Why Cargo Insurance is Vital (Carrier Liability Is Not Enough)

A common mistake among new importers is assuming that if goods are damaged in transit, the shipping line or airline will reimburse the full value. The reality is very different and can be costly. 🛡️

Limited Liability vs. All-Risk Insurance International carriers operate under global conventions that severely limit their financial liability. Often, compensation is based on cargo weight, not commercial value. If you transport light but expensive electronics, standard compensation could be negligible compared to your actual loss.

Risks Out of Control Storms, port strikes, crane accidents, or even "General Average" (where all cargo owners share the costs of saving a vessel in distress) are real risks. Without your own insurance, your capital is exposed to unpredictable events.

Financial Peace of Mind Adequate cargo insurance covers the value of the goods, freight costs, and even a percentage of imaginary profit, ensuring that an accident doesn't destabilize your cash flow.

At LOOP, we manage comprehensive policies that shield your investment from the origin warehouse to your door, so your only worry is selling, not recovering losses. ✨