Does Cargo Insurance Cover Theft?

Cargo insurance can provide coverage for theft and other unexpected losses during transport. The amount of coverage offered varies depending on the type of policy purchased, so it is important to understand the specifics of each policy when selecting one. Here are a few things to know about cargo insurance that will help you determine if it covers theft:


Cargo insurance policies typically cover the replacement cost of goods stolen during transit. This means that the policyholder will receive funds to replace the stolen items at their current market value. Transit is considered any event where the goods are in transit from one point to another.


Coverage for theft can include any additional costs associated with the theft, such as loss of profits and other financial losses due to delays in delivery or unexpected expenses related to replacing the stolen cargo. Theft can also include instances where the goods were damaged or destroyed by thieves.


Cargo insurance policies also cover liability for theft. This means that if the cargo is stolen, the policyholder will not be held liable for any losses incurred by the shipper or other parties. When you are considering cargo insurance, it is important to make sure that your policy covers theft liability.

Documentation Requirements

When filing a claim for theft of cargo, it is important to provide documentation to prove that the cargo was stolen. This includes a police report of the theft, or other evidence that the goods were stolen and not otherwise damaged or lost in transit.


Cargo insurance policies typically include higher premiums than other types of insurance since they cover special circumstances such as theft. It is important to shop around for different providers and compare their coverage options, premiums, and deductibles to find the best policy that meets your needs.

Other Considerations

When selecting a cargo insurance policy, it is important to pay attention to additional coverage options such as liability for lost or damaged goods, covers against natural disasters and other risks related to international shipping. Understanding what is covered in each policy will help you make an informed decision when selecting the right policy for your needs.

Cargo insurance can provide much-needed peace of mind and coverage in the event of theft or other unexpected losses during transit, but it is important to understand what is covered by each policy to determine if it meets your needs. Knowing these few things about cargo insurance will ensure that you get the best policy for your situation.