Cargo insurance
Carrier’s liability insurance and additional cargo insurance are two different types of cover. Carrier’s liability insurance relates to our liability for the freight transport we organise, while additional cargo insurance is arranged separately for a specific consignment and a specific shipment.
Carrier’s liability insurance of UAB „Kauno logistikos agentūra“
The carrier’s liability of UAB „Kauno logistikos agentūra“ is insured with „SOMPO International Insurance Europe SA“, with the insurance administered through „Baltic Underwriting Agency“ (BUNDA).
This is our liability insurance as a carrier. It is not additional insurance of the cargo value and should not be confused with separately arranged insurance cover for a specific consignment.
You can find the carrier’s liability insurance certificate here.
Our carrier’s liability insurance broker is UADBB „Draudimo bitės“, a broker specialising in logistics. Claims are handled by their claims experts.
The importance of additional cargo insurance
We help arrange additional cargo insurance, which provides financial protection where the carrier’s liability limits under the CMR may be insufficient. The insurance cover, its limits and exclusions are always set out in the specific insurance policy.
Even when transport is organised responsibly, there is still a possibility that cargo may be damaged or even lost due to circumstances beyond our control. The carrier’s liability for the cargo entrusted to it for transport is limited – this is governed by international conventions, not by rules set by the transport companies themselves.
Under the CMR Convention as amended by the 1978 Protocol, the carrier’s liability limit is usually linked to 8.33 SDR per kilogram of the gross weight of the cargo. The SDR is a unit of account (Special Drawing Rights). The value of the SDR fluctuates, so the specific limit in euros depends on the applicable SDR rate, which you can find on the International Monetary Fund (IMF) website. Therefore, even when transport is reliably organised, additional cargo insurance can provide extra financial security in situations that cannot be foreseen in advance.
How do I insure my cargo?
You can order insurance together with transport – you do not need to contact an insurance company separately. When submitting a transport request, state that the cargo requires additional insurance. We particularly recommend assessing the need for insurance when transporting higher-value, fragile or hard-to-replace cargo, for which SDR-limited liability may not reflect its real value.
Once we receive the required details – route, nature of the cargo, weight, number of packages, value and planned loading date – we can obtain a preliminary quote for additional cargo insurance for the specific shipment. If you decide to insure the cargo, the insurance formalities must be agreed before the cargo is loaded.
The terms, insurer, limits of cover and exclusions of additional cargo insurance are set out in the specific insurance policy.
What does additional cargo insurance cover?
Additional cargo insurance can help compensate losses more broadly than the carrier’s limited liability under the CMR. Depending on the insurance cover chosen, the full value of the cargo or another agreed amount may be insured. Depending on the insurance option chosen, the policy may set a deductible, or cover without a deductible may be selected. The sum insured, territorial scope, exclusions, deductible and other terms are always specified in the specific insurance policy.
Contact us for a quote
Would you like to insure your cargo together with its transport? Email us at [email protected], call +370 37 454255 or fill in the request form – we will assess the value, nature and route of the cargo and propose a possible additional insurance option in accordance with the insurer’s terms.
If you are not sure whether insurance is needed at all for a particular consignment, simply describe the situation – we will help you assess the risk and decide before the final quote is confirmed.
FAQ
Who provides cargo insurance services?
Cargo insurance services are provided by insurance companies. KLA is not an insurance company – we help clients order additional cargo insurance together with transport, working with our insurance partners. Additional cargo insurance is not the same as our carrier’s liability insurance.
Are carrier’s liability insurance and additional cargo insurance the same thing?
No. Carrier’s liability insurance relates to the liability of UAB „Kauno logistikos agentūra“ for the transport in accordance with the insurance terms. Additional cargo insurance is separately arranged insurance cover for a specific consignment and a specific shipment. The terms, insurers and limits of cover of these two types of insurance must not be treated as the same.
Why insure cargo if the carrier is already liable for it?
The carrier’s liability under the CMR Convention is limited and may not cover the full value of the cargo. Additional cargo insurance may provide broader financial protection in accordance with the terms of the specific policy.
Is additional cargo insurance arranged separately for each shipment?
Yes. Additional cargo insurance does not automatically apply to all shipments. It is arranged for a specific consignment and a specific route, taking into account the value and nature of the cargo, the loading date, the route and the terms applied by the insurance company. The territorial scope, exclusions and limits of cover are always set out in the specific insurance policy.
How much does additional cargo insurance cost?
The price of cargo insurance depends on the value, nature and route of the cargo, so we provide an exact amount after assessing the specific request. We cannot quote a fixed rate without this information. The more information about the cargo you provide straight away, the sooner we can prepare an accurate quote.
Can additional cargo insurance apply to domestic and international shipments?
Additional cargo insurance may be considered for both domestic and international shipments; however, in each case the validity of the insurance depends on the specific cargo, the route, the insurance company’s terms and the exclusions set out in the policy.
Can cargo be insured when transported to or from Ukraine?
Our carrier’s liability insurance does not apply in the territory of Ukraine. The possibility of additional cargo insurance for this destination is agreed individually with the insurer, depending on the specific cargo and the insurance terms.
Does insurance cover apply on all routes?
Not all of them. Insurance cover may not apply in territories subject to international sanctions or where hostilities are taking place, or in other cases provided for in the insurance contract. In other countries, cover applies in accordance with the terms of the specific insurance contract and the exclusions set out in it. We can send you the insurance terms for a specific shipment before loading.
What information is needed for a cargo insurance quote?
To obtain an insurance quote, we usually need the route, the name or nature of the cargo, its weight, the number of packages, the value of the cargo and the planned loading date. The more accurate the information provided, the sooner an insurance quote can be obtained.