What condition leads to cargo insurance being denied by companies?

Companies may deny cargo insurance when it involves insuring used equipment or machinery due to the inherent risks associated with these items. Used equipment often carries a higher risk of failure or defects that may not be present in new machinery, which makes it more difficult for insurers to accurately assess the risk and value of the coverage. Insurers may impose stricter criteria or exclusions for used equipment to mitigate their exposure to potential claims related to pre-existing conditions or depreciation that isn't easily quantifiable.

Loss of a shipment, overweight shipments, and damage during transit are generally scenarios that insurers address rather than automatically deny coverage for. Losses and damages during transit can often be compensated based on the terms of the policy, and overweight shipments might lead to increased premiums or specific adjustments rather than outright denial of coverage. Thus, the unique challenges presented by insuring used equipment make it the leading reason for denial.