Carrier Liability vs. All-Risk Cargo Insurance: Is Your Shipment Covered?

Written by Marek Zbyszewski
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This week our guest blog is from Expeditors Cargo Insurance Brokers (ECIB). ECIB provides supply chain risk management solutions tailored to the specific needs of their clients. Through their background in logistics and hands-on approach to claim subrogation provide access to lower rates and broader coverage. ECIB is a wholly owned subsidiary of Expeditors International of Washington, Inc. They are headquartered in Seattle, Washington, with employees located throughout the U.S., Mexico, Europe, Australia, and the Middle East.

How much would you expect to recover if your shipment is lost or damaged? The difference between a carrier liability payment and all-risk cargo insurance coverage might just surprise you. Understanding this critical difference will help you make the right decisions to eliminate risk for your organization's supply chain.

With that in mind, let's get into the details. 


When goods in transit are lost or damaged, the owner of the goods has the right to file a claim to recover money from the carrier. However, carriers are required to pay only if they are proven to be responsible for causing the loss. The amount of the carrier’s liability is limited to a calculation based on the weight or shipping unit of the shipment, not the actual value of the goods.*

Table 1 Update 4


“All Risk” insurance is the broadest, most comprehensive form of coverage for cargo. All-Risk coverage insures general merchandise against risks of physical loss or damage from any external cause, subject to policy terms, conditions, and exclusions.  The cargo is insured based on its value without respect to weight or piece count, and can be applied for door-to-door coverage.**


With standard carrier liability only, the maximum the carrier will pay is limited to the amounts below. With all-risk cargo insurance, the complete value of the shipment is covered, regardless of mode.**

Shipment details: One carton, 100 lbs (45kg), $10,000 value.

Table 2 Update 3

Even if a carrier is at fault for damaging a shipment, the goods may not be fully protected at their commercial value. All-Risk cargo insurance puts that worry to rest and ensures your business is protected from unexpected damages or losses.

Contact an ECIB or Expeditors representative today to learn more about the exceptional value of all-risk cargo insurance. 

*Carrier liability is determined by international conventions, treaties, and other domestic & international governing bodies.

**Rates may vary. Contact your local Expeditors representative for more information.



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Blog was originally posted on October 23, 2019 1 PM

Topics: Insurance, ECIB, Cargo Claims

Marek Zbyszewski

Written by Marek Zbyszewski

Marek has been with Expeditors since 2007 and currently manages the brokered cargo policy accounts at ECIB, Expeditors’ wholly-owned supply chain risk and insurance subsidiary. His previous roles include corporate sales operations and development for Expeditors’ Corporate Risk Management group, managing the Customs surety bond program for the US and Canada, and various operational and leadership roles in the Customs brokerage department at Expeditors’ Seattle branch office.

4 minute read