Many importers assume the carrier will fully compensate them if an order arrives damaged. In practice, carrier liability is capped by international conventions and the bill of lading terms, and it can be far below the value of the goods. That is where cargo insurance for argan oil shipments comes in: a separate contract that protects your capital against transport accidents. This article explains who is responsible for insuring, what a policy covers and excludes, and what to do before and after shipping.
Why carrier liability is not enough
Sea and air carriers are liable for goods while in their custody, but liability is usually limited per package or per kilo and subject to exemptions. At sea, general average can also require you to contribute to the cost of saving the vessel even if your cartons arrive intact. Insurance covers the value of the goods under the policy terms, which carrier liability does not. Glass argan oil bottles are prone to breakage and leaks, so it is worth thinking this through before the container is loaded.
Who insures? The Incoterm decides
| Incoterm | Who insures? | Practical note |
|---|---|---|
| EXW / FCA / FOB | Seller has no obligation; buyer insures if desired | Risk passes to you early, so cover must start then |
| CIF | Seller, at a minimum level (ICC C under Incoterms 2020) | Minimal cover; consider upgrading to ICC (A) |
| CIP | Seller, with ICC (A) under Incoterms 2020 | Make sure you are the beneficiary |
| DAP / DDP | No contractual duty, but the seller bears risk until delivery | Ask whether they insure their own risk |
Even when the contract says the seller insures, read the policy itself: the contractual minimum may not suit glass goods.
ICC (A), (B) and (C) clauses
- ICC (A): all risks unless expressly excluded. Usually the best fit for fragile goods.
- ICC (B): named risks such as fire, stranding and packages lost overboard.
- ICC (C): the narrowest, covering major casualties only.
Breakage from rough handling at discharge may fall outside (B) and (C), while (A) generally covers it when the cause is external and not inadequate packing. Ask for the full wording, not a marketing summary.
What is usually not covered
- Insufficient packing: review our glass shipment packing guide before loading.
- Inherent vice, such as oxidation caused by the product itself.
- Delay and its commercial consequences.
- Ordinary leakage and normal loss in weight or volume.
- Loss of market.
- War and strikes, which usually require additional clauses.
Setting the insured value
Common practice is to insure the CIF value plus about 10 percent, i.e. 110 percent, which is the minimum Incoterms set for CIF and CIP. The premium depends on the goods, route, terms and your history, so no single figure can be quoted. Ask a broker or your forwarder for a written offer.
Practical steps before shipping
- Fix the Incoterm in the quotation and identify where risk transfers. Include the premium in your landed cost.
- Request the policy wording and check for warehouse-to-warehouse cover.
- Be named as beneficiary, with names matching the commercial invoice.
- If paying by letter of credit, check the bank's insurance requirements.
- Choose between per-shipment cover and an open cover if you ship regularly.
- Document condition before departure, as described in our pre-shipment approval guide.
The claim file
- Write specific remarks on the delivery receipt before signing.
- Notify the insurer and carrier in writing within the deadlines.
- Keep damaged packaging until a surveyor inspects.
- Gather the policy, invoice, packing list, bill of lading or air waybill, photos and survey report.
For more detail see our article on claims for delayed or damaged shipments.
FAQ
Is cargo insurance mandatory?
Rarely by law, but a contract, bank or letter of credit may require it, and it is advisable for valuable glass goods.
Does it cover delays?
Normally not. It has to be negotiated in the contract.
Are broken bottles compensated if packing was weak?
The claim may be refused if the insurer finds packing inadequate, so good packing is a condition of a successful claim.
Is the seller's CIF insurance enough?
It is a minimum. Ask for ICC (A) for glass or top it up yourself.
Conclusion
Decide on insurance before shipping: Incoterm, coverage, and a premium built into landed cost. For a quotation with clear delivery terms, request a quote from Assil Ouargane.
