Cargo Coverage and Claims



Cargo claims represent one of the largest categories of property and liability claims both in number and value. The diversity of these types of claims makes their successful handling dependent upon professionals with particular skills and experience. Efficient handling of cargo claims requires knowledge about the different types of carriers, knowledge of operational procedures, logistics, cargo types, and contracts. The claims person needs to have a basic understanding of such things as how a reefer container works as well as different, but equally important, carriage method issues that may arise in the successful resolution of a claim. Examples of cargo claims leave no doubt in one’s mind that protection through freight insurance is essential to all stakeholders.

 This course is now available to all ILScorp General or Adjuster CE Subscribers.

Included as part of the ILScorp General CE Subscription.
Included as part of the ILScorp Adjuster CE Subscription.

Credit Hours: 1

Credit Type: General/Adjuster – Technical and RIBO – Technical

Credit #: AIC#59899 MB38695

Accrediting Provinces:


The purpose of this course is to prepare the participant to competently handle the discussion of cargo coverage and its important benefits, as well as to explain and assist in the claims process.

Course Content

This course covers the following topics:

  • Statistics describing the amount of goods and money involved with the movement of products between locations
  • The features of cargo coverage
  • The purpose of cargo coverage
  • Types of cargo coverage
  • Different factors relating to various methods of transport by land, sea and air
    Forms of contracts
  • Responsibilities of carriers throughout the handing, transporting, and delivery
  • Areas of knowledge important in handling of claims
  • Types of cargo damage
  • Causes of cargo damage
    Prevention of cargo damage
  • Essential actions and practices when loss or damage is reported
  • Benefits of cargo coverage
  • Types of freight claims
  • Use of technology and documentation in the delivery of goods
  • Use of technology and documentation in the claims process
  • Types of specialized assessment reports (such as temperature monitoring reports)
  • Terminology and vocabulary relating to claims
  • Examples of weather events responsible for cargo loss and damage
  • Cargo claims examples
  • Use of technology in protection of goods in transit
  • Time limitations on claims

Course Learning Objectives

Successful participants of this course will:

  • Be aware of the magnitude of the freight industry operating across the globe
  • Be able to supply statistics to demonstrate the importance of this industry
  • Be aware of the financial losses experienced by stakeholders in the industry and in related businesses that depend on the delivery of goods
  • Understand the basic purpose and function of cargo insurance
  • Know both the damage and the liability aspects of cargo coverage
  • Be familiar with the different types of cargo insurance policies available for transporting goods by land, sea, and air
  • Be familiar with the six responsibilities of the carrier
  • Know the types of damage that can occur including: physical damage, wet damage, contamination, and infestation
  • Know the potential causes of damage
  • Have a basic understanding of how a reefer container works in order to form a qualified opinion as to whether a carrier can be held liable for deterioration of perishable goods
  • Be familiar with the measures for prevention of damage
  • Know what the insured needs to do after a loss in transit
  • Be able to demonstrate the benefits of cargo coverage
  • Be aware of the types of freight claims
  • Know what to advise the carrier to do when a loss occurs
  • Know the importance and purpose of Bills of Lading
  • Be able to discuss the completion of a Statement of Claim
  • Understand the importance of value verification evidence and photos
  • Be familiar with the types of reports that may be part of the claims process e.g.,
    quality assessment report, temperature monitoring report, police or accident report, repair quote, proof of disposal
  • Be able to provide examples of events that led to significant cargo claims
  • Be able to refer to examples of claims
  • Be able to discuss practices and precautions that help reduce the risk of loss through theft
  • Know the protection provided by hard security devices such as high-security door locks
  • Be familiar with the use of technology and documentation in prevention of loss and in the claims process
  • Be aware of the general time limitations associated with cargo claims

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