📦 Where Australia Loses $2 Billion in Freight Every Year
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Industry Insights
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Most shippers find out what their freight insurance covers the same way they find out what their parachute doesn't. Mid-incident.
This post is here so that doesn't happen. Below is a plain-English run-through of the 54 goods categories FreightInsure covers, the 12 it doesn't, and what to do if your shipment isn't on either list. One important note up front: FreightInsure is a named-perils policy, which means cover responds when a Covered Event listed in the Product Disclosure Statement causes loss or damage. Being on the "covered" list means your goods category isn't excluded. The claim itself still depends on what actually happened, what you declared, and how the goods were packed.
With that out of the way, here's the list.
Most everyday commercial freight is covered, subject to policy terms, with cover designed to respond when goods in transit suffer accidental loss or damage from a Covered Event.
The exclusions fall into a handful of clear groups: restricted goods, specialist-valuation goods, live cargo, and household moves. Twelve categories in total.
Cover runs up to $100,000 per consignment for domestic Australian and New Zealand transit, with no excess on covered claims. Freight insurance can cover the full declared value if a shipment is lost, damaged, or stolen, while carrier liability usually pays only a fraction of it. The full terms sit in the PDS and policy wording.
That's the answer. The rest of the post is the detail.
Standard commercial freight moving by road, rail, air, or sea within Australia and New Zealand. This cargo insurance sits separately from freight carriers' limited liability and, as third-party cover issued by an independent insurer, can respond across each transport leg. Cover triggers when a Covered Event listed in the PDS causes loss or damage. Subject to declared value and policy terms.
The bulk of Australian and New Zealand freight is consumer product moving between warehouses, fulfilment centres, and end customers. FreightInsure covers apparel and clothing, baby products, beauty products, books, FMCG and non-refrigerated food, pet products, sports equipment, toys and other retail goods, plus fashion jewellery, fine jewellery and watches.
The higher the per-item value, the more declared value matters at quote time so owners aren't left covering a shortfall.
Electronics is one of the larger claim categories in Australian freight. High value, high fragility, and damage that's almost always visible at the door. FreightInsure covers computers and computer components, electronics, mobile phones, printer and toner cartridges, batteries, and electrical and lighting equipment.
Lithium battery shipments carry their own declaration and packaging rules under dangerous goods regulations. They're covered, but the rules apply.
Bulky, awkward, and easy to damage in handling. Covered categories include furniture, flat-pack furniture, soft furnishings and Manchester, household goods, carpeting and flooring, whitegoods and appliances, and glass and glass products.
Claims for glass and flat-pack furniture are strongest when goods are properly packaged, because improper packaging is one of the common reasons claims don't respond. The packaging guidelines cover what insurers actually look for.
Construction materials, hardware and tools, doors, plumbing supplies, kitchen and bathroom supplies, metals, machinery and parts, mining equipment, signage, solar panels, pool equipment, paint, and packaging and printing materials.
Most B2B trade freight in Australia falls somewhere in this group. Heavy, palletised, and often shipped in mixed loads across multiple carriers or transport stages.
Motor vehicles, automobile parts and panels, and tyres. Vehicle transit cover usually requires condition photos at pickup and a declared value backed by purchase documentation, which helps the insurer verify the insured value at claim time.
Health and medical goods, medical equipment, and pharmaceutical products. Temperature-controlled pharmaceuticals carry their own handling requirements and should be flagged at quote time.
The most varied group, and the one where category coverage carries the most asterisks. FreightInsure covers alcohol, chemicals, dangerous goods, refrigerated, perishable and frozen goods, musical instruments, paintings and framed prints, sculptures and ornaments, and furs and ivory.
For dangerous goods specifically, cover sits subject to UN classification, declaration at booking, and compliant packaging. For refrigerated and frozen goods, the standard policy responds to physical loss or damage in transit. Delay alone is usually not enough to trigger a claim unless it leads to covered physical loss or damage. Temperature deviation as a stand-alone cause is a separate question worth raising at quote time.
Camping equipment, garden materials and accessories, stationery and office equipment, and documents.
All categories listed above are covered subject to FreightInsure's Product Disclosure Statement and policy wording, including the Covered Events that trigger cover.
A small but specific list. Each one sits outside the policy for a reason worth understanding. Freight insurance cover is also different from carrier liability in standard shipping agreements, which usually provides only minimal protection.
Currency, negotiable instruments, narcotics and psychotropic substances, illegal goods, and weapons.
These sit outside any standard transit policy. Most are restricted under Australian law. The rest sit in specialist markets that operate well outside the freight insurance category.
Antiques and artwork.
This isn't a coverage failing, it's a different product. High-value collectibles typically need specialist marine cargo insurance with formal valuation certification. If you're shipping into this bracket, talk to a broker who handles specie cover.
Cigarettes and tobacco products. Regulated separately under Australian customs and excise law. Outside scope for standard freight insurance.
Living animals and living plants. Standard transit cover doesn't extend to anything that needs to stay alive on the journey. Specialist live-cargo and livestock insurers handle this category and they handle it well.
Personal effects and home removals.
FreightInsure covers commercial freight. Household moves are a different product category with different cover, different valuation rules, and different claims behaviour. Most reputable removalists carry their own arrangements, and dedicated household removals insurers exist for the rest.
The lists aren't exhaustive. Two paths from here.
If you're a shipper booking a one-off consignment, the buy-insurance flow assesses the goods at point of booking. If the consignment can be covered, the quote comes back with a price. If it can't, the system says so before you pay.
If you're a distributor fielding "do you cover X" questions from your customers, the FreightInsure team can answer category-specific questions and help structure cover for unusual or high-value consignments.
No. Category coverage means your goods aren't excluded from the policy. The claim itself depends on whether a Covered Event under the PDS caused the loss, whether the goods were declared at full value, whether packaging was adequate, and the rest of the policy terms. Report loss or damage as soon as you find it. Key claim documents usually include the original policy, commercial invoice, packing list, and bill of lading. Take clear photos of the damage and keep the damaged goods and packaging until the insurer has inspected them.
No. It's a named-perils policy. Cover attaches when a listed Covered Event causes the loss. The PDS sets out the full list of Covered Events.
Yes, dangerous goods are a covered category. Cover is subject to correct UN classification, declaration at booking, and compliant packaging. If you're not sure how to declare a dangerous goods consignment, raise it at quote time.
Freight insurance covers commercial transit. Home removals insurance covers household contents being moved between homes. Different products, different cover, different claims process. A removalist is the right starting point for the second one.
Australian marine insurance law allows for pro-rata reduction in the payout if goods are under-declared at the time of cover. If you insure a $20,000 consignment at $10,000 and a $5,000 loss occurs, the payout reflects that ratio. The fix is straightforward. Declare full value.
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Industry Insights
Industry Insights
Industry Insights
