Freight transport is an industry where every journey means responsibility for someone else's property. A company carries goods whose value often far exceeds the value of the vehicle itself, and any accident, theft or delay can lead to a claim from the client. That's exactly why cargo carrier insurance is one of the foundations of a transport business.

Many business owners initially assume that fleet insurance is enough. Yet OCTA and KASKO cover the vehicle and the damage caused to other road users, not the cargo and not your liability towards the customer. If the cargo is damaged or goes missing, those losses stay with the company unless suitable cover is in place. Below we explain which types of insurance apply here and how to combine them.

Why fleet insurance alone is not enough

In international road transport, the carrier's liability is governed by the CMR Convention, which sets out the carrier's obligations and the limits of liability for cargo during carriage. In practice this means the carrier is liable for damage, loss or delayed delivery, but the convention also provides liability limits calculated according to the weight of the goods. As a result, the compensation paid to the client does not always cover the full actual value of the cargo.

This liability is covered by carrier civil liability insurance, commonly known in the industry as CMR insurance. It protects the carrier by covering the amounts they must reimburse to the cargo owner under the convention and the transport contract.

Typical situations where CMR liability insurance becomes relevant:

  • cargo damaged in a road accident
  • cargo or part of it stolen at a parking area
  • goods spoiled because of an incorrect temperature regime
  • delivery delayed, causing losses for the client
  • cargo damaged during loading or unloading

It's important to understand the difference between liability insurance and insuring the cargo itself. A CMR policy covers the carrier's liability within the limits of the convention, while cargo insurance covers the goods themselves regardless of whether the carrier is at fault. This matters especially for expensive or sensitive goods whose value exceeds the liability limits set by the convention.

Freight forwarders play a separate role. A company that arranges transport without carrying it takes on a different responsibility than the actual carrier. In that case, freight forwarder and carrier insurance is useful, as it reflects the intermediary role in the supply chain.

How to build complete cover for a freight business

Choosing the right cover starts with what the company actually does. Domestic transport within Latvia differs from international routes, and carrying food or medicines requires different terms than delivering building materials. The more specific the cargo, the more carefully the policy conditions need to be checked.

When building protection, it's worth assessing the following:

  • which countries and routes the company operates in
  • the typical value and type of the cargo
  • whether temperature-sensitive goods are transported
  • the liability limit per shipment
  • which cases are excluded from the policy
  • whether parking and transhipment situations are covered

Exclusions deserve particular attention. Many policies do not cover losses caused by gross negligence, improper securing of the load or choosing an unauthorised parking place. These conditions are worth discussing before signing the contract, so there are no surprises later when filing a claim.

Protection for a transport company usually consists of several elements. The fleet is covered by OCTA and KASKO, liability towards the client by a CMR policy, and the goods themselves by cargo insurance. Many companies also benefit from property or equipment cover for warehouses and handling machinery. Together these form a system in which every risk is included in some policy.

Another practical aspect is documentation. An accurately completed CMR consignment note, recorded conditions at pickup and delivery, and photographs in case of a dispute often determine how quickly and how fully a claim is paid. For companies running regular international routes, orderly paperwork is just as important as the policy itself.

Cargo carrier insurance isn't a single policy but a set of solutions that must be tailored to the specific company. An insurance broker can assess your routes, cargo types and contract terms, compare offers from insurers and help you build cover without gaps. Get in touch for a consultation today and protect your transport business.

Frequently Asked Questions

What is CMR insurance? It is carrier civil liability insurance that covers the amounts a carrier must pay for damage, loss or delayed delivery of cargo under the CMR Convention and the transport contract.
How does CMR differ from cargo insurance? CMR covers the liability of the carrier within the limits set by the convention, while cargo insurance covers the goods themselves regardless of whether the carrier is at fault. Expensive goods often need both.
Does KASKO cover the cargo carried by the vehicle? No. KASKO covers the vehicle itself, not the cargo. The goods require separate cargo insurance or a carrier liability policy.
Is CMR insurance mandatory? The liability itself arises from the convention and the contract, while the insurance is often required by clients or freight forwarders as a condition of cooperation. The exact requirements should be checked in each contract.
What should be done if cargo is damaged during transport? Record the damage in the CMR consignment note, take photographs and inform the insurer as soon as possible. Accurate documentation makes filing a claim considerably easier.