You’ve transported a shipment of expensive industrial components to a customer in another country. The components are carefully sealed to prevent moisture, dust, and damage. These items are then put into cartons, which are securely affixed to pallets before being loaded into the final cargo container.

You relax as the container leaves your port and travels until you turn on the TV and learn about a terrible storm on the path your cargo is on. And now you’re concerned: Is your shipment truly safe? Are you on the verge of a loss?

Logistics businesses in Dubai take every measure to load your cargo shipments safely and securely while aboard and in transit. However, there is always the possibility that your goods may be destroyed due to severe weather, accidents, or other unfavorable circumstances. While logistics providers in Dubai provide enough coverage, it is best to be double-protected with supplementary cargo insurance to mitigate damages.

Cargo insurance may be obtained depending on a variety of factors, including the kind of cargo being delivered, the amount, value, perishability, and so on, as well as the method of transit, i.e., land, sea, or air.


Cargo insurance comes in a variety of forms, each with its own set of coverages and limits. For clarity, we shall discuss insurance in terms of multiple types of shipping.

Insurance coverage will differ depending on the form of transport, the type and value of the products being delivered, as well as the origin, destination, and route.


This is for land-based freight. Trucks or any other road or rail vehicle used to convey goods inside the UAE or throughout the GCC area (where permitted) may be utilized as modes of shipping. Land cargo insurance generally covers losses due to collisions, road accidents, vehicle flipping, and theft.

Depending on the nature of the commodities, extra coverage may be necessary to cover the loss of perishable items due to faulty refrigeration or heating systems, as well as wear and tear from transportation.


This is for seaborne freight. Ships go to and from overseas regions, including Dubai and the UAE. The standard coverage of marine cargo insurance covers loss or damage due to loading and unloading, piracy, severe weather, or other mishaps when the shipment is at sea while in the logistics company’s ownership.

Similarly to land cargo insurance, particular extra coverage for perishable, delicate, explosive, or hazardous cargo may (and should) be added based on the value and nature of the products.


This is applicable to air freight shipments. Regular flights or specialized cargo planes are used for transportation. Air Cargo Insurance protects against loss or damage caused by loading and unloading, air turbulence, inclement weather, or other mishaps while the cargo is being carried or in the ownership of the logistics business.

In general, air cargo insurance plans will need additional riders or coverage for hazardous, perishable, or fragile commodities.

Types of Insurance Coverage

There are three major forms of insurance policy coverage, which differ depending on the premium and coverage provided. While All Risk and Named Perils coverage are applicable to all means of shipment or transit, General Average coverage is only applicable to maritime transportation.


All-Risk Coverage is a wide insurance policy that covers the most common causes of cargo loss or damage, such as negligence or defective packing, cargo capture, customs objections, and labor dishonesty.

All Risk Coverage, contrary to its name, excludes the following:

  • Shipping carelessness or negligence
  • Inherent vice: when the cargo is harmed or the quality deteriorates as a result of environmental conditions
  • Abandonment of cargo or freight
  • Customs refusal
  • WSRCC stands for war, strikes, riots, and civil commotions.
  • Failure to collect or nonpayment
  • Other examples of force majeure include earthquakes, war, pollution, infestation, and so forth.


Named Perils (or Free of Particular Average) coverage covers losses caused by precisely listed situations, such as:

  • Collision, sinking, or derailment of a vessel
  • Severe weather and an earthquake
  • Non-delivery owing to special circumstances
  • For example, a fire or theft


When at sea in an emergency, the ship might dump cargo to save lives and minimize loss or damage to remaining supplies. According to the law, all parties who had a financial stake in the trip must share the loss in this case fairly.

This implies that all cargo owners whose goods are being carried on a vessel that has suffered damage while at sea will share the losses generated by the damage to their cargo. This may often force cargo owners who have experienced little or minor damage to reimburse other cargo owners whose shipments were damaged or lost.

Insurance coverage for general average losses is not standard and must be specifically specified. It is strongly advised that all cargo owners have general average coverage since the financial damages under general average in the case of an emergency may sometimes be more than the financial worth of their real cargo.

Get Your Cargo Insured

The cost of cargo insurance is determined by the kind of coverage, shipment value, nature of the products, origin and destination, and method of transportation. Choose the correct insurance coverage to reduce the risk of cargo loss or damage and offer peace of mind.

Consult a reputable logistics firm in Dubai to choose the appropriate insurance policy and coverage for your cargo shipments to and from the UAE.

By Admin

Leave a Reply

Your email address will not be published. Required fields are marked *