Anyone shipping valuable goods naturally wants them to be adequately insured during transport, but the standard terms and conditions of the CMR often fall far short of covering their full value. DHL Cargo Insurance is a high-quality additional service. It bridges the gap between CMR liability and the full value of goods being transported, protecting the shipping companies from significant financial risks.
Why Is the Liability of Freight Carriers Limited?
According to the “Convention on the Contract for the International Carriage of Goods by Road” (CMR), the carrier is liable for the transported cargo. However, there is a fundamental limitation of liability. In the event of damage, CMR liability is limited to 8.33 Special Drawing Rights (SDRs) per kilogram, currently equivalent to slightly more than 10 euros per kilogram. There are exceptions, of course, such as cases in which the carrier has caused the damage intentionally or through negligence.
This liability limitation makes sense for two reasons:
- First, this ensures that logistics companies do not take risks that could threaten their entire business when transporting extremely valuable goods. Such risks would exist if the goods were damaged due to force majeure and the carrier could be held fully liable.
- Second, logistics companies can offer transportation services for valuable goods at reasonable prices because they need not factor their own risk into the cost. This keeps freight rates low, which in turn benefits companies that place the transport orders.
When the Gap Between the Liability Limit and the Actual Value Becomes Too Large
Nevertheless, the limitation of liability has one disadvantage. The more valuable the goods, the less their value is covered by the SDR per kilogram. Therefore, in the event of force majeure for which the carrier is not at fault, there may be a considerable gap between the CMR liability limit and the value of the goods. DHL Cargo Insurance closes this gap.
Without transport insurance, only a small portion of the value of damaged or lost cargo may be covered. Shippers can mitigate the financial risk of valuable shipments by extending liability coverage with DHL Cargo Insurance.
Why Efficient Transport Insurance Is Becoming More and More Important
Transportation always comes with the risk of unforeseen events, which can be attributed to either human error or unavoidable force majeure. However, the force majeure factor is becoming increasingly important. Climate change leads to extreme weather events, such as storms and floods, which can affect transportation infrastructure. This is not limited to regions of the world where extreme climatic conditions already prevail. The floods in Europe in recent years illustrate the potential risk.
Geopolitical upheavals in many parts of the world are contributing to an escalating risk situation. DHL Cargo Insurance protects DHL customers from unexpected events, which are now becoming all too common.
Security and Services Offered by DHL Cargo Insurance
- Comprehensive coverage thanks to “all-risks” approach: We offer comprehensive protection that goes beyond legal liability and industry standards for damage caused by transport accidents, fire, force majeure, and much more. With our „all-risks“ promise, we cover risks from various causes of damage for most goods, including high-risk goods and shipments to challenging destinations.
- One stop solution with a user-friendly booking portal, efficient transport handling, invoicing, and excellent customer service. Our in-house insurance experts take care of all insurance matters seamlessly and issue a single invoice for transport services and insurance (no need for additional administrative tasks).
- Efficient and fast claims process: The straightforward claims process typically allows for reimbursements within 30 days of submitting complete documentation.
- Financial Security thanks to full compensation: Comprehensive coverage minimizes financial risk. If goods are lost or damaged, customers receive a full refund for the goods and shipping costs, with no deductible.
- Local support: In the event of damage, we offer local personal support in the respective national language as well as compensation in the national currency.
- Competitive rates: We offer competitive and transparent prices. Pricing is kept simple and is based on the value of the goods, the mode of transport, the type of goods, and the calculated risks. There are two types of transport insurance: annual insurance and ad hoc insurance (one-time insurance).
Uncomplicated and Worldwide: How DHL Cargo Insurance Protects Against Risks and Financial Losses
The following example from everyday logistics and insurance demonstrates the effectiveness and cost-efficiency of DHL Cargo Insurance. A corporate customer needed to transport two industrial laundry folding machines, valued at €100,000, from France to Austria. The freight rate was €2,000. By paying a one-time fee of €300 for DHL Cargo Insurance, the customer secured full protection for their valuable machines. During transport, an accident occurred due to force majeure, resulting in the total loss of both machines.
Without DHL Cargo Insurance, the damage coverage under CMR liability would have been only around ten percent. This would have meant that the customer would have been reimbursed only €10,000, resulting in a loss of 90 percent. However, thanks to DHL Cargo Insurance, the company received €102,000 in compensation (the value of the goods plus the freight rate) and suffered no losses.
Conclusion: Excellence Fully Insured with DHL Freight and DHL Cargo Insurance
Your goods deserve to be transported without risk. With DHL Cargo Insurance, this is done transparently, efficiently, and fairly. Available for shipments to almost all countries, DHL Cargo Insurance covers almost all types of goods, provided they have been legally procured and comply with transport guidelines. Our comprehensive service and “all-risks” policy provide full insurance coverage with no deductible, so you can ship your goods with peace of mind.
