Cargo transportation insurance is essential for businesses engaging in international trade, especially those shipping large quantities of goods by boat. Specific terms and benefits vary widely across the world and many cargo transportation insurance policies are custom tailored for specific shipments, but a few general principles apply to the entire industry.
Different types of cargo transportation insurance. Different types of cargo transportation insurance exist. There are, as a general rule, three types of cargo transportation insurance to choose from. 1. FPA (free of particular average), also known as total loss coverage. This is the minimum coverage in general use. It covers losses due to a ship or aircraft being totally lost. Partial loss is not covered, except to a limited extent and in particular circumstances. Which partial losses are covered and under what conditions vary according to national practice.