Contracts often determine who is responsible for property in transit, but senders, or those actually transporting the property, are particularly vulnerable. This is because most forms of standard property insurance significantly limit or exclude coverage for property while in transit.
Businesses that transport property should consider separate insurance coverage, commonly called a cargo policy, for goods in transit. A cargo policy may cover risks such as fire, explosion, theft, delay, packing deficiencies, malicious damage and other risks common to property in transit.
Review existing and new contracts to determine insurance responsibility, and check your property insurance for information on coverage for property in transit. If coverage is inadequate or non-existent, consider purchasing a cargo policy to cover the gap.
Source: A.M. Best