What Coverage Does Your Shipment Actually Need?
Enter your cargo details to get a recommended coverage type, estimated premium range, and the key risks to watch for.
Recommended coverage
ICC (A)
Insured value (CIF + 10%)
Enter cargo value above to see estimates
Estimated premium range
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Key risks for this cargo
Water ingress, pilferage, transit damage
ICC Clauses Explained
The Institute Cargo Clauses (ICC) are the international standard for marine cargo insurance. Each clause defines a different scope of coverage.
ICC (A) — All Risks
Most comprehensiveCovers all risks of physical loss or damage except specific exclusions (war, strikes, inherent vice, improper packing). The default choice for most commercial shipments. Premium: 0.2–0.5% of insured value.
Covers: All physical loss or damage
Excludes: War, strikes, inherent vice, improper packing, delay
ICC (B) — Named Perils
Mid-rangeCovers specific named perils: fire, explosion, vessel stranding or grounding, earthquake, heavy weather damage, jettison, and washing overboard. Does not cover theft or unexplained shortage. Premium: 0.1–0.3%.
Covers: Fire, stranding, heavy weather, jettison
Excludes: Theft, pilferage, fresh water damage, contamination
ICC (C) — Major Casualties Only
BasicThe most limited coverage. Only pays for major casualties: fire, explosion, vessel stranding, grounding, sinking, collision, and discharge at a port of distress. Suitable for low-value bulk cargo only. Premium: 0.05–0.15%.
Covers: Fire, sinking, stranding, collision
Excludes: Theft, water damage, heavy weather, improper handling
Total Loss Only (TLO)
MinimalPays only if the entire cargo is completely lost or destroyed — vessel sinks, total fire, etc. No partial loss claims. Only appropriate for very low-value bulk commodities where the cost of ICC(C) is still too high. Premium: 0.01–0.05%.
Covers: Complete loss of entire cargo only
Excludes: Everything else — partial damage, theft, partial loss
How to File a Cargo Insurance Claim
Most claims fail not because the damage isn't covered, but because of incorrect procedure. Follow these steps exactly.
Note exceptions on the delivery receipt
When cargo arrives damaged, write it on the carrier's delivery receipt before signing. 'Received in good condition' with no notation kills your claim. Be specific: 'carton 3 of 5 crushed, contents unverified'.
Notify insurer within 3 days
Most policies require notification within 3 days of discovery of loss or damage. Missing this deadline gives the insurer grounds to deny the claim. Contact your broker or insurer immediately, even if you don't have full details yet.
Preserve the damaged goods
Do not dispose of, repair, or move the damaged cargo until the insurer's surveyor has inspected it. Take photographs of everything — packaging, labels, damage. Keep all packing materials.
Gather your documentation
You will need: commercial invoice, packing list, bill of lading, survey report (if applicable), delivery receipt with exceptions noted, photographs, and correspondence with the carrier about the damage.
File a claim against the carrier too
Insurance pays you, but also subrogates (takes over) your right to recover from the carrier. To protect this right, you must file a formal claim against the carrier within the time limit on the bill of lading — usually 3 days for visible damage, 7 days for concealed damage.
Submit the claim form
Complete the insurer's claim form with all supporting documents. The insurer will assign a loss adjuster. Average processing time is 30–90 days for straightforward claims. Complex cases take longer.
6 Things That Void Your Coverage
Underinsuring the cargo value
Insurance must be for CIF value plus 10% (cost + insurance + freight + 10%). If you insure for FOB value only and a claim arises, the insurer pays proportionally less. Always declare the full landed value.
Improper packing voids all clauses
All ICC clauses exclude loss caused by improper packing. If your supplier uses inadequate packaging and cargo is damaged in normal transit, the claim will be denied. The insurer's surveyor specifically checks packing adequacy.
Signing a clean receipt for damaged cargo
If you sign the carrier's delivery receipt as 'received in good condition' without noting exceptions, you have legal proof that cargo arrived intact. You cannot claim against the insurer or the carrier afterward.
Missing the notification deadline
Most policies require notification within 3 days of discovering damage. Some require it within 72 hours of arrival even if damage is not yet confirmed. Late notification = denied claim, regardless of how valid the damage is.
Not declaring high-value items separately
Standard policies have per-item limits (e.g. $10,000 per item). Electronics, jewelry, and machinery often exceed these limits. High-value items must be declared and agreed separately before shipment — not after a loss occurs.
Assuming FOB means the seller insures it
Under FOB, risk transfers to the buyer at the port of loading. From that point on, insurance is the buyer's responsibility. Many importers assume the supplier's insurance covers door-to-door — it usually does not.