Risk Management
Cargo Insurance Guide
Protect your shipments against loss and damage. Understand coverage options, claims procedures, and insurance obligations under different Incoterms.
3 Coverage Levels
ICC A, B, C
Typical Premium
0.1-0.5%
6-Step Process
Claims Procedure
All Risks (Institute Cargo Clauses A)Recommended
Coverage
Comprehensive coverage for all physical loss or damage
Exclusions
War, strikes, delay, inherent vice, willful misconduct
Typical Premium
0.3-0.5% of cargo value
With Average (Institute Cargo Clauses B)
Coverage
Named perils including fire, vessel stranding, collision, discharge at distress port
Exclusions
Theft, pilferage, non-delivery (unless total loss)
Typical Premium
0.2-0.35% of cargo value
Free of Particular Average (Institute Cargo Clauses C)
Coverage
Total loss only, plus general average and salvage
Exclusions
Partial loss, theft, damage from loading/unloading
Typical Premium
0.1-0.2% of cargo value
Insurance Value Calculation
Standard practice is to insure for 110% of CIF/CIP value to cover:
Cargo Value
100%
+ Expected Profit
10%
= Insured Value
110%