Risk
Marine Cargo Insurance
Carrier liability under COGSA stops at $500 per package. For a container worth $80,000 that number protects the carrier, not you.
The gap importers discover after a loss
The Carriage of Goods by Sea Act limits a carrier to $500 per package unless the shipper declared a higher value and paid the ad valorem rate. Courts have read "package" as the pallet, the carton or the container depending on how the bill of lading described the cargo. Those readings leave you far short of your invoice value.
An all risk policy covers the goods for commercial invoice value plus freight, and most policies add 10% to cover your lost margin. Premiums run a fraction of a percent of insured value.
Common questions
Is my cargo insured by the shipping line?
No. The line carries a liability limit, and a limit pays out only where you prove the carrier caused the loss and then caps what you recover at $500 per package.
What does all risk actually cover?
Physical loss or damage from an external cause, warehouse to warehouse. Standard exclusions cover inherent vice, insufficient packing, delay and war, and war risk gets added back as a separate cover.
Who buys the insurance under my Incoterm?
Only CIF and CIP oblige the seller to insure, and CIF requires the minimum Clauses C cover. Our Incoterms reference sets out all eleven rules.
Can I insure a shipment after it sails?
Yes, provided nothing has happened to it. Cover cannot attach retroactively once a loss occurs, so place it at booking rather than at the first sign of trouble.
How do I make a claim?
Note the damage on the delivery receipt before signing, photograph everything, keep the packaging, and tell us as soon as you can. Underwriters decline claims where the consignee signed clean and reported a week later.
Does general average affect me?
Yes. A vessel casualty triggers general average, and each cargo owner contributes proportionally to the salvage. An insured shipper's underwriter posts the bond. An uninsured shipper posts cash before the line releases the container.
Related
Next step
Tell us what you are moving.
Send the commodity, the weight and dimensions, the origin and destination, and your target sailing. That gives us enough for a firm quote.