What Are the Exclusions of Air Freight Insurance? Share of International Air Transport Insurance Knowledge

What Are the Exclusions of Air Cargo Insurance? Sharing of International Air Freight Insurance Knowledge

In international trade, air cargo transportation is one of the efficient and fast ways. However, due to the particularities of air transport, such as weather conditions and mechanical failures, which are uncontrollable factors, goods may face various risks during transportation. Air cargo insurance has become an important tool to protect the interests of cargo owners. But it should be noted that not all risks are covered by the insurance. Insurance companies usually set some exclusions. So, what are the exclusions of air cargo insurance?

Firstly, natural disasters are common exclusions. For example, in a news report in 2025, a freight flight from Southeast Asia to Europe was forced to return due to a strong typhoon. Although this incident caused flight delays and partial damage to the goods, since it falls within the scope of natural disasters, the insurance company may not be liable for such losses. Similar situations include the destruction or loss of goods caused by irresistible factors such as earthquakes and volcanic eruptions.

Secondly, human factors may also be listed as exclusions. For instance, problems caused by pilot operational errors or airport staff negligence are typically not within the scope of compensation by insurance companies. There have been cases reported in the news where ground service personnel failed to properly secure the cargo, causing it to fall and get damaged during takeoff. In such cases, responsibility is often attributed to the relevant parties rather than the airline or insurance company, making it difficult for cargo owners to receive compensation.

Furthermore, the characteristics of the goods themselves could also be an aspect of exclusion. If the goods have defects or are improperly packaged, leading to their damage during transportation, the insurance company might refuse to compensate. For example, fragile items or liquid goods that do not take appropriate protective measures may break during transportation, and the insurance company generally will not be held responsible. This reminds cargo owners to fully consider the characteristics and packaging requirements of the goods before choosing the mode of transportation.

Wars, riots, and other social upheavals are also common exclusions. In recent years, with the changes in the global situation, such risks have become increasingly significant. For example, there have been reports that due to internal conflicts, a country closed its international airports, resulting in the cancellation of many international flights and the stagnation of numerous goods. In such circumstances, insurance companies typically do not compensate for the resulting losses because these risks go beyond the coverage of commercial insurance.

Finally, there are certain exclusions under specific terms that require special attention. For example, some insurance companies impose restrictions on certain high-value or special types of goods, requiring specific conditions to be met before coverage can be obtained. For example, the transportation of luxury items such as works of art and jewelry often requires additional insurance; otherwise, even if accidents occur, full compensation may not be possible.

In summary, although air cargo insurance can provide some security for cargo owners, it is not foolproof. Understanding and mastering its exclusions is crucial for avoiding potential risks. When selecting insurance products, cargo owners should carefully read the contract terms to clarify which situations fall under the exemption scope, thereby better protecting their legitimate rights and interests. At the same time, strengthening communication and coordination with carriers and insurance companies ensures that every link in the transportation process reduces unnecessary risks as much as possible, thus minimizing losses and ensuring the smooth progress of trade activities.