The Importance of Transport Insurance: What Prime Logistics Wants You to Know

Omar Zambrano isn’t afraid to address the “biggest elephants” in the kingdom of freight. As On the contrary, as Chief Operating Officer of Prime Group, we often hear him referring to “disruptions” – their causes, their frequency, how to avoid them, and how best to ensure swift recovery – especially financially.

Most of us in the logistics industry know what disruptions are, but for the sake of those who don’t, the definition is pretty simple. According to Zambrano, who oversees the daily operation of Prime Logistics, “In the freight world, a ‘disruption’ is basically anything that gets in the way of getting cargo to its destination.”

There are many factors that can disrupt cargo transport, some of the most common include:


  • Weather-related disruptions: Extreme weather conditions such as hurricanes, tornadoes, snowstorms, and heavy rainfall can disrupt cargo transport by causing road closures, flight cancellations, and port closures.
  • Mechanical breakdowns: Equipment failures such as truck engine problems, airplane engine malfunctions, and vessel breakdowns can cause significant disruptions to cargo transport schedules.
  • Customs clearance delays: International shipments may be subject to delays in customs clearance, especially when there are issues with paperwork or compliance with regulations.
  • Labor disputes: Strikes, work stoppages, and labor disputes can cause cargo transport disruptions at ports, airports, and other transportation hubs.
  • Security-related disruptions: Cargo may be delayed or disrupted due to security measures such as increased screenings, inspections, and checkpoints.
  • Capacity constraints: Cargo transport capacity may be limited during peak periods or due to supply chain disruptions, resulting in delays and disruptions to cargo transport schedules.
  • Infrastructure disruptions: Road closures, bridge repairs, and other infrastructure disruptions can cause delays and disruptions to cargo transport, especially for trucking and rail transportation.


Sometimes, disruptions can even lead to serious disasters. Such was the case with the recent train derailment in East Palestine, Ohio, which in February of 2023, released hydrogen chloride and phosgene into the air. That’s an example of a transport mishap leading to environmental damage and a major threat to life – not to mention the catastrophic loss of the various goods and material onboard the cars that were lost in the crash.

“Overall, cargo transport disruptions can have significant financial and logistical impacts on businesses and supply chains, and it is important to have contingency plans in place to mitigate these risks,” says Zambrano. “But whether it’s nature or human error, there is hope.”

In order to provide both shippers, their clients, and even consumers some reassurance, she points to the numerous types of freight insurance, including cargo insurance, marine insurance, shipping insurance, transport insurance, and transit insurance.

Freight vs. Cargo Insurance

So what’s the difference between freight insurance and cargo insurance?

Put simply, freight insurance protects the freight forwarder or carrier who has a legal responsibility for the goods. In the event of a claim, the value is often calculated on the basis of weight. Cargo insurance is designed to protect the sender of the goods – the manufacturers, wholesalers, and retailers.

What is covered under freight insurance?

Insurance that generally protects shipments from loss, damage, or theft while in transit. This coverage is beyond basic claims insurance that may be provided, and it will reimburse the designated value of the goods if the covered event occurs while the freight is in transit

Is cargo insurance the same as marine insurance?

Cargo insurance is a subsection of marine insurance, and it is actually not just limited to marine freight. The protection it provides is against the loss or theft and damage caused through any road, rail, sea, or airport networks.

Who needs marine cargo insurance?

Any business that imports, exports, or manufactures goods is likely to have a need for marine cargo insurance as it goes above and beyond the coverage provided under goods in transit insurance.

What does cargo insurance not cover?

Cargo and freight insurance firms do not cover the loss of shipments that shippers could have control of. The restrictions specified by the insurer in the policy prevent any fraudulent claim. Most of the policies exclude certain scenarios, such as the damage of a shipment due to inappropriate packaging..

What is commercial cargo coverage?

Commercial Vehicle Cargo Insurance (sometimes referred to as Freight, Transport or Shipping insurance) protects the purchaser against the loss of freight. For example, Truck Cargo Insurance covers the freight (commodity) a commercial for-hire trucker hauls.

Who Pays for Cargo Insurance?

Usually, the party responsible for delivering the freight is responsible, whether they are the buyer or the seller. In many cases, goods will be insured when delivered by truck, but only at a marginal per-pound rate. It is often a good idea to buy additional coverage for truck shipments.

Where can cargo insurance be purchased?

Cargo insurance can be purchased from a variety of sources, including insurance brokers, insurance companies, and online insurance providers. Some logistics and transportation companies may also offer cargo insurance as an added service.

The Take-Away

In any event, and no matter what you’re shipping, or where, disruptions can occur. If they do, you want to be covered. Have the peace of mind with our insurance service, offered in partnership with Prime Logistics. We understand the importance of protecting your precious cargo during transit, so we proudly offer comprehensive cargo insurance for all your logistics needs. We offer cargo insurance for sea, rail, air, and road freight.



About Prime Logistics Group

One of four divisions of Prime Group, an international logistics services conglomerate founded in Ecuador in 2001, Prime Logistics serves to streamline, optimize, and expedite freight to and from the U.S. for a wide range of major industries.

With offices in Miami, New York, Los Angeles, Bogota, Quito, and Amsterdam, Prime Logistics capitalizes on its long-time relationships with the major air carriers, ocean lines, and truckers to offer competitive rates in securing ample space to destinations all around the world.

For general information, call 305-592-2044 or visit


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