Is it necessary to insure cargo, if the liability of the carrier/forwarder is already insured?

This question is quite important for many owners of goods, who wish to save some money on insurance. The issue is that when comparing carrier/forwarder liability insurance terms with the terms of cargo insurance, a false impression may be given that if the liability of the carrier/forwarder is insured, the cargo owner will receive insurance compensation in any case. Naturally a question arises: is it necessary to insure cargo in addition?

In fact these are two absolutely different types of insurance with different insurance object and different conditions.

First of all, the carrier/forwarder will be obliged to compensate for damage only if his liability has occurred (in accordance with current legislation). So, for example, in case of accident by the guilt of third party, no liability to pay insurance compensation to the cargo owner arises.

The carrier/forwarder is also not liable before the cargo owner for losses as a result of natural disasters and force-majeure circumstances, and in case of theft of damage of the goods as a result of unlawful actions of third parties, insurance compensation is paid only if the guilt of the carrier/forwarder is proved (most often by court decision).

The carrier’s/forwarder’s liability insurance should be deemed as just an additional guarantee of paying ability of the carrier/forwarder. Only cargo insurance may guarantee maximum insurance cover against damage, loss or theft of the goods.