Find out everything about cargo transport insurance

If you work as a truck driver, you must understand the importance of having cargo transport insurance. Follow this article and discover all the most important information about this insurance.

Cargo transportation insurance has become a fundamental service nowadays. After all, in recent years the rates of robbery and cargo theft have risen considerably. According to a survey carried out by NTC & Logística – National Association of Cargo Transport and Logistics, in the last four years alone this problem has grown by 49% in the country.

The losses caused by this category of crime exceed R$1.5 billion, and the only way to avoid such losses is to have insurance for cargo transportation. Thinking about helping to prevent such losses, we created this article to explain all the important information about this type of insurance, follow along.

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What is cargo transport insurance and how does it work?

Insurance for cargo transportation, as the name suggests, is a safeguard service contracted especially to protect items in transit driven by truck drivers. Its validity is restricted to the transportation period and can be subdivided into two main categories: one aimed at moving the cargo, normally acquired by the entity responsible for selling the products, whether in purchase or sale. The other category, covering third parties, known as civil liability, can be contracted by the truck driver himself or by the agent responsible for the transport.

The type of insurance for cargo transport, which aims to protect only the cargo, offers two variations of coverage: national and international. On the other hand, the civil liability category presents a diverse range of coverage, designed to protect the cargo driver in cases of unforeseen events during transport, in which he is responsible for paying the compensation.

It is worth mentioning that insurance for cargo transport, aimed exclusively at protecting merchandise, in addition to being applicable to national or international transport, can be adapted to any type of transport, not limited only to land, but also to air, rail and maritime.

Insurance policies for cargo transportation are commonly called “against all risks” or, in English, “all risks”. However, as with other types of insurance, these policies have specific excluded risks. Therefore, it is crucial to be attentive during the service contracting process.

Who is eligible to take out cargo transport insurance?

The two categories of cargo transport insurance have different protection purposes and, therefore, are generally contracted by different parties.

The first category, which aims to protect products in transit, is directly related to the marketing of cargo. Therefore, those responsible for contracting it are generally the seller or buyer of the items to be transported. This is due to the role of this insurance in preventing losses resulting from accidents, damage to cargo or theft.

On the other hand, the coverage known as civil liability guarantees the protection of the person responsible for transporting the goods. In the event of accidents or eventualities that result in damage to the cargo, the person responsible can count on insurance to cover the expenses, as long as it is proven that such damage was their responsibility.

Find out more about the classes of insurance for cargo transport!

Insurance for cargo transportation, focused exclusively on cargo protection, has two main categories: national coverage and international coverage. See below how each of them works:

National insurance coverage for cargo transport

This service can be contracted through individual policies, which only cover a specific route, or through open policies, which are valid for trips involving multiple routes, as long as each of them is specified individually.

Insurance for cargo transportation with national coverage can be purchased either by the owner of the vehicle that will carry out the transport or by a person who hires a company or professional to carry it out.

In addition to covering any type of travel, regardless of the means used, this coverage covers situations such as cargo theft and loss.

International insurance coverage for cargo transport

This category is intended for products intended for export or import and must be contracted during purchase and sale negotiations, considering the risks involved in transportation.

Insurance for cargo transportation with international coverage focuses on protecting the product in transit, covering the entire route, from departure to the final destination.

Insurance for transporting civil liability cargo: operation and modalities!

This type of insurance is mandatory and applies to land, water and air transport, offering compensation for damage to cargo caused by third parties. In other words, it is protection for the cargo that must be contracted by the person responsible for transport, with the aim of providing compensation if the vehicle driver causes an accident or damage to the transported cargo.

Civil liability cargo transportation insurance has five types of coverage:

1 – RCTR-C – Road Cargo Carrier Civil Liability Insurance

This coverage protects drivers responsible for land transport, and guarantees compensation if the driver is forced to bear any damage caused to the cargo during the trip.

In other words, if any type of transport accident occurs, be it a collision, a fire, a tip over, etc., and the cargo suffers damage, the driver will be free from bearing the losses.

2 – RCTA-C – Civil Liability of the Air Cargo Carrier

As the name suggests, this insurance guarantees the protection of those responsible for air transportation of the cargo in question. And it is related to possible problems that may occur during this category of movement and cause damage to the transported product.

3 – RCA-C – Shipowner’s Civil Liability – Cargo

This coverage is aimed at those responsible for water transport, whether river, sea or lake. It also offers the certainty of compensation if any damage is caused to the cargo during transportation and can cover both national and international trips.

4 – RCTR-VI – Carrier’s Civil Liability Insurance for International Travel

This insurance applies to all transport carried out by Mercosur countries – Brazil, Paraguay, Argentina and Uruguay, providing protection from the transport shipping address to the destination address.

5 – RCF-DC – Optional Civil Liability of the Road Carrier for Disappearance of Cargo

This insurance aims to protect against theft. Whether they occur due to threat or violence, or so-called 'disappearances', when the means of transport is taken with the cargo inside.