Professional
Cargo Insurance Estimator
Carrier liability rarely covers what your cargo is actually worth, which is why most shippers buy separate cargo insurance. This calculator applies your insurance rate to the cargo value you enter, with a small minimum premium, so you have an indicative figure to compare against what an insurer quotes.
Indicative premium
$75.00
Ready for real quotes?
Post your shipment details and receive quotes from freight forwarders.
Results are indicative only. Rates, transit times, classifications, and charges vary by carrier, lane, and contract. For binding quotes, post a request on CargoLinked or contact your forwarder.
How it works
Enter the value of the cargo you want covered and the rate percentage your insurer or broker has quoted (or a placeholder rate if you are still shopping), and the calculator multiplies the two — with a $50 minimum premium applied, since insurers typically won't write a policy below some floor regardless of how low the calculated figure comes out.
This tool multiplies the rate directly against whatever cargo value you enter. Insured value is commonly set at CIF value plus about 10% (to cover freight, insurance cost itself, and anticipated profit), so if your insurer prices premium on that CIF+10% basis rather than raw invoice value, add that uplift to the cargo value you enter here before calculating, since the tool itself does not apply it automatically.
Premium (indicative) = max($50, Cargo value × Rate %)
Worked example
Cargo value $50,000, rate 0.15%
- Raw premium$50,000 × 0.15% = $75
- Compare to minimummax($50, $75) = $75
Indicative premium: $75
Frequently asked questions
If the carrier