What is Air Cargo Insurance?
Air cargo insurance covers loss of or damage to goods carried by air during flight, transhipment, storage and handling, usually under the Institute Cargo Clauses (Air).
Air freight is preferred for high-value and time-critical goods such as electronics, pharmaceuticals, textile samples, spare parts and valuables. The air carrier's liability is limited per kilogram in SDR under the Montreal Convention, and this limit often falls short of the real value of the goods.
Air cargo insurance protects the real value of the goods regardless of fault. The policy can also cover waiting at airport warehouses, connecting flights and onward road transport to the final delivery point.
What is covered?
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All risks (ICC Air)
All loss and damage except the exclusions in the policy.
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Theft and loss
Theft or loss of goods at airports and transhipment points.
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Handling damage
Breakage and crushing during loading, unloading and transhipment.
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Door-to-door land legs
Road transport to and from the airport.
Optional extensions
- War and strikes clauses
- Temperature-sensitive pharmaceutical and food shipments
- Valuables and sample shipments
Who is it for?
- Importers and exporters of electronics, pharmaceuticals and medical products
- Industrial firms shipping spare parts and urgent consignments
- Fashion and textile companies
- E-commerce companies and users of courier services
Information needed for a quote
Sharing the following information lets us obtain fast and accurate quotes from several insurers.
- Type of goods, packing and value
- Departure and arrival airports
- Door-to-door cover requirement
- Estimated annual shipment volume
Frequently asked questions
Doesn't the airline's liability protect my cargo?
The air carrier's liability is limited per kilogram by international conventions and in some cases does not arise at all. For high-value, light goods this limit is far below their value, which is why air cargo insurance is recommended.
Is air cargo insurance more expensive than marine insurance?
Since air transits are shorter and free of sea perils, rates are generally lower. However, the value and sensitivity of the goods directly affect the premium.
Can samples sent by courier be insured?
Yes. Regular sample and courier shipments can be declared and covered under an annual open cover policy.
Scope of cover and limits are determined by the general and special conditions of the issuing insurer.