The cargo insurance policy is specially designed insurance cover for goods in transit. It offers coverage to freight against all types of losses or damages from external causes during transportation whether by land, sea, or rail.
Usually, cargo insurance policies are freely assignable. However, in the case of insured goods being personal belongings of a person, policies cannot be assigned.
The principles and experience of Marine Insurance drive cargo insurance policies, and thus, they are also called marine cargo insurance. Cargo insurance policies for land transportation are slightly different from their ocean/river counterparts.
The cargo insurance policies for land transport are called inland transit insurance policies. The second greatest difference between inland transit and marine cargo will be the crossing of international borders which is more likely in marine policies. First difference being the land and water transport systems covered.