Air Cargo Insurance: Coverage Types and Risks

Why Insure Air Cargo If Airplanes Are the Safest Transport?

Many importers working with KAZLOGIST.KZ believe that the high cost of air freight and the technological advancement of aviation automatically guarantee the safety of goods. Indeed, air freight is considered the safest way to deliver from China, Europe, or the USA. However, statistics show that major damage occurs not in the air, but on the ground: during loading and unloading, while moving at terminals, or during customs inspection.

It is important to understand the difference between carrier liability and voluntary insurance. Airline liability is limited by international conventions. In the event of an incident, the payout is calculated based on the weight of the cargo, not its actual market value. For expensive electronics, spare parts, or pharmaceuticals, such compensation will not cover even a tenth of the losses. Voluntary insurance through KAZLOGIST.KZ allows you to protect the full invoice value of the goods.

Main Types of Insurance Coverage (ICC)

In international practice, it is customary to use the conditions of the Institute of London Underwriters (Institute Cargo Clauses — ICC). For air freight, three options are most often used:

• ICC (A) "All Risks" — the most comprehensive option. It covers damage or total loss of cargo for any reason, except for standard exclusions (war, strikes, packaging defects). We recommend this type of coverage for most commercial shipments.
• ICC (B) "With Responsibility for Particular Average" — covers a specific list of risks: natural disasters, fires, thefts.
• ICC (C) "Without Responsibility for Damage Except in Cases of Crash" — minimum coverage, which is relevant only in case of total loss of the aircraft.

When organizing delivery through KAZLOGIST.KZ, the choice of coverage type depends on the specifics of the goods. For fragile cargo or complex equipment, saving on the type of policy can result in serious financial losses.

Real Risks in Air Delivery to Kazakhstan

Despite the high speed (for example, from Europe to Kazakhstan, cargo usually arrives in 3–5 days), the goods pass through many hands. Main risks include:

• Mechanical damage during handling. Cargo is moved by forklifts, passes through conveyor belts and sorting centers. Shocks and falls are the most common cause of damage.
• Theft and pilferage. Although airports are high-security zones, the risk of partial theft of the contents of boxes at temporary storage warehouses (TSW) remains.
• Wetting (Wet Cargo). When moving cargo from the terminal to the aircraft on the apron, the goods can get caught in heavy rain or snow. If the packaging is not airtight, this will lead to damage.
• Temperature fluctuations. For perishable products or chemical reagents, even a short stay outside a thermal container in heat or frost is critical.

KAZLOGIST.KZ specialists minimize these risks by checking packaging and controlling documentation, but insurance remains the only financial tool for protection against force majeure.

How to Correctly Calculate the Sum Insured

The sum insured is not taken "out of thin air." It must be documented. Usually, insurance coverage includes:

• Invoice value of the goods. This is the basis, confirmed by the contract and bank transfer.
• Air freight cost. It is logical to insure delivery costs as well, as in case of cargo loss, this money will also be lost.
• Expected profit. In some cases, insurance of cost + 10% (lost profit) is allowed, if provided for by the contract.

KAZLOGIST.KZ reminds: understating the value in the invoice to optimize taxes makes it impossible to receive full compensation in an insurance case. The insurance company will pay exactly the amount specified in the documents.

Procedure Upon Discovery of Damage

If you find damage when receiving cargo at Almaty airport or during "door-to-door" delivery, you must act immediately. The process looks like this:

• Fixing damages. Take detailed photos and videos of the packaging and the goods themselves. Do not discard the packaging until the investigation is completed.
• Drawing up a commercial act. The document must be signed by a warehouse representative or the driver. A note about the damage must be made in the Air Waybill (AWB).
• Notification of the insurer and KAZLOGIST.KZ. You have a limited time (usually 24 to 72 hours) to file an initial notice.

Remember that the absence of notes in the documents upon acceptance of the cargo practically voids the chances of a payout. A thorough inspection at the time of transfer is the recipient's responsibility.

Conclusion

Insurance is not an additional expense, but a part of the risk management of any stable business. At KAZLOGIST.KZ, we help not only to deliver cargo from anywhere in the world but also to correctly issue all accompanying documents, including insurance policies. This guarantees you peace of mind regardless of the complexity of the route.

If you are planning a delivery and want to get a calculation of the shipping cost taking into account insurance, contact our specialists for an accurate proposal.