DEFINITION of 'Air Cargo Insurance'
A type of insurance policy that protects a buyer or seller of goods being transported through the air. Air cargo insurance is designed to protect the insured against items damaged, destroyed or lost. Cargo insurance is offered through insurance companies, some freight forwarders and trade service intermediaries. The amount of coverage and deductible required with this insurance varies, with each insurance provider.
BREAKING DOWN 'Air Cargo Insurance'
A premium for the cargo is often calculated based on the value of the item, whether the item is hazardous, where it is being transported and the route that will be taken to reach its destination. Similar to this type of insurance are marine cargo insurance policies that protect buyers or sellers of goods against loss of these goods transported over water.