Insurance for Transport Companies: What You Need to Know

Domestic or international haulage – it makes a huge difference

Many Danish hauliers and transport companies know they need insurance. But there is an important distinction that surprises many: the rules governing your liability are vastly different depending on whether you drive within Denmark's borders or cross them.

International haulage: CMR law applies automatically

If you transport goods across borders, CMR law applies automatically. You do not need to agree it – it is statutory. CMR law sets the framework for your liability as a carrier:

• Your liability is limited to 8.33 SDR per kilo of damaged goods (approx. DKK 75-80/kg)
• This matters: if you carry electronics worth DKK 500,000 weighing 200 kg, your maximum liability is only approx. DKK 15,000
• The insurance is called carrier liability insurance (also known as CMR insurance)

Domestic haulage: Here is the major pitfall

Denmark has no standalone law for domestic road freight – unlike Norway and Sweden. This means:

• CMR law does not automatically apply for domestic haulage
• If CMR is not agreed, general tort law applies – with no liability limitation
• Your carrier liability insurance is typically tied to CMR law. Without a CMR agreement, you risk being without insurance coverage

This is not theoretical. In a 2022 ruling by the Danish Maritime and Commercial High Court, a haulier was held liable for the full value of goods during domestic transport because CMR had not been validly agreed. Writing CMR on the invoice after delivery was insufficient.

The solution is simple: Agree CMR in writing before transport begins – in booking confirmations, terms of business, on your website and in all documents.

Two completely different insurances – understand the difference

It is crucial to understand that there are two types of transport insurance covering fundamentally different things:

1. Carrier liability insurance (your insurance as the transporter)

• Covers your liability for damage to customers' goods
• Only when you are at fault
• Limited to CMR rates (approx. DKK 75-80/kg)
• Also called CMR insurance

2. Cargo insurance (the goods owner's insurance)

• Covers the full value of goods during transport
• Regardless of who is at fault
• Paid by the owner of the goods
• Also called goods-in-transit insurance

The Danish Insurance Information Service explains it clearly: "The carrier's liability insurance only covers damage if the carrier is at fault." The remaining risk lies with the goods owner – unless they have taken out cargo insurance.

What must the driver carry in the truck?

Missing documents during an inspection can result in fines for both driver and haulier. Here are the minimum requirements:

Always (domestic and international):

• Driving licence (cat. C/CE)
• EU qualification certificate (CPC) – mandatory for commercial driving
• Vehicle registration certificate for truck and trailer
• Certified copy of Community licence (for hire-or-reward transport over 3,500 kg)
• Tachograph data and printer paper for printouts

For international haulage – also add:

• Passport
• CMR consignment note (many countries, including Germany, fine without it)
• EU health insurance card and A1 certificate
• Green insurance card (outside EU)
• Employment contract and payslips (posting rules)
• ADR certificate and documents for dangerous goods

Missing printer paper alone can cost DKK 1,000 in fines for the driver and DKK 2,000 for the haulier. A missing EU qualification certificate results in an immediate driving ban and fines of several thousand kroner.

Mandatory insurance

Whether you drive domestically or internationally, these insurances are legally required:

• Motor liability insurance – for all registered vehicles
• Workers' compensation insurance – for all employees, from day one

Additionally, carrier liability insurance is not legally required, but without it you bear liability for damage to customers' goods yourself. In practice, most clients and partners require it.

What should you do?

• Check if CMR is agreed for domestic haulage – is it in your booking confirmations and terms? If not, you risk being uninsured
• Understand the difference between carrier liability and cargo insurance – they are two different products for two different needs
• Review your drivers' documents – missing papers lead to fines and driving bans
• Check EU qualification certificates – they must be renewed every 5 years, and there is no automatic reminder

Contact Niels Ulrich at nu@fairside.dk or call +45 40 74 08 11 for a no-obligation review of your transport company's insurance.