Mainfreight's Cargo Insurances

Insure your cargo to prevent a gap between the carriers liability and the actual value and unexpected costs.

Cargo Insurance

Mainfreight does everything possible to prevent or minimise damage. However, just as in everyday traffic, incidents can still occur during transport. To give you peace of mind, Mainfreight offers the option of additional insurance.
We work exclusively with dedicated carriers who uphold the same high-quality standards. Everyone involved strives to prevent irregularities. Still, it’s important to understand the legal framework in case something does go wrong.
For example, many people are unaware that a carrier’s liability does not cover all potential costs. In most cases, the carrier will rely on their maximum legal liability, which is usually calculated based on the gross weight of the damaged goods. As a result, the owner of the goods may face significant consequences, since only a portion of the material costs will be compensated—even when the carrier accepts liability.

In practice

1. During a flight from Taiwan to The Netherlands a shipment of 100 laptops with a value of 30.000,00 euro is fully damaged. Weight of this shipment is 300 KG. Liability from the carrier is a fact. The Montreal Convention applies to all air transports. This Convention has a maximum indemnification per kilogram gross weight of 26 SDR. The rate of SDR fluctuates and will be calculated by several factors. The maximum compensation in this case: 300 kg x € 30,00 (26 SDR) = € 9.000,00. In this case insurance premium would be € 73,13 + € 25,00 administration costs. Total costs for additional insurance would be € 98,13 and covers the complete gap of € 21.000,00.

2. During sea transport from The Netherlands to the USA, fire on the ship arises and your container including goods is completely lost. The value of the goods is € 50,000.00 and the weight is 3.200 kg. The Hague Visby Rules apply to transport by sea. Fire is an exclusion whereby the carrier cannot be held liable for the loss of the goods and no compensation will follow. Furthermore General Average will be invoked by the sea carrier to retrieve the costs for sharing any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole in an emergency. These costs will be divided over all cargo owners and must be paid in advance. The height of this amount is difficult to estimate but usually a percentage of 15% on the value of the goods is maintained. In this case insurance premium would be € 94,00 + € 25,00 administration costs. Total costs for additional insurance would be €119,00 and covers the complete gap of € 50.000,00 and the costs for General Average.

The solution

To prevent a gap between the carriers liability and the actual value and unexpected costs, Mainfreight can offer you a cargo insurance. This insurance is actually an extra service of Mainfreight and includes a payment/compensation based on the actual suffered material damage and takes care of everything.

Cargo Insurance Road Transport

Mainfreight's Cargo Insurances FAQ

Why should I insure my goods during transport?

If damage / loss occurs during transport, the carrier has limited liability. This applies to all carriers / forwarders and all modes of transport. The maximum liability is calculated based on the gross kilogram weight of the goods. This weight is multiplied by the applicable compensation in accordance with the amount and / or the conditions that apply to the transport route where the damage occurred. This may result in the owner of the goods not being fully compensated for the damage. Transport insurance does not look at liability but offers cover if the goods are damaged during transport.

What will be reimbursed in case of damage / loss?

In contrast to the limited liability of the carrier, this insurance reimburse the damage on the basis of the insured material value. In the event of a total loss, the insurance will reimburse the total insured value.

Can all goods be covered?

Not all goods can be covered. In some cases, extra additional requirements will be needed or the insurance will set additional conditions, such as an excess. You will always receive an answer in return from us upon your enquiry. If the goods cannot be covered in the usual way, we will look for a solution together.

Is consequential damage also compensated?

Damage other than direct damage to the goods themselves is also referred to as consequential damage and is not compensated. Only in the case of sea transport, costs resulting from general average are compensated.

Can I insure loss of profit due to damage?

This can be covered up to a maximum of 10% of the value of the goods in accordance with the commercial invoice.

What is general average?

General average is a risk that can arise during transport by sea. We speak of general average if damage to the ship or cargo is caused by an action that, in an emergency situation, aims to save the ship, the persons on board and (the rest of) the cargo. The resulting costs are divided between the owners of the ship and the cargo. The costs for such a rescue operation are generally quite high. You, as a party interested in the cargo, will receive a claim from the carrier as a guarantee for an amount to be paid later. This risk is covered by this insurance.

Need more information about our cargo insurances? Please get in touch with us. We're more than happy to support you!

Insurances and Legal Specialists
T: +31 (0)314 678 564
M: +31 (0)613 516 352
E: giel.terbeek@mainfreight.com