All Risk Comprehensive Coverage
Protects against physical loss or damage from external causes during transit, including collision, water damage, theft, pilferage, and container reefer breakdown.
Freight Risk Mitigation
Cargo Insurance
Comprehensive All Risk, Marine, Air & Inland Transit Cargo Protection for Global Shippers & Overseas Buyers.
Risk Protection Expertise
Why International Cargo Insurance Is Essential
Unforeseen events during international transit—such as severe weather, vessel capsizing, container theft, handling damage, or General Average declarations—can lead to devastating financial losses. Primary cargo insurance ensures your financial investment remains protected from origin warehouse to destination door.
General Average Protection
Covers required financial contributions and releases cargo guarantees immediately if ocean carriers declare a maritime General Average event.
Full Invoice Value + 10%
Policies cover 100% of the commercial invoice value plus freight costs and an additional 10% to reimburse unanticipated administrative expense.
E-E-A-T Insights & Industry Standards
Carrier Liability vs. Primary Cargo Insurance
Many overseas buyers incorrectly assume freight carriers are fully liable for damaged or missing freight. International maritime and aviation laws strictly limit carrier payouts.
| Risk Factor / Coverage Type | Standard Carrier Liability | Primary Cargo Insurance |
|---|---|---|
| Ocean Freight Payout Limit | Limited to $500 per package (COGSA standard) | Full Invoice Value + Freight + 10% |
| Air Freight Payout Limit | Approx. 22 SDR per kg (~$30/kg under Montreal Convention) | Full Declared Value |
| Proof of Fault Required | Yes (Shipper must prove carrier negligence) | No (Covers accidental damage & loss) |
| Acts of God & Severe Weather | Excluded from liability | Covered |
| General Average Claims | Cargo held until cash bond is paid | Insurance posts bond & pays claim |
| Claims Settlement Time | Months or years in maritime court | Fast-track direct settlement |
Tailored Policy Options
Flexible Cargo Insurance Clauses
Underwritten by world-renowned insurance companies, SHIPIT Logistics® offers specialized policy structures matched to commodity type, trade lane, and commercial risk tolerance.
All Risk (ICC-A)
The highest level of ocean and air cargo coverage. Covers all physical loss or damage except specifically excluded perils (such as improper packing or willful misconduct).
With Average (WA / ICC-B)
Provides coverage for partial loss or damage caused by specific sea hazards, heavy weather, vessel stranding, sinking, collision, or water damage.
Free of Particular Average (FPA / ICC-C)
Focuses on major catastrophic losses, covering total loss of cargo resulting from vessel collision, sinking, burning, derailment, or jettison.
Frequently Asked Questions
International Cargo Insurance FAQ
Clear guidance for overseas buyers and international shippers seeking optimal cargo protection.
Why is carrier liability insufficient for international shipments?
Carrier liability under international conventions (such as COGSA or the Montreal Convention) is strictly limited by weight or package count ($500 per package for ocean cargo) and excludes acts of God, heavy sea damage, and General Average declarations. Primary cargo insurance covers full invoice value plus freight costs regardless of carrier fault.
What is covered under All Risk Cargo Insurance?
All Risk cargo insurance provides the broadest coverage, protecting shipments against physical loss or damage from external causes, including theft, pilferage, collision, vessel capsizing, improper handling, water damage, and General Average contributions.
What is General Average and how does insurance protect importers?
General Average is a maritime law principle where all cargo owners share the financial loss if cargo is sacrificed or expenditure is incurred to save a vessel in an emergency. Without cargo insurance, your goods are held at the port until you post a substantial cash guarantee. Cargo insurance automatically covers General Average contributions and posts required bonds.
How is the insured value of cargo calculated?
Cargo insurance value is typically calculated using the formula: CIF Value + 10%, which equals (Commercial Goods Value + Freight Charges + Insurance Cost) x 110%. The additional 10% compensates for administrative costs and replacement delay expenses.
Protect Your Cargo Investment Today
Speak with an FMC-licensed logistics and freight insurance specialist to get instant coverage details and policy quotes.