The losses covered by a General Average declaration are passed on to the vessel operators and every shipper that has a partial or full container on the vessel. The cost per uninsured shipper can be catastrophic, even if the value of a cargo shipment is low. Moreover, uninsured shippers are unable to receive any surviving cargo until they have posted an Average Bond.
In contrast, shippers with cargo insurance suffer little or no loss and on that basis alone, buying cargo insurance is a wise business expenditure.
In Depth Topics
Tip #29 – Cargo Liability versus Cargo Insurance
Don't make the mistake of assuming that Cargo Liability and Cargo Insurance are the same thing. They are not.