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CARRIER'S LIABILITY INSURANCE

Carrier's Liability Insurance

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.

LineCarrier's Liability
SubjectGoods (cargo) in the carrier's receipt, carriage or delivery
Typical insuredsTrucking carriers, forwarding agents, parcel companies, forwarders, 3PL operators
InsuredPolicyholder (the carrier)
InsurersChubb · DB (strong in carrier's liability) · KB · Meritz · Hyundai Marine & Fire
Governing lawArticle 35 of the Trucking Transport Business Act (compulsory), Articles 135 & 790 of the Commercial Act
Period1 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
⑤
Moving goodsdamage/loss of household goods
⑥
Dangerous/high-value goodsseparate sub-limit
⑦
International transitcross-border leg (CMR)
⑧
In storagegoods in warehouse storage

Main exclusions

  • Wilful misconduct or gross negligence
  • Cash, securities, precious metals (separate endorsement required)
  • 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

Things to note

  • 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.

Carrier's Liability · comparison quote

Compulsory liability cover for trucking carriers and forwarders

We design statutory-compliant cover for the carrier's legal liability to cargo owners, with certificates issued promptly for the competent authority.

  • Article 35 compliance — certificate for the authority, same/next day
  • Defence costs included — litigation and legal fees
  • Per-vehicle / per-accident limits — sized to cargo value
  • 6 insurers compared — DB-strong carrier's liability
Ask for a comparison quote on KakaoTalk →

Coverage, exclusions and limits are governed by each insurer's wording, and the final premium is confirmed after the insurer's underwriting review. Our fee is paid by the insurer, so there is no extra cost to you (Article 98 of the Insurance Business Act).