Understanding Air Cargo Insurance Air transport has emerged as one of the quickest, safest, and most economical ways to ship goods around the world. Most air freight companies provide a minimum amount of insurance for all freight, known as carrier liability. This coverage is typically scant, however. It often consists of many exclusions, including floods, earthquakes, and natural disasters, and generally doesn't provide compensation for high-value and delicate goods. These limitations have led many big shipping companies to seek out additional insurance to shield themselves against breakage, theft, lost merchandise, and, in some cases, the cargo not arriving in time, resulting in a consequential loss. Some insurance companies offer air cargo insurance directly, as do several freight forwarders and trade-service intermediaries. The amount of coverage and the deductible—the money a policyholder pays for expenses before the insurance plan starts to pay out—required for air cargo insurance varies based on the goods, as well as the individual provider. Payments, known in the insurance industry as premiums, also differ and are typically calculated based on the value of the insured items, whether they are hazardous, where they are being transported, and the route that they'll take to their destination.