FAQ - SHIPPING INSURANCE AND RISK TRANSFER

Shipping Insurance and Risk Transfer

Is my shipment insured by default?
No, COMET shipments are not insured by default, except for the standard limited coverage provided by carriers, which typically covers up to USD 100 per shipment.
However, we offer all customers the option to insure their shipment more comprehensively.
Insurance typically costs 1% of the invoiced amount and is included in the shipping charges.

 

What Incoterms COMET System use?
We use two Incoterms options for transport:

• CPT (Carriage Paid To): We arrange and pay for transport to the agreed destination. The risk transfers to the buyer when the first carrier takes possession of the goods—not upon delivery.
• FCA (Free Carrier): The risk also transfers to the buyer when the goods are handed over to the carrier, but in this case, the buyer arranges and pays for the transport.

Both options have similar risk transfer conditions, meaning the buyer bears responsibility from the moment the goods are handed over to the carrier.

 

Why is insurance recommended?
Unless specific insurance is arranged, buyers assume full responsibility for any damage or loss once the goods are handed over to the carrier. Although most carriers provide basic coverage up to USD 100 per shipment, this amount is typically insufficient to cover the full value of most orders. For this reason, we strongly recommend additional insurance, especially for higher-value shipments.

 

What is the carrier’s liability if something happens?
Carriers are typically subject to The Montreal Convention 1999 (MC99) that limit their liability for loss or damage during transport. These liability limits are generally based on weight and not on the full value of the goods, meaning compensation in case of loss or damage is often significantly lower than the actual value of the shipment.

 

What happens if I don’t arrange insurance and something goes wrong?
If no additional insurance is arranged and the shipment is lost, stolen, or damaged, COMET System cannot be held responsible beyond the standard limited coverage (typically up to USD 100). In such cases, the invoice remains payable in full, according to our standard business terms.

 

How can I arrange insurance?
You can request insurance by contacting us directly or simply including this request in your order.
If you are arranging your own transport, we also strongly recommend securing appropriate insurance with your chosen carrier when booking your shipment.