Should the cargo be insured if the carrier/freight forwarder's liability is insured?

All transportation operations related to cargo transportation are inextricably linked to damage, loss or destruction of cargo as a result of various circumstances. In the civilized world transportation of cargoes without insurance is practically impossible, so most of the companies choose to pay a small insurance premium compared to the real value of the cargo, so that in case of problems with the cargo to solve them at the expense of insurance.

Quite often it is possible to hear a wrong judgment from cargo owners that if the carrier's liability is insured, then in case of unsafe delivery of cargo - the cargo owner will receive compensation in any case and accordingly the question may arise - whether it is necessary to additionally insure their cargo?

This situation today is very relevant for many cargo owners who want to save money on insurance. Therefore, I would like to analyze this issue in more detail.

In fact, these are completely different types of insurance, with different objects and conditions: cargo insurance protects the interests of the cargo owner; under the insurance of the carrier's/forwarder's liability for the safety of the cargo is meant coverage of risks associated with the fulfillment of their contractual obligations to the client.
It should be noted that the carrier/freight forwarder will only be liable to pay damages where his liability arises. In particular, he is exempt from liability for loss of or damage to the goods, as well as for delay in delivery of the goods, if they occurred through no fault of his, or circumstances, the consequences of which the carrier could not have prevented. This means that for the loss of cargo caused by natural disasters and force majeure, the carrier, according to the law, in the vast majority of cases, is not liable at all, and compensation for damage as a result of traffic accidents, theft of cargo, etc. is made only in the case of proven (most often in court) responsibility of the carrier / forwarder. In maritime transportation, the Hague Rules stipulate 17 situations in which the shipowner is not liable for the cargo to the cargo owner. This means that in certain situations it is impossible to claim damages from the shipowner. However, it is often difficult and time-consuming to obtain compensation from the carrier.
It is necessary to mention the limitation of the carrier's liability limit. For example, in international road transportation, the liability of carriers is limited by the International Transport Convention (CMR), according to which the limit of liability is limited to the amount equal to 8.33 SDR/SPZ per gross weight of 1 kg of cargo. In case of sea transportation according to the Hague Rules and COGSA (Carriage of Goods by Sea Act) the shipowner's liability is not more than USD 500 per unit. That is, this limit may not be enough to cover cargo damage.
It can also be added that in most cases, the carrier is exempted from liability for damage or loss of cargo, if it was due to loading, stowage, unloading or handling of the cargo by the sender or receiver. Cargo insurance covers these risks.
Also, unlike carrier/freight forwarder liability insurance, cargo insurance provides protection against financial claims that may be made against the owner of the cargo in maritime transportation in the event of a declared General Accident, even in cases where the cargo itself is not damaged.

Summarizing all of the above, it is reasonable to conclude that only cargo insurance provides maximum coverage of cargo damage risks during its transportation, and carrier's or forwarder's liability insurance should be considered as an additional guarantee of their solvency to the cargo owner.

General Accident is a loss incurred as a result of extraordinary expenses and donations made intentionally and reasonably to save the ship, freight and cargoes being transported from a common peril. These losses are shared between the shipowner, cargo owners, regardless of whose cargo was donated.

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