling, two things are tested: whether the carrier is liable at all, and up to what amount carriage law makes them liable. The CMR Convention contains exclusions, for example inherent vice of the goods, defective packing by the sender, or circumstances the carrier could not avoid. If a loss falls inside an exclusion, the size of the sum insured is irrelevant.
The arithmetic: when the weight cap hurts
Picture a pallet weighing 300 kilograms. Under a weight-based cap, compensation from carrier liability is proportional to that weight, whether the pallet holds construction film or mobile phones. For heavy, cheap goods the cap is usually sufficient. For light, expensive goods the gap between value and cap becomes dramatic. This is not a flaw in any particular carrier but the architecture of international carriage law, explained further in carrier liability and the 8.33 SDR limit.
What cargo insurance adds
- Cover for the value declared in the policy, rather than a figure derived from weight.
- Response to events the carrier is not liable for, including fortuities inside the CMR exclusions.
- A faster claims path, because fault does not have to be settled first.
- The option to cover the whole chain, including transhipment and temporary storage.
The scope and exclusions of a typical goods policy are discussed in cargo insurance, and a side-by-side comparison in carrier liability versus cargo cover.
When the extra policy is worth it
- Value per kilogram is high: electronics, cosmetics, pharmaceuticals, precision components.
- The cargo is unique or hard to replace: prototypes, exhibits, made-to-order machinery.
- Your contract with the receiver carries penalties for non-delivery that CMR compensation will not cover.
- The goods pass through transhipment or wait in a warehouse, lengthening the chain of events.
Practical decision criteria are gathered in when to add cargo insurance for UK shipments.
What to do once damage has occurred
The order of steps matters and shapes the outcome. Visible damage must be noted on the consignment note at delivery, not reported the next day. Hidden damage is notified in writing within the period the Convention allows. Documentation is essential: photographs of the pallets before unloading, a count of missing units, a report signed by both parties. How to run that is described in claims and damage reports and in completing a CMR consignment note. If the goods need assessment before further distribution, we take them in for inspection, as described on the cargo inspection page.
Sources
This is general information, not insurance advice; cover follows from the wording of the specific policy. Want to set the right scope for your cargo? Write through the quote form with the value and nature of the goods and we will propose an approach.
