Cargo Insurance

Cargo Insurance

Protect the product shipments to your customers with comprehensive coverage for goods in transit.

Zensurance - Cargo Insurance

Partnerships with over 50 leading Canadian insurance providers

Partnerships with over 50 leading Canadian insurance providers

Why Choose Zensurance?

We help Canadian business owners save time and money by providing
a convenient and affordable way to buy business insurance.

Claims Examples


Problem: The computer tablet device you shipped by land to a customer arrives with a smashed screen and is unusable.

Outcome: Your cargo insurance policy may pay to replace the destroyed computer tablet.


Problem: While your products are stored temporarily in a third-party warehouse by your freight provider en route to a customer, the warehouse catches fire and burns to the ground. Your products are destroyed.

Outcome: Your cargo insurance policy may cover the cost of the destroyed goods.


Problem: The expensive machinery parts you manufactured and shipped by rail to a partner are a total loss after the train carrying your goods derails.

Outcome: Your cargo insurance policy may pay for the cost of the damaged shipment.

Cargo Insurance, Explained.

What is cargo insurance?

Cargo insurance protects businesses from physical loss, theft, or damage liability for the goods they ship to customers by land, air, sea, and across provincial or international borders. It is a policy that contains different types of coverages to provide comprehensive protection of the value of goods throughout the transportation cycle. Coverage may range from all-risks to named perils, depending on the amount of customization you require.

What does it cover?

Cargo insurance provides financial support for the items or products you ship to customers whether they are in transit or held in storage at a freight provider’s location. It typically provides coverage for damage or loss resulting from a natural disaster, fire, flood, riots and wars, theft and vandalism, customs rejections, vehicle-related accidents, and piracy.

How much does cargo insurance cost?

The cost of a cargo insurance policy varies by business. These are the factors insurance providers consider when pricing your policy:  

  • The type of business you have and the industry you’re in
  • The type of products you ship and how often
  • What your business’s location is
  • Your annual and projected revenue
  • Your years of experience
  • Your insurance claim history

What is not covered?

Most cargo insurance policies exclude the following:

  • Damage resulting from inadequate packaging. If the product you shipped was not packaged sufficiently to protect it from handling and shipping, a claim may be rejected.
  • Damage because of a defective product. If an insurer can prove you shipped a product that is defective and does not function as it should, a claim may be rejected.
  • Certain modes of transportation. Depending on the type of policy you have, some policies may not provide coverage for products shipped on some forms of transportation.
  • Hazardous or extremely fragile materials. Some policies will not cover you to ship hazardous materials or chemicals or products that are highly fragile or valuable.

Who needs cargo insurance?

A comprehensive cargo insurance policy is a must-have for any business when transporting goods to any destination and by any method. In addition to protecting your goods after they leave your possession, cargo insurance also serves to protect the relationships you have with customers, suppliers, and partners.

What is the difference between cargo insurance and inland marine insurance?

Cargo insurance covers your product shipments over land, air, sea, and while temporarily stored by a third party, such as a courier or freight company. Inland marine insurance covers products that are only transported by land, including truck, car, or train but not over water.

Frequently asked questions

What does ‘general average’ mean when shipping products?

The general average is an internationally recognized maritime law that states all parties share the costs of damage or loss to shipments made by sea if the ship carrying your cargo must voluntarily sacrifice the cargo or a portion of the vessel because of an emergency. For instance, if your freight is on a ship that is sinking at sea and the crew intentionally jettison its cargo to save the ship, the cost of the lost goods is shared equally by the cargo owners, the transportation company, and the owners of the ship.

What are the different types of cargo insurance?

There are three main kinds of cargo insurance: open cargo insurance, specific or single cargo insurance, and contingent cargo insurance. Open cargo insurance covers your shipments for a specific time period and allows for multiple shipments during that time. Specific or single cargo insurance is ideal for businesses that ship infrequently, as it covers you on a per shipment basis. Contingent cargo insurance is broad and is usually purchased by freight brokers – individuals or organizations that are transportation intermediaries.

Do I still need cargo insurance if the courier or shipping company offers it?

Yes. It is advisable to have a cargo insurance policy even if the courier or freight service you use offers coverage for your shipments. The amount of coverage the shipping company offers may not be sufficient to cover any losses or damages you suffer.

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Ready to start? Let’s get a quote!

Protect your freight from gate to gate with a customized cargo insurance policy from Zensurance. 

Fill out an online application to get a free quote. Our licensed brokers will shop our partner network of over 50 insurance providers to find the coverage you need at an affordable price.