Same as in air cargo insurance, merchandise can be insured on land shipments under the following coverages: total and/or partial theft, ordinary transit risks, loading and unloading maneuvers, warehouse to warehouse, storage, water damage, oxidation, contamination (contact with other cargos), breakage or crack, fire, explosion.
Considering the case of ordinary transit risks for land cargo insurance, coverage is included on the insured goods against material loss or damage directly caused by:
- Fire, lightning, explosion.
- Collision or rollover of the transport vehicle used.
- Train derailment.
- Sinking or breakage of bridges while transport vehicle passes by, or sinking of boats whose employment is indispensable to complete the land transit.
- Damaged directly caused by loading and unloading maneuvers, when those movements are intended to place goods over the mean of transportation or when they are downloaded from it.
- Stowage, stash, or storage maneuvers are specifically excluded when they are executed before goods are in charge or under the transport company responsibility.
The coverage of land cargo insurance starts, unless specified opposite, since merchandise is delivered to the transport company and ends when delivered to consignee at destination place. An insurance extension of risks that affect goods since they leave shipper's warehouse until they arrive to receiver's warehouse or address can be agreed, even cover good's temporary stay and the immobilization of the vehicle or its change during the journey due to particular transport reasons.
The insurer undertakes the compensation of material damages that transported merchandise or the used mean can suffer as a consequence of its transportation, excluding the damages caused by the insured goods' nature (as in perishable products).
This insurance can be hired by the vehicle's owner, the transported good's owner, the transport broker, the freight forwarder, or any person that has an interest on the merchandise conservation. The inland cargo insurance can be hired by a single trip or by a determined period of time.
For the transportation of the insured goods, trains can be used, as well as vehicles that belong to the insured or leased for its service, from a trucking company, or a cargo or commercial airline. Federal public service means of transportation that offer their service in the country must have a valid authorization and registration from the government.
For transfers of merchandise that are 'shipment continuances' and/or used goods and/or domestic shipments, storage coverage is not included and nevertheless it is mentioned as a coverage (spontaneous combustion is excluded).