Cargo Insurance for Importers: What It Covers and How Much You Need

Why the carrier's liability is not enough

Many importers assume that if a shipping line, trucker or railway damages their goods, it will pay for them. In practice the carrier pays only if the loss happened while it was responsible, only if no exemption applies, and only up to a limit set by an international convention. Sea carriers are not liable for fire unless caused by their own fault, for perils of the sea, or for errors in navigating the ship. And in a general average event you must pay a share of the ship's emergency costs even when your own goods arrive in perfect condition. Cargo insurance is the only protection that pays the full value, whatever the cause, within the policy terms.

ICC A, B and C: what each one covers

Most cargo policies worldwide use the Institute Cargo Clauses (ICC 2009), the London market standard. There are three levels. The difference matters most for the everyday risks that cause the majority of container claims: theft, rough handling, crushing and water getting into a container.

Chinese insurers such as PICC, Ping An and CPIC may issue policies under the Chinese Ocean Marine Cargo Clauses instead: All Risks, With Particular Average (WPA) and Free from Particular Average (FPA). These are roughly comparable to A, B and C, but not identical, so read the certificate wording rather than assuming. All three ICC levels share standard exclusions:

• Insufficient or unsuitable packing, including container stuffing done by you or your supplier
• Inherent vice, such as natural deterioration of the goods
• Ordinary leakage, ordinary loss of weight or volume, and wear and tear
• Delay, even when caused by an insured peril
• Wilful misconduct of the insured
• Insolvency of the ship's owners or operators (with conditions)
• Nuclear risks, and unseaworthiness the insured knew about
• War and strikes, unless added by separate clauses

War and strikes cover for Gulf shipments in 2026

War risks (war, capture, mines) and strikes risks (strikes, riots, civil commotion, terrorism) are not in the basic A, B or C cover. They are added through the Institute War Clauses (Cargo) and the Institute Strikes Clauses (Cargo). War cover by sea generally applies only while the goods are on the vessel, and insurers can cancel it at short notice, commonly 7 days. As of November 2026, with the Strait of Hormuz closed to container ships and cargo for the UAE discharged at Khor Fakkan, Sohar or Jeddah, war-risk premiums for Gulf voyages have been far higher than before March 2026, and the London market has listed wider Gulf areas as high risk. Check for every Gulf shipment that war and strikes cover is included and what it costs.

How much to insure, and who should buy it

The customary insured value is the CIF value plus 10%, so 110% of goods plus freight plus insurance. This is the minimum required for CIF and CIP under Incoterms 2020 and the default under UCP 600 letters of credit. The extra 10% covers your expected profit and the costs you have already spent. If the goods are lost after you have paid customs duty and VAT, some policies let you add duty to the insured value, so ask for it when you buy cover. Who should insure depends on your Incoterm:

Use the calculator to add up goods value, freight, duty and VAT. Your insured value is normally goods plus freight plus insurance, multiplied by 1.1. For example, goods of USD 40,000 with freight of USD 3,000 give a CIF value of about USD 43,000 and an insured value of about USD 47,300. Premium rates depend on the goods, route, packing and claims history, so they are quoted case by case; Golden Way can arrange cover through its insurance partners and our team replies within one working day.

What happens when you make a claim

1. Inspect at deliveryCount packages, check the seal number against the B/L and look for holes or water marks on the container.
2. Note damage in writingWrite specific remarks on the delivery receipt, CMR note or delivery order, for example 3 cartons crushed and wet.
3. Keep the evidenceTake photos and video, and keep damaged goods and packing until the insurer or surveyor agrees they can go.
4. Notify carrier and insurerSend written notice to the carrier or forwarder within the time limit, and call the claims agent named on the certificate.
5. SurveyThe insurer usually appoints a surveyor; ask for a joint survey with the carrier where possible.
6. Mitigate and submitSort, dry or salvage what you can, then send invoice, packing list, B/L, certificate, survey report and claim calculation.
7. Insurer pays, then recoversThe insurer pays you and pursues the carrier in your name. Do not sign any release with the carrier without the insurer's agreement.

Claims fail most often on three points: no remark on the delivery receipt, notice sent after the deadline, and damage caused by poor packing, which is excluded. Ask your supplier for export-grade packing and photos of loaded cartons; our Guangzhou warehouse counts and photographs cargo before consolidation, which helps prove the condition at origin.

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Frequently asked questions

General information checked on the date shown. Rules and rates change: our team confirms the details for your shipment.