Carrier liability is not the same as insurance. Know the difference before you ship high-value cargo.
Every shipment carries some risk of loss or damage, and many shippers assume the carrier will cover it in full. In practice, standard carrier liability in Saudi Arabia is limited, and proper cargo insurance is the only way to protect the full value of your goods. Here is how the pieces fit together.
Carrier liability
Under standard terms and conditions, a road carrier is liable for loss or damage caused by its negligence, but that liability is capped — often at a fixed amount per kilogram or per shipment — and excludes events beyond its control such as accidents caused by third parties, weather or force majeure. For a pallet of electronics worth SAR 200,000, the cap may cover only a small fraction.
Goods-in-transit insurance
Goods-in-transit (GIT) or cargo insurance is a separate policy that pays the declared value of the goods regardless of who was at fault. It can be bought per shipment through your carrier or freight forwarder, or as an annual open policy from an insurer that covers all your shipments.
All-risk vs named perils
All-risk cover pays for any physical loss or damage except specific exclusions. Named-perils cover pays only for listed events such as fire, collision or theft. All-risk is standard for finished goods; named-perils may suit low-value bulk.
What to declare
Insure at cost plus freight plus an agreed margin (often 10 percent) so a claim restores you to your expected position. Under-declaring reduces the payout proportionally.
Filing a claim
- Note visible damage on the delivery receipt before signing.
- Photograph packaging and contents immediately.
- Notify the carrier in writing within the stated period, typically 3 to 7 days.
- Keep the damaged goods and packaging for inspection.
- Submit the invoice, packing list and waybill with the claim.
TQM International can arrange per-shipment cargo insurance at booking and provides a documented claims process for every mode.
