Cargo insurance for importers: do you need it, and which cover?
Yes, in most cases. A shipping line’s legal liability for lost or damaged cargo is capped by weight or package under the international rules, usually far below what your goods cost you. Cargo insurance covers the goods’ value plus a margin, typically 10%, for a premium that is a fraction of a percent.
Who carries the risk?
It depends on your Incoterm. Under FOB, CFR and CIF, the risk passes to you when the goods are loaded at the origin port, even if the supplier pays the freight. Under EXW it passes at the factory. Only under DAP or DDP does the supplier carry the risk to your door. Under CIF the supplier must buy insurance, but only the minimum (Clauses C). See Incoterms explained.
Clauses A, B and C
| Cover | What it covers |
|---|---|
| Clauses C | Major casualties: fire, explosion, vessel sinking, collision, containers lost overboard |
| Clauses B | Adds heavy-weather damage, water entering the ship or container, earthquake and similar perils |
| Clauses A (all risks) | Everything not specifically excluded, including theft, pilferage, handling damage and short delivery |
Most small importers choose Clauses A, because the everyday losses (damage, theft, missing cartons) are the ones that actually happen.
General average
If the ship’s master sacrifices part of the cargo or spends money to save the voyage, every cargo owner must pay a share, even if their own goods arrived untouched. The carrier can hold your goods until you provide security. Cargo insurance responds to general average; without it you may have to pay a bond before you can collect your goods.
What it costs
Premiums are a small percentage of the sum insured (goods plus freight plus 10%). ClearLane shows example prices for each cover on your quote so you can see the effect on cost per unit. The insurance prices on this site are examples while an insurer arrangement is finalised.
Upload your supplier invoice and see freight, duty, GST and cost per unit.
Get a freight quoteQuestions
Is cargo insurance included in a freight quote?
No. Transport insurance is normally a separate, optional line.
Does the shipping line’s liability cover my goods?
Only up to a limit set by weight or package under the international carriage rules, which is often far below the goods’ value.