Insurance that licensed commercial trucking operators above a set tonnage must hold under the Trucking Transport Business Act. It compensates, in the operator's name, the shipper's loss from damage, theft or loss of cargo while in transit.
N2N Insurance Brokerage does not represent any single insurer — it independently represents the client as an FSS-registered broker (Reg. No. 2026-012201). We compare the wordings, rates and service of AIG · Chubb · DB · Hyundai · KB · Meritz to propose the cover and price best suited to your risk. Each insurer's full wording is provided at application and binding.
Carrier's cargo liability insurance covers the legal liability a trucking operator bears for cargo entrusted by a shipper when that cargo is damaged, lost or stolen through an accident in transit. Since 31 December 2004, under the Trucking Transport Business Act, commercial trucking operators with vehicles above a set tonnage (2.5 tonnes or more for sole proprietors, 5 tonnes or more for general operators, and so on) must hold this insurance; operating without it is grounds for cancellation of the business registration and an administrative fine.
A statutory requirement for trucking operators under the Trucking Transport Business Act.
Cargo loss in transit from collision, overturning, fire, theft, falling and the like.
The usual transit leg from loading at origin to completion of unloading at destination.
Designed per individual vehicle, or as a fleet-wide package for a company's vehicles.
Sole proprietors (light-van / individual) and general freight operators.
Delivery firms, parcel companies and refrigerated / frozen carriers.
Operators of own delivery vehicles at factories and distribution centres.
Packed-removals, heavy-lift and precision-machinery carriers.
| Limit | KRW 10m per accident (statutory minimum) |
|---|---|
| Key endorsements | Theft extension + insufficient-cover (tarpaulin) loss extension |
| Limit | KRW 50m per accident / KRW 500m annual aggregate |
|---|---|
| Key endorsements | Refrigerated / frozen-cargo extension + theft extension |
| Limit | KRW 30m per accident |
|---|---|
| Key endorsements | Removals-cargo + high-value-goods extension |
※ The above are general design examples; actual premium and limits may differ according to the risk profile of the business, past claims history and the insurer's assessment. An exact quote is tailored on request.
A truck carrying home appliances on a fog-bound road swerved to avoid a water deer that darted out, struck a guardrail and overturned; most of the loaded cargo was damaged along with the truck. Carrier's cargo liability covered the loss owed to the shipper.
While carrying entrusted cargo, smoke appeared at the front of the vehicle and, just after an engine-bay check, flames spread across the whole vehicle. The truck and its cargo were destroyed, and besides the business interruption the carrier owed compensation to the shipper.
On a motorway, a tanker in the next lane changed lanes and braked sharply, causing a rear-end collision. The truck was badly damaged and the carried cargo was deformed beyond use, causing the shipper a loss.
※ The above are generalised examples of industry claims; actual cover outcomes may differ according to the wording and application terms.
| Policy period | 1 year, renewable |
|---|---|
| Payment | Annual (single) or instalments |
| Insurers | DB · KB · Meritz · Hyundai |
| Channel | Individual consultation with our broker (010-5755-6465) |
| Turnaround | 1–2 business days |
If the insured event has already occurred at the time the contract is made, the contract is void. However, where the contract is void due to the company's intent or negligence, or where the company knew or could have known of the nullity before acceptance yet did not refund the premium, the company refunds the premium with interest at the policy-loan rate published by the Korea Insurance Development Institute, compounded annually, for the period from the day after payment to the day of refund.
The specific losses not covered (exclusions) are set out in each insurer's policy wording and product description; on this page, see the “Cover” tab(or the “Losses not covered” section) for the main exclusions. For other cover-specific grounds on which claims are not paid, please refer to the policy wording.
The company provides cover, in accordance with the policy, from the time it accepts the application and receives the first premium. Where the company accepts the application after receiving the first premium with it, cover also begins from the time the first premium was received.
The application must be completed by the policyholder, and the policyholder and the insured must sign it by hand. Failure to sign by hand may result in disadvantages regarding the validity of the contract. On an internet cyber-mall, an electronic signature may be used instead.
The policyholder has the right to be given and have explained the information needed about the product they wish to buy.
The insurer and N2N Insurance Brokerage must explain the important matters of the product to ordinary financial consumers.
