Cargo Insurance FAQs

DHL Global Forwarding offers insurance for cargo during the course of transit while the shipment is under its control. When a customer chooses to purchase this service, they pay DHL Global Forwarding a premium. This premium or the price of the insurance depends on the type and value of goods transported, as well as the origin and destination. There is no further deductible or excess that a customer has to pay, regardless of the value of the damage or loss.

In exchange for the premium paid, the customer benefits from ‘all risk’ insurance. This means it covers any physical loss or damage arising from external causes for example vehicle crash, theft or natural disaster. The coverage is broader than the industry standard and in case of an accident customers receive the full declared value of their goods, the related transportation charges and additional 10% of goods value and freight charges (it is a standard practice in the insurance industry to add 10% to reflect the true replacement value of the goods, estimated at a total of 110%). There are a few standard exclusions applicable (e.g. insurance does not cover delays).

DGF customers greatly benefit by having cargo insurance because it gives them peace of mind and mitigates the risk faced by their business. Standard terms & conditions offer limited protection for the cargo in case of loss or damage.

• During transportation, goods can get damaged or lost for variety of reasons
• If something does happen to the cargo, there are two options:
  • It is not due to the freight forwarder, in which case customers do not receive any compensation for the loss or damage
  • It is due to the freight forwarder, in which case forwarders do have liability but it is limited by standard terms and conditions and does not cover the full value of the goods transported
• For example, for shipments by air, the forwarder has to pay 17 SDR per kilo of cargo (1SDR approx 1EUR) (Warsaw Convention)
• For shipments by ocean to and from US and Canada, the compensation is US$/ CAN$ 500 per package or, for goods not shipped in packages, per customary freight unit (Carriage of Goods by Sea Act COGSA, COGWA); for all other shipments Hague-Visby Rules apply: SDR2/ KG or SDR 666.67/ package, whichever is higher. The definition of package is defined in the bill of lading.

It is in the best interest of the shipper to buy cargo insurance that guarantees full value coverage beyond liability.

• For the customer, cargo insurance is about having peace of mind and mitigating the possible financial losses to their business
• The customer can purchase cargo insurance in many ways, one of them is via its forwarder/ transport provider
• DGF has a cargo insurance product, which is called CARGO INSURANCE and covers physical loss or damage during the transportation of a customer’s shipment, the cost of transportation proportional to the damage or loss and additional 10% of costs

In general, all commodities that are transported via DGF can be insured via DHL CARGO INSURANCE. However, shipments with commodity value in excess of 350,000 Euro need approval from GBS Risk Management before being insured. There are as well several further commodities where GBS Risk Management should be contacted before the cargo can be insured.

Our Cargo Insurance covers all countries except very few origin and destinations. The service can be currently sold in 41 countries. You can find whether your country is currently covered by the program by following the links via the main Cargo Insurance page. In case your country is not listed but you are interested in offering the service, you can find more details of how to offer Cargo Insurance in your country through the contact form on the main Cargo Insurance page.

• Peace of mind
  • Limiting financial exposure due to damage or loss of a shipment, particularly important for customers shipping valuable goods
  • Broad all-risk coverage (above industry standard)
• Easy to handle
  • One stop shop for transportation and insurance
  • Anything related to transport with DHL including the claim can be submitted directly to DHL
  • No paper work needs to be done by the customer – DHL handles it all!
• Competitive and easy to understand premiums (rates)
  • No additional deductibles – customer pays premium only (differentiator from industry standard)
  • Possibility of tailor made rates, based on risk profile of shipments – individual and multiple shipments
  • Insurance premium directly related to value of goods sent
• Efficient claims handling
  • Prompt claims handling and resolution
  • Good customer service following loss/ damage with claims handled within up to 30 days