How does cargo insurance work in international transport?

Cargo insurance in international transport covers risks of loss, damage or theft of goods during transit. It is distinct from carrier liability, which is legally limited and often insufficient to cover the actual value of goods. Legal carrier liability limits: road (CMR) — 8.33 SDR per kg gross (approx. CHF 11-12/kg); sea (Hague-Visby Rules) — 666.67 SDR per package or 2 SDR per kg gross (whichever is greater); air (Montreal Convention) — 22 SDR per kg. Three coverage levels exist (Institute Cargo Clauses): ICC (A) 'All Risks' — broadest coverage for all risks of loss or damage except specific exclusions (war, strikes, inherent vice); ICC (B) — intermediate coverage for named perils (fire, explosion, shipwreck, collision, earthquake); ICC (C) — basic coverage for major named perils. Insured value is typically CIF + 10% (covering lost profit and ancillary costs).