This paper deals with the issue of liability of the maritime carrier for damage on cargo caused by a navigational error. Navigational error is defined in our legislation as every damage, shortage or loss of cargo and delay in handing over cargo caused by acts or omissions of the master, other members of the ship's crew and other persons working for the carrier, in navigation or in the handling of the ship. Navigational error is recognized in some legal systems as a reason for exemption from liability for damage to the cargo, while more modern regulations do not recognize it. The definition of a navigational error is not precise enough, but is stated only in general, so it is necessary to analyze the elements related to it in each individual case, all in order to determine whether in a particular case it is a nautical error or a ship's (un) seaworthiness, given that such liability is closely related to the ship's seaworthiness, Therefore, the courts often have doubts when adjudicating. The broader aspect of the analysis of this institute needs to be clarified through the general rules on the liability of carriers, primarily for damages caused by the cargo. The Croatian legal system recognizes a navigational error as a reason for exempting carriers from liability for damage caused to the cargo, which in practice leads to greater privileges for carriers, since they have at their disposal, among other things, invoking a navigational error as an additional reason for exemption from liability.