One of the most important things for companies engaged in cargo transportation by road, air or sea, is the Carrier’s Cargo insurance. With it, more covers are available for voyages, but do you know what it exactly means?

The purpose of Carrier’s insurance is to guarantee payment of an indemnity to the insured for unintentional bodily injury and/or property damage to third parties. In some cases, the insurance is extended to cover the periods during which goods remain in warehouses.

Below follow the main types of insurances for Carriers:

RCTR-C (Trucker’s Liability – Cargo Insurance)

For transportation on Brazilian roads, truckers should use the RCTR-C insurance. It covers eventual damage to merchandise caused by accidents, like collision, overturning, tumbling, fire or explosion.

RCTF-C (Rail Carrier Liability - Cargo Insurance)

The purpose of the RCTF-C insurance is similar to that of the RCTR-C (Trucker’s Liability – Cargo Insurance), with the difference that it is for railway cargo transportation. This type of insurance also covers accidents occurring during the voyage, where the carrier may be held liable.

RCTA-C (Air Carrier Liability - Cargo Insurance)

Companies authorized by the Civil Aviation Department to operate in air cargo transportation services, need to have RCTA-C insurance (Air Carrier Liability - Cargo Insurance). This insurance covers the carrier against eventual loss of or damage to third party goods under the responsibility of the carrier.

RCTR-VI (Trucker’s Liability – International Voyages)

The truckers who handle international cargo transportation are obliged to place RCTR-V insurance (Trucker’s Liability – International Voyages) for voyages within Mercosul member countries (Brazil, Argentina, Paraguay and Uruguay). This insurance covers possible losses and damages caused by accidents like collision, overturning, tumbling, fire and explosion, from the place of origin to final destination.

RCA-C (Inland Waterway and Ocean Shipping Companies - Cargo Insurance)

This insurance covers property damage that may occur during sea, river and lake transportation. RCA-C is an obligatory insurance for domestic and international shipments. It provides for the payment of repairs in events, such as: stranding, sinking, fire and collision. In some cases, it also covers damages sustained in warehouses and patios used during the voyage.

RCF-DC (Facultative Liability - Disappearance of Cargo)

As the name itself indicates, RCF-DC is not an obligatory insurance. It protects shipping companies against potential cargo robbery involving threat or violence. Additionally, it also provides cover for disappearance of cargo with the involvement of criminals.

The foregoing types of insurance aim different objectives, and the shipping companies should carefully analyze every aspect when planning a service.

Prior to contracting this type of insurance, companies should check the basic covers and the additional covers, and also keep themselves updated on news from the transport associations of their region.
CredRisk Marine is an independent Insurer focused on providing specialized solutions for the supply chain, like Liability insurance.