Quick Answer
Marine cargo insurance covers loss or damage to goods in transit. It typically costs around 0.3–0.5% of the cargo's insured value and is strongly recommended on all international shipments, because carrier liability is limited and rarely covers the full value of lost or damaged goods.
What to Know About Cargo Insurance
- Covers loss or damage in transit (sea, air, or multimodal)
- Costs roughly 0.3–0.5% of insured value
- Carrier liability alone is limited and rarely full value
- Insure to CIF value plus a margin (often 110%)
Cargo insurance is cheap relative to the value it protects. Without it, a damaged or lost shipment can be a total loss with only minimal carrier compensation.
Key Takeaways
- Cargo insurance covers transit loss or damage.
- Costs ~0.3–0.5% of insured value.
- Carrier liability alone is limited.
- Insure to CIF value plus a margin.
Frequently Asked Questions
What does marine cargo insurance cover?
It covers loss or damage to goods while in transit by sea, air, or multimodal transport, up to the insured value, subject to the policy terms and exclusions.
How much does cargo insurance cost?
Typically around 0.3–0.5% of the insured value of the cargo, making it inexpensive relative to the value of goods it protects.
Isn't the carrier liable for my goods?
Carrier liability is limited by international conventions and is usually far below the full value of your goods. Cargo insurance covers the gap, which is why it is strongly recommended.
How much should I insure my cargo for?
Commonly the CIF value plus a margin (often 110% of CIF) to cover the goods, freight, and a portion of lost profit or expenses. Confirm the basis with your insurer.
Can Plutonia arrange cargo insurance?
Yes. Plutonia can arrange marine cargo insurance as part of managed freight so your shipments are protected in transit. Submit your shipment details to start.