Air Cargo Insurance (You Should Know)

Air transport is the fastest, safest and most cost-effective way to import or export goods around the world. Most cargo airlines offer a minimum amount of insurance for distributors, manufacturers, importers or exporters, known as carrier liability. Although this coverage is generally limited, it often covers liability for many unexpected losses, including floods, earthquakes, and natural disasters, but generally does not provide compensation for delicate and high-value products.

Key Takeaways

  • Air cargo insurance basically provides financial security to a buyer or seller against unexpected loss, damage, accident, even shipment delay and more of goods transported by airplane.
  • In particular, large shipping companies seek additional protection, which is provided by insurance companies, freight forwarders and trade-service intermediaries.
  • The cost of air cargo insurance covers the value of the transported items, the flying route, and any history of loss.
  • Air cargo insurance premiums vary based on the coverage, value and nature of the items insured; The destinations of transport and the routes they transport.
  • If you have an import/export company or are a manufacturer or wholesaler, distributor and transport goods by airplane, then you should consider air cargo insurance.

What is Air Cargo Insurance?

Air cargo insurance is a type of coverage policy that gives financial security to the import or export of goods that are being transported by the airplane from unexpected damage. The air cargo insurance covers the insured for goods that are damaged or lost, may even pay compensation for transport delays.

Who Needs Air Cargo Insurance?

Most likely need air cargo insurance for wholesalers, distributors, Import/export agencies, and manufacturers through a carrier. It is to be helped to recover against unexpected financial damages or losses incurred during shipping. Air cargo insurance also truckers who transport medicine, food and other items daily by airplane.

Types of Air Cargo Insurance

Whether you qualify for coverage plan from an air freight carrier insurer, before you should check still be able to request these different air cargo insurance coverage levels. 

You probably know that there are three basic levels of cargo insurance. 

Comprehensive coverageIt is popularly known as all-risk insurance which covers many things simultaneously. Most of the goods need approval to qualify shipment, and usually high  payout is the claim, there are several exclusions, but it’s only some specific to common air freight. 
With Average (WA)Most common in marine shipping, average clauses that have been stolen or left undelivered can be adapted to cover air cargo. 
Free of Particular Average (FPA)FPA insurance is more commonly known as named peril policies. These coverage policies pay only for total loss and are often also used for bulk cargo shipments.

The actual name of the policy may vary by provider. For example, if you may hear comprehensive/all-risk insurance referred to as full-risk insurance coverage. Even if the specifics vary, each of the three types listed is a form of cargo insurance.


Air cargo insurance offers security for shipments of commercial, consumer or any other goods by airplane. Depending on the policy type of insurance coverage policy may provide for damage during goods loading and unloading, any issues with customs, and delays due to natural weather or disasters.