If you carry goods in trucks of 5 tonnes or more, carrier's liability is not optional — it is compulsory, under Article 35 of the Trucking Transport Business Act. It covers the carrier's legal liability to indemnify the cargo owner when goods are damaged in transit, and applies to moving-goods, parcel and refrigerated carriers alike. Compare statutory-limit quotes from 6 insurers at once.
Carrier's Liability Insurance
1. Overview — the carrier's compulsory liability cover
This policy covers the carrier's legal liability to the cargo owner for goods a trucking carrier or freight forwarder holds in transit. Under Article 35 of the Trucking Transport Business Act, qualifying carriers must hold this cover; failure can lead to business suspension, licence revocation or an administrative fine of ₩5m.
Line
Carrier's Liability
Subject
Goods (cargo) in the carrier's receipt, carriage or delivery
Chubb · DB (strong in carrier's liability) · KB · Meritz · Hyundai Marine & Fire
Governing law
Article 35 of the Trucking Transport Business Act (compulsory), Articles 135 & 790 of the Commercial Act
Period
1 year
Statutory minimum limit
₩20m per accident / vehicle (in practice, ₩100m–₩2bn per accident is recommended)
2. Who must hold it (Trucking Transport Business Act enforcement decree)
Trucks with a maximum payload of 5 tonnes or more
Trucks with a gross weight of 10 tonnes or more
Moving-goods and parcel carriers
Refrigerated/frozen-cargo carriers
Forwarding agents (forwarders)
⚠ Penalty for non-compliance — business suspension, licence revocation, ₩5m administrative fine. On new licensing or fleet expansion, a certificate can be issued same-day or next business day (for submission to the competent authority).
3. Key features
01
Meets the statutory requirement
Certificate for the competent authority issued promptly (same/next day)
02
Defence costs included
Covers litigation costs and legal fees against the cargo owner's claim
03
Per-vehicle / per-accident limits
From the statutory ₩20m up to ₩2bn per accident, sized to cargo value
04
Specialist-transit endorsements
Extends to frozen/chilled, moving goods, international transit and warehouse storage
4. Main losses covered
The carrier's legal liability to the cargo owner for loss, damage or delay in transit
Loss notified within 10 days of delivery (the carrier's liability period under the Commercial Act)
Litigation costs and legal fees (defence costs)
Loss-prevention / mitigation costs
5. Main endorsements
①
During loading/unloadingcargo loss during handling (most frequent)
②
Packaging costreplacement of damaged packaging
③
Delay losslead-time loss (optional)
④
Frozen/chilled cargospoilage from temperature failure
Dangerous or perishable goods (without an endorsement)
Loss in the cargo-owner's own custody, before/after carriage
Insufficient packing, inherent nature of the goods
War, civil war, riot, terrorism (excluded from endorsement)
Nuclear / radiation
Driving without a licence or under the influence
6. Example scenarios (illustrative)
Scenario A
General trucking carrier (20× 5-tonne vehicles)
Limit ₩20m per accident (statutory minimum); raising to ₩50m+ is recommended in practice. The premium is confirmed after the insurer's underwriting review of vehicle type, age, mileage and loss history.
Scenario B
Specialist transport (10× heavy-equipment / dangerous-goods trailers)
Limit ₩500m per accident (to meet cargo-owner requirements), with a securing-damage endorsement for dangerous/heavy goods. The premium is confirmed after the insurer reviews cargo type, route and specifics.
Scenario C
International logistics forwarder
5,000 shipments/year, total freight around ₩10bn. ₩300m per accident / ₩2bn aggregate, with multimodal, B/L-issuance and warehouse endorsements. The premium is set after a combined review of cargo handled, countries and prior claim rate.
Scenario D
Parcel company (100 vehicles + 3 hubs)
₩100m per accident / ₩20m per vehicle, with loss cover, high-value goods (₩500k+) and hub-storage endorsements. The premium is set after a combined review of fleet size, hub locations and frequency.
