We’ve expanded to Chicago! Visit our Chicago locations page to learn more and meet the team.
We’ve expanded to Chicago! Visit our Chicago locations page to learn more and meet the team.
Protecting your cargo is essential in a world where loss, damage, and unexpected disruptions can occur at any point during transit. OCEANAIR’s cargo insurance covers your freight from the moment it leaves the warehouse until it reaches its final destination, whether it moves by land, sea, or air. By securing comprehensive coverage through OCEANAIR, you minimize risk, mitigate financial loss, and gain peace of mind knowing your goods are protected long before an incident occurs.
Although the likelihood of an in-flight incident is low, the impact can be severe when one occurs. Airlines also impose strict liability limits—typically around $32 per kilo for international shipments and $0.50 per pound for domestic freight—and these limits apply only if you can prove the airline was at fault. Without proper cargo insurance, shippers may face significant financial exposure in the event of loss or damage.
Many shippers believe catastrophic ocean events are unlikely, but general average proves otherwise. When a vessel suffers a major incident, every shipper on board must contribute to the costs of saving the vessel and its cargo, even if their own goods are undamaged. Carrier liability is limited to just $500 per shipping unit under the Carriage of Goods by Sea Act, and shippers may be required to pay upwards of 60% of their cargo’s value before undamaged goods are released. Without proper cargo insurance, shippers risk significant financial exposure, cargo holds, auctions, or legal action.
Theft from unattended trucks is considered a low-risk, high-reward crime. CargoNet reports an average loss of $254,800 per incident, excluding the added costs of replenishment, refunds, and lost sales. To keep rates competitive, most truckers limit their liability and are responsible only for losses caused by their own negligence. As a result, events such as theft, severe weather, or third-party accidents are typically not covered without proper cargo insurance.
Even under CIF or CIP Incoterms—where suppliers are required to procure insurance—the responsibility for loss ultimately falls on you, the buyer. Because you may have little control over the quality or scope of insurance purchased on your behalf, many experts recommend negotiating terms such as EXW, FOB, FCA, or CFR, which allow you to select your own insurance provider and ensure proper coverage.
Often, yes. Many foreign suppliers or their forwarders add placement fees or inflate premiums above U.S. market rates. Always review your invoice carefully to determine the true cost of the insurance being provided—and ask OCEANAIR for a comparison quote to ensure you’re not overpaying.
Not always. Cargo insurance is an unregulated industry, so policies can vary widely in coverage, deductibles, exclusions, and claims handling. To avoid gaps in protection, request a full copy of your supplier’s policy or a certificate of insurance that details its terms and conditions.
It’s important to verify that the insurer behind your policy has strong financial ratings from reputable agencies like A.M. Best, Standard & Poor’s, or Moody’s. A strong rating indicates the carrier will be able to pay claims even in volatile economic conditions. OCEANAIR’s insurance is underwritten by Lloyd’s of London, rated A (Excellent) by A.M. Best.
If your insurance is arranged overseas, you may be assigned an inexperienced or subcontracted adjuster who is unfamiliar with transportation-related losses. To avoid delays or mishandled claims, ask your supplier for a list of their adjusters. For reliable support, look for adjuster networks approved by Lloyd’s of London or AIMA that maintain some of the industry’s highest standards.
You can find more information about General Liability on our Governing Terms & Conditions of Service
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