Cargo Insurance Calculator
Estimate cargo insurance premium from goods value, freight cost, and insurance rate. Choose between CIF+uplift, invoice+uplift, or a custom insured value. Includes rate presets for air freight, sea freight, electronics, and high-value goods. Planning estimate only — contact your insurance broker for a binding quote.
Estimate cargo insurance premium from shipment value, freight cost, and insurance rate. Supports CIF+uplift, invoice value+uplift, or a custom insured value. Use for budget planning — contact your insurance broker for a binding quote.
Used when insuring CIF value
Standard ICC uplift is 10% to cover ancillary costs
Some insurers apply a per-shipment minimum
Formula
Insured value = (Goods value + Freight) × (1 + Uplift %) | Premium = Insured value × Rate ÷ 100
Standard cargo insurance covers the CIF value of the shipment plus a 10% uplift to cover ancillary costs (profit margin, inspection costs, duties). The premium is the insurance rate — typically 0.1–1.5% depending on commodity, route and coverage clauses — multiplied by the insured value. Most insurers also apply a per-shipment minimum premium.
Worked Example
Electronics shipment: Goods $50,000 · Freight $2,000 · CIF value = $52,000 · 10% uplift · Rate 0.5% · Minimum premium $100.
CIF value = $50,000 + $2,000 = $52,000
Insured value = $52,000 × 1.10 = $57,200
Premium = $57,200 × 0.5% = $286
Premium is above minimum ($100) — final premium: $286
The 10% uplift increases the insured value to $57,200 — meaning a total loss claim would recover goods, freight, and an additional 10% to cover import duty, customs broker fees, and lost profit margin.
Use this in your workflow
Include the insurance premium in your Landed Cost Calculator for a full import cost per unit. Use the Customs Value Calculator to compute CIF customs value from goods, freight and insurance. Compare insurance cost under FOB vs CIF with the FOB vs CIF Calculator. Browse all Free Business Calculators.
When to use this calculator
- →Budgeting cargo insurance cost before placing a purchase order or requesting a freight quote
- →Checking whether a seller's CIF price includes adequate insurance or only minimum cover
- →Including insurance as a component of landed cost per unit in a product costing model
- →Comparing insurance costs across air freight, sea freight, and road freight modes
Indicative cargo insurance rate guide
| Cargo type / mode | Typical rate range |
|---|---|
| Air freight — general cargo | 0.15–0.35% |
| Sea freight — general cargo | 0.25–0.50% |
| Sea freight — electronics | 0.40–0.75% |
| Sea freight — high value / luxury | 0.50–1.50% |
| Road freight — general cargo | 0.15–0.30% |
| Break bulk / project cargo | 0.50–2.00% |
Rates shown are indicative only. Actual rates depend on commodity, route, packaging, carrier, claims history, and coverage terms. Obtain quotes from a licensed marine cargo insurance broker for accurate rates.
Limitations
This calculator provides a premium estimate for planning and budgeting purposes only. Actual premiums depend on commodity classification, specific routing, packaging standards, carrier used, claims history, coverage clauses (ICC A/B/C), and the underwriter's assessment. Rate presets are indicative market ranges — not binding quotes. Minimum premiums vary by insurer. Cargo insurance is subject to policy terms, conditions, and exclusions. Always consult a licensed cargo insurance broker or underwriter before arranging cover for a commercial shipment.
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Frequently asked questions
What is cargo insurance?
Cargo insurance protects against financial loss if a shipment is damaged, lost, or stolen during transit. Coverage is defined by Institute Cargo Clauses (ICC A, B, or C), with ICC A being the broadest all-risks cover.
How is cargo insurance premium calculated?
Premium = Insured value × Rate. The insured value is typically CIF value + 10% uplift. The rate depends on commodity, route, mode, and coverage terms — typically 0.1–1.5%.
What is the standard 10% uplift?
The 10% uplift increases the insured value above CIF cost to cover ancillary losses — import duty, broker fees, and lost profit margin — not recoverable from CIF value alone in a total loss claim.
What is the difference between ICC A, B and C?
ICC A (All Risks) covers all physical loss or damage except named exclusions. ICC B and C are named-perils policies with progressively fewer covered causes. CIF Incoterms only require minimum ICC C cover — buyers should arrange ICC A for high-value shipments.
Do I need cargo insurance if the carrier is liable?
Yes. Carrier liability under Hague-Visby Rules is capped at SDR 2 per kg — far less than most commercial shipment values. Cargo insurance fills this gap.
What is a minimum premium?
Most insurers apply a per-shipment minimum premium (typically $25–100) regardless of the calculated rate. If the calculated premium is below the minimum, the minimum applies.