Claim example
Highway rear-end collision
Cargo valued at ₩200m (semiconductor equipment). The cargo owner claims ₩200m plus delay loss. Indemnity covers cargo value within the limit plus defence costs; the actual indemnity follows the wording and the limit stated on the certificate. (Standard industry scenario.)
7. Documents required to apply
1
Business registration / corporate registerrequired for companies
2
Trucking (forwarding) licencelicence type & number
3
Vehicle registration listyear, payload, use
4
Existing certificate (copy)for renewals
5
Revenue / shipment countprior year
6
Key clients / cargo ownersclient list
7
5-year loss historyclaim rate
8
Moving/parcel standard termswhere applicable
When you need Carrier's Liability insurance
Situations we see often — a quick self-check by scenario
🚛
Carriers transporting cargo entrusted to them
Covers the legal liability for loss of cargo in their custody.
📦
Liability exposure for the cargo owner's goods
Hedges the risk of liability for loss to the cargo owner's goods in transit.
🏭
Logistics, parcel and contract-transport businesses
Covers liability for loss or damage to entrusted cargo.
🔁
Transporting many cargo owners' goods
Manages liability exposure when carrying goods for multiple cargo owners.
3 things easily missed when buying Carrier's Liability insurance
The wording and structure points most often overlooked
1
Liability limit — per-vehicle vs per-accident basis
The basis of the limit (per vehicle / per accident) changes the scope of cover.
2
Telling it apart from marine cargo insurance
The cargo owner's marine cargo insurance and the carrier's liability are separate.
3
Exclusions / sub-contracted legs
Check the wording for exclusions and the cover boundary, e.g. for sub-contracted transport.
Frequently asked questions
The items checked most before buying
Is carrier's liability insurance compulsory?
Under Article 35 of the Trucking Transport Business Act, road-cargo carriers meeting certain requirements must hold carrier's liability insurance. The scope and limit requirements vary by vehicle and business type, so confirm at the acceptance stage.
How does it differ from marine cargo insurance?
Marine cargo insurance is own-property cover for the cargo owner's own cargo, while carrier's liability insurance is third-party liability cover for the liability a carrier owes the cargo owner when it damages or loses entrusted cargo. The standpoint covered is different.
Is theft or damage to entrusted cargo covered?
It covers the liability the carrier bears for accidents during transport. As the wording's exclusions and limits apply, cover should be designed to suit the cargo type and transport conditions.
How are the limit and premium set?
They are rated on the number of vehicles, commodity, operating area and loss history. The limit and premium are confirmed after the insurer's underwriting review, and we compare the terms of six insurers for you.
Guides worth reading together
Lines that combine with or complement Carrier's Liability insurance
When applying, confirm the basics of the contract — product name, period of insurance, premium payment term and the insured — and be sure to receive and read the policy wording and product brochure.
Coverage exclusions are set out in each insurer's policy wording and brochure; refer to them for details, as claims may be limited by exclusions or payment-limitation grounds.
If the insured event has already occurred when the contract is concluded, the contract is void.
Duty of disclosure: the policyholder, the insured or their agent must answer the application/questionnaire truthfully; otherwise a claim may be declined or the contract cancelled.
Cooling-off: a policyholder may generally withdraw the application within 15 days of receiving the certificate; note that commercial (corporate) insurance taken out by a professional financial consumer cannot be withdrawn.
Providing special benefits in connection with an insurance contract is punishable under the Insurance Business Act.
N2N Insurance Brokerage is a broker registered under Article 89 of the Insurance Business Act; it does not represent any single insurer and advises on the client's side (FSS Reg. No. 2026-012201 · Business Reg. No. 611-23-02374). Application and acceptance follow each insurer's wording.
Full Korean statutory disclosures — depositor protection, tax treatment, signature requirements, the insurance-fraud reporting center and dispute resolution — are provided on the Korean version of this page.
