Goods in transit face weather, theft, handling damage, and accidents. Cargo insurance is coverage that protects the financial value of goods against loss or damage while they are being transported by sea.

Policies may be arranged by the shipper, the buyer, or sometimes the carrier under contractual terms. Clauses define covered perils, exclusions, deductibles, and the basis of valuation. Institute Cargo Clauses are widely used standard forms. Claims require prompt notice and documented evidence of loss.

Insurance does not replace careful packing and stowage, but it transfers residual risk. For high-value or vulnerable cargo, cover is treated as an essential cost of the voyage. Disputes often turn on whether damage occurred during the insured transit and whether exclusions apply.

• Insurance protecting goods during sea transport
• Covers loss or damage from defined perils
• Arranged by shipper, buyer, or carrier
• Claims need timely notice and proof of loss