Insurance Guide
Freight Insurance for European Road Transport: CMR Liability vs Cargo Insurance 2026
Understand the difference between CMR carrier liability and separate cargo insurance. When you need freight insurance, what it covers, and how to claim.
1. CMR Liability Is Not Insurance
The CMR Convention provides a default carrier liability of 8.33 SDR per kilogram (approximately €10.16/kg in 2026). This is not insurance — it is a statutory liability cap. If your cargo is worth €50 per kilogram, the CMR only covers about 20% of the value. Many shippers mistakenly believe they are fully covered by the carrier. CMR liability only applies to loss or damage caused by the carrier during transport. It does not cover: acts of God, inherent vice of the goods, sender-caused defects, or circumstances the carrier could not avoid.
2. Types of Cargo Insurance
All-risks cargo insurance covers loss or damage from any cause not specifically excluded. Named-perils insurance covers only listed events (fire, collision, theft, overturning). Institute Cargo Clauses (ICC) set international standards: ICC(A) is all-risks, ICC(B) covers named perils plus washing overboard and earthquake, ICC(C) is the most restrictive. For European road freight, all-risks (ICC-A equivalent) is the standard recommendation. Premiums typically range from 0.15% to 0.5% of the declared goods value, depending on commodity type, route, and claims history.
3. When You Absolutely Need Cargo Insurance
Always insure when: (1) The goods value exceeds the CMR cap of 8.33 SDR/kg. For goods worth over €15/kg, CMR liability is insufficient. (2) The shipment is fragile, perishable, or high-value. (3) The shipment crosses non-EU borders where CMR enforcement varies. (4) You are responsible for the goods under your Incoterms (e.g. CIF, CIP, DDP). (5) Your customer requires proof of insurance. Even for lower-value goods, the cost of cargo insurance (0.2% of value) is trivial compared to the financial impact of a total loss.
4. How to Make a Freight Insurance Claim
Step 1: Note reservations on the CMR at delivery (for visible damage) or send written notice within 7 days (for concealed damage). Step 2: Photograph all damage and preserve packaging. Step 3: Notify your insurer within the policy timeframe (typically 3–5 business days). Step 4: Obtain a survey if the insurer requests one. Step 5: Compile the claim file: original CMR, commercial invoice, packing list, photos, survey report, and a statement of loss. Step 6: The insurer settles your claim and may subrogate against the carrier under CMR liability. Keep originals — insurers require original documentation for claims above certain thresholds.
Frequently Asked Questions
Is my cargo automatically insured during road transport in Europe?
No. The CMR Convention provides carrier liability of 8.33 SDR/kg (approximately €10.16/kg), but this is not insurance. It is a maximum liability cap that only applies when the carrier is at fault. For full value coverage, you need separate cargo insurance.
How much does freight insurance cost in Europe?
Cargo insurance for European road freight typically costs 0.15%–0.50% of the declared goods value, depending on commodity type, packaging, route, and claims history. For a €10,000 shipment, all-risks insurance costs approximately €15–50.
What is the difference between CMR liability and cargo insurance?
CMR liability is the carrier legally limited maximum they can pay for loss/damage (8.33 SDR/kg ≈ €10.16/kg). The carrier only pays if proven at fault. Cargo insurance is a separate policy bought by the shipper that covers the full goods value against all risks, regardless of who is at fault. The insurer pays you, then recovers from the carrier via subrogation.
Does Transroad offer cargo insurance?
Yes — Transroad offers optional all-risks cargo insurance on every shipment. Coverage can be added at booking for the declared goods value. Premiums are calculated per shipment based on commodity, value, and route. Claims are managed by our insurance partner with dedicated European freight experience.