Who is responsible for shipping insurance?
Generally, the seller is the one who purchases the insurance for the shipments since they are the ones who are responsible for the product until delivery and will incur monetary losses if anything goes away.
How does cargo insurance work?
Cargo insurance protects you from financial loss due to damaged or lost cargo. It pays you the amount you’re insured for if a covered event happens to your freight. And these covered events are usually natural disasters, vehicle accidents, cargo abandonment, customs rejection, acts of war, and piracy.
Who is liable for cargo damage?
If the shipper can prove that a carrier received the goods in an undamaged state and delivered them damaged or lost, the carrier will be liable unless one of the five exclusions to carrier liability exist and the carrier was not negligent.