What is the difference between cargo insurance and carrier's liability?
Cargo insurance covers the value of the goods themselves; carrier's liability covers the carrier's legal obligation to compensate the owner of the goods in the event of loss or damage.
In practice, the two overlap within the carrier's cargo policy, but the liability limits set out in the transportation contract (often expressed in dollars per pound) may differ from the actual value of the goods. A specialized broker makes sure your insurance limits match your contractual commitments.