When applying, the policyholder, the insured or their agent must disclose truthfully the facts they know regarding the questions in the application (including the questionnaire). Otherwise the claim may be declined or the contract cancelled. Where insurance is taken out by telephone or other means of communication, the duty is performed by answering the seller's questions, which are recorded, without a separate written questionnaire, so answers must be given with particular care.
If, after the contract is made, any of the following arises in respect of the subject-matter insured, the policyholder or the insured must notify the company in writing without delay and obtain endorsement on the policy.
The surrender value is the amount paid if the contract is cancelled early. Unlike bank savings, insurance combines risk protection and savings: part of the premium is paid out as claims to other policyholders who suffer accidents, and part covers the insurer's operating expenses, so the surrender value on early cancellation may be less than the premiums paid, or nil.
Under Article 59-4(1) of the Income Tax Act (special tax credit), for protection-type insurance taken out by an employee only, a tax credit of 12% of the premium paid (capped at KRW 1 million per year) is available. Tax matters may change with amendment or repeal of the relevant tax law.
Except as provided by law, the insurer and N2N Insurance Brokerage do not collect, use, inspect or provide personal data related to this contract — for its conclusion, maintenance and claim payment — without the consent of the policyholder, the insured or the beneficiary. However, for those purposes the insurer may, with the consent of the policyholder and the insured and in accordance with law, provide personal data to other insurers and insurance-related bodies.
The above is a summary and excerpt of the policy wording; for grounds on which claims are not paid and other details, please refer to the policy wording and product description.
Risk patterns that come up often in freight operations — a five-scenario self-check
The Trucking Transport Business Act makes cargo liability insurance mandatory for commercial trucking operators running vehicles above a set tonnage.
If entrusted cargo is damaged, lost or stolen in transit, the carrier bears legal liability to the shipper for the loss.
Parcel and refrigerated/frozen transport involve frequent handling and high spoilage or breakage risk, so cover for cargo loss is needed.
In-house delivery vehicles run by factories and distribution centres also carry the risk of cargo loss in transit.
Packed-removals, heavy-goods and precision-machinery transport carry high cargo value and damage risk, so cover design needs particular care.
Carrier's cargo liability covers the legal liability a trucking operator bears when cargo entrusted by a shipper is damaged, lost or stolen through an accident in transit. Two points must be made clear. First, this insurance addresses compensation for the cargo — people injured or other vehicles damaged in the accident fall under motor insurance and other policies. Second, the covered leg is usually from loading at origin to completion of unloading at destination, so loss during storage before or after transit, or during work other than transport, must be reviewed separately. Above a set tonnage, cover is a statutory duty for commercial trucks, and operating without it is grounds for cancellation of the business registration and an administrative fine.
Source: (General industry example)
The wording and structure points decision-makers most often overlook
Carrier's cargo liability covers loss to the cargo in transit. People injured or other vehicles damaged in an accident fall under motor insurance and other policies, so review the overall risk across both.
The covered leg is usually from loading at origin to completion of unloading at destination. Loss during storage before or after transit, or during work other than transport, must be checked separately.
The duty applies to commercial trucks above a set tonnage. The tonnage and use of each vehicle held must be reflected accurately so that no vehicle subject to the duty is left out of cover.
The questions decision-makers ask most when considering carrier's cargo liability insurance
Under the Trucking Transport Business Act, commercial trucking operators above a set tonnage (with categories for sole proprietors, general operators and so on) must hold carrier's cargo liability insurance. Operating without it is grounds for cancellation of the business registration and an administrative fine, so check whether your vehicles fall under the duty.
Where entrusted cargo is damaged, lost or stolen in transit through collision, overturning, fire, theft, falling and the like, it covers the legal liability the operator owes the shipper.
Carrier's cargo liability covers loss to the cargo in transit. People injured or other vehicles damaged in an accident fall under motor insurance and other policies.
It usually covers the leg from loading the cargo at origin to completion of unloading at destination. Loss during storage before or after transit, or during work other than transport, must be checked separately.
It can be designed per individual vehicle or fleet-wide for a company's vehicles. The tonnage and use of each vehicle held should be reflected accurately so that no vehicle subject to the duty is left out of cover.
The insurer calculates it based on the tonnage and number of trucks, the cargo types carried, the cover limit, the operating pattern and past incident history. The exact premium and terms are confirmed after underwriting by insurers such as AIG, Chubb, DB, Hyundai, KB and Meritz.
