Many buyers assume that if a truck is in an accident or a load is stolen, “the carrier pays”. Under the CMR Convention the carrier often does pay — but only up to a limit set by weight, not by value, and only when none of the Convention’s exemptions applies. For light, valuable FMCG lines such as spirits, cosmetics or confectionery, that limit can be a fraction of what the goods cost you. Cargo insurance is how buyers close the gap.
General guidance, not legal or insurance advice. What you are covered for depends on the wording of your own policy, the contract of carriage and the law that applies. Ask an insurance broker or your insurer to confirm cover before you rely on it.
On international road journeys the CMR Convention makes the carrier liable for loss of or damage to the goods between taking them over and delivering them. Three features limit how far that protects you:
Because the cap is per kilogram, the gap depends on how valuable your goods are for their weight. These are illustrative figures only:
| Pallet (illustrative) | Gross weight | Goods value | CMR cap (approx.) |
|---|---|---|---|
| Bottled water | ~900 kg | a few hundred euros | well above the value |
| Soft drinks in cans | ~750 kg | ~€1,500–3,000 | above the value |
| Spirits | ~700 kg | often €10,000+ | ~€7,000 — a gap |
| Cosmetics or fragrance | ~400 kg | often €15,000+ | ~€4,000 — a large gap |
Heavy, low-value goods are largely protected by the carrier’s liability. Light, high-value goods are not — and they are also the loads most attractive to thieves.
Hauliers carry liability insurance, and a carrier may tell you the load is “insured”. That policy protects the carrier against its legal liability, so it pays only what the carrier owes you under the CMR — within the cap and subject to the same exemptions. Cargo insurance protects the owner of the goods for their insured value, whether or not the carrier is liable. The insurer then pursues the carrier itself.
International cargo policies are commonly written on the Institute Cargo Clauses, or on an insurer’s own conditions modelled on them:
Even all-risks cover has standard exclusions: insufficient packing, ordinary leakage or wear, inherent vice, delay, and loss caused by the insured’s own wilful misconduct. War and strike risks are covered by separate clauses. For chilled or frozen goods, ask specifically whether breakdown of the refrigeration unit is covered — see our guide to temperature-controlled transport.
Whoever bears the risk while the goods are on the road has the reason to insure them. Under EXW and FCA that is usually the buyer from the moment of handover; under DAP and DDP it is the seller until delivery. Only two Incoterms 2020 rules oblige the seller to buy insurance for the buyer: CIF (minimum cover under ICC (C)) and CIP (ICC (A)), in both cases for at least 110% of the contract value. If you buy on CIF, check whether that minimum cover is enough for your goods. Our Incoterms guide for FMCG buyers explains where risk passes under each rule.
Notify the insurer and the carrier immediately, write precise reservations on the consignment note, photograph the load before it is moved, and keep the damaged goods until the insurer says they can be disposed of. Hold the carrier liable in writing within the CMR deadlines so the insurer can recover from it. Shortages and damage are far easier to prove when the order was checked and documented before it left — the EU export documents checklist covers the paperwork that travels with the load.
If you want to quote on terms where the seller arranges carriage or insurance, or your insurer needs particular information about the load such as gross weights, packing or loading details, tell us what you need in the enquiry and we will confirm in writing what we can provide.
Related reading: Incoterms 2020 for FMCG buyers, pallet and truckload maths, and how excise duty suspension works for beer and spirits.
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