Cargo insurance vs CMR liability: what road freight covers
CMR carrier liability is capped at 8.33 SDR/kg (about EUR 10/kg in 2026); cargo insurance covers full goods value. See which cover your freight needs.
Logifie Team
Logistics Technology Experts
Cargo insurance and CMR liability are not the same cover. CMR — the international road-freight convention — caps a carrier's liability at 8.33 SDR per kilogram, about EUR 10/kg in 2026. Cargo insurance, bought by the shipper, covers the goods' full value. Above roughly EUR 10/kg, CMR leaves a gap.
What does CMR liability actually cover — and what does it leave out?
Under Article 23 of the CMR Convention (Convention relative au contrat de transport international de marchandises par route), a carrier is liable for loss, damage, or delay from collection to delivery. The ceiling is fixed at 8.33 Special Drawing Rights (SDR) per kilogram of gross weight affected. At the mid-2026 IMF rate, 1 SDR equals roughly EUR 1.185, placing the cap near EUR 10/kg.
That cap is the defining limitation. A pallet of electronics worth EUR 80/kg is still covered only to EUR 10/kg; the shipper absorbs the rest without a separate cargo policy. CMR liability also excludes losses from the shipper's own packaging failures, inherent vice, or events the carrier could not prevent. For how the consignment note works, see our CMR consignment note guide .
When is cargo insurance worth taking out for road freight in Europe?
The rule is straightforward: if your goods are worth more than about EUR 10 per kilogram, the CMR cap leaves a gap only a cargo policy can close. Electronics, pharmaceuticals, fashion, and automotive parts all clear that threshold easily; bulk materials such as gravel, timber, and aggregates often sit at or below it.
Cargo insurance is arranged by the shipper and covers the full declared commercial value, independently of the carrier's liability. If the cause of loss falls outside CMR liability, a cargo policy still responds on its own terms. The IRU advises shippers with high-value consignments to treat CMR cover as a floor, not a ceiling.
| Aspect | CMR carrier liability | Cargo insurance (shipper policy) |
|---|---|---|
| Who holds the policy | Carrier | Shipper or freight forwarder |
| What it covers | Carrier's liability for loss, damage, or delay | Full commercial value of the goods |
| Liability cap | 8.33 SDR/kg (approx EUR 10/kg, 2026) | Agreed insured value — no statutory cap |
| Mandatory? | Not required by the Convention; standard in practice | Optional — the shipper's commercial decision |
If you need a carrier with full compliance documentation, get a freight quote from a verified carrier and confirm their CMR cover level before booking.
Frequently asked questions
Is CMR insurance mandatory for road freight carriers in Europe?
The CMR Convention does not require carriers to hold insurance — it sets their liability but leaves insurance to national law and commercial practice. In practice almost all European carriers hold CMR liability insurance, and several member states require proof of it for road-haulage licensing.
What is the CMR liability limit per kilogram in 2026?
The limit is 8.33 SDR per kilogram, set by Article 23 of the CMR Convention as amended by the Geneva Protocol of 1978. At mid-2026 IMF rates of about EUR 1.185 per SDR, that is roughly EUR 9.87/kg, or about EUR 10/kg for budgeting. The SDR rate moves daily, so check the current IMF rate per shipment.
Can a shipper claim on the carrier's CMR insurance directly?
No. The carrier's CMR policy covers the carrier's liability, not the shipper's loss directly. The shipper claims against the carrier, and the carrier's insurer then pays the carrier up to the policy limit. This is why shippers arrange their own cargo insurance for a direct claim.
Does cargo insurance replace CMR insurance or sit alongside it?
They sit alongside each other and serve different parties: CMR cover protects the carrier, cargo insurance protects the shipper. When both apply, the cargo insurer usually pays the shipper and then pursues the carrier's CMR insurer through subrogation.
To manage freight documentation and carrier verification in one place, explore how Logifie's TMS platform can streamline your road-freight operations.
