Transport Insurance? Unnecessary… Right?

Insurance provides certainty in uncertain times. That’s exactly why we, as a logistics service provider, always recommend transport insurance. But are we at Berkman Forwarding just being overprotective? After all, doing business means taking risks—and importing goods from distant countries even more so. Why not just skip transport insurance and save on costs?

Well… not so fast. Let’s explain why this isn’t the best idea.

Why transport insurance matters.

Without transport insurance, the owner of the goods is responsible for any damage or loss during transport. Think: loading accidents, cargo shifting en route, theft, or even temperature fluctuations.

In some cases, you might recover damages from the carrier or stevedore, but success isn’t guaranteed. Liability is often heavily limited and usually far below the value of the goods.

How does this differ from other insurance?

Transport insurance specifically covers your goods, regardless of the cause of loss or damage. Liability insurance, on the other hand, only covers claims from third parties for damage to their property, not your own.

Even in cases where carriers are legally protected by conventions or force majeure clauses, transport insurance ensures you’re still covered.

Coverage & exclusions.

Transport insurance is there to cover all risks up to the insured value of the goods. The common exclusions on this rule are damage caused by intent or gross negligence, cyberattacks, and natural disasters.

The tricky part: "General Average".

General Average is a maritime principle where all parties share costs when a ship and its cargo are saved—for example, after a fire or engine failure. Even if your goods are undamaged, you’re still responsible for your share of the costs.

These cases can take years to settle, and costs can be substantial. Luckily, transport insurance covers General Average as well.

The bottom line.

Transport insurance is not standard! It must be specifically requested by the cargo owner, but it can save you from massive, unexpected expenses and headaches down the line.

And yes, Berkman Forwarding can arrange this insurance for you through our trusted partners, though you’re free to handle it your own way.

Have questions or want advice on your shipment? Our team is happy to help!

Get in touch!