Freight Insurance Calculator

Cargo insurance (also called marine insurance or freight insurance) covers physical loss or damage to goods during international transit by sea, air, road or rail. Policies are usually written on ICC (Institute Cargo Clauses) terms — ICC A (all risks, most comprehensive), ICC B (named perils), or ICC C (named perils, more restricted). It is distinct from carrier liability, which is limited by international conventions (Hague-Visby, Warsaw, etc.) and rarely covers full cargo value.

The uplift factor (commonly 10%) is added to the cargo value to arrive at the insured value. The standard ICC clause recommends insuring at CIF value plus 10% to account for the notional profit the insured would have made had the goods arrived safely, and to cover additional costs (freight, duty) that cannot be recovered if goods are lost. Enter 0 if your insurer or policy does not require an uplift.

Insurance rates (also called premium rates) vary by commodity, route, mode, and insurer. Typical indicative ranges: general cargo by sea 0.1%–0.4%; electronics/high value goods 0.3%–0.8%; temperature-sensitive cargo 0.2%–0.5%; high-risk trade lanes (piracy, conflict zones) 0.5%–2%+. Rates are usually quoted per USD 100 of insured value. Get a firm rate from a licensed marine insurance broker.

No. Carrier liability (under shipping line bill of lading or air waybill) limits the carrier's obligation to a very low amount per kilogram — typically SDR 2.5/kg by sea (Hague-Visby) or USD 20/kg by air (Montreal Convention). For a USD 10,000 shipment of lightweight electronics, carrier liability may cover only a few hundred dollars. Cargo insurance covers the actual value of the goods.

Under CIF and CIP Incoterms, the seller is required to procure insurance for the buyer's benefit. Under other Incoterms (EXW, FOB, CFR, DAP, DDP), the party bearing the risk is responsible for insuring. In practice, many buyers obtain their own open cargo policy to ensure consistent coverage regardless of Incoterms. The Incoterms Cost Split Calculator maps who bears the insurance obligation under each term.

Each shipper insures their own cargo value — not the full consolidation value. In a multi-shipper LCL container, each party's liability and insurance is separate. If you are the consolidator (freight forwarder) you may have contingent cargo liability exposure; obtain a specific policy for that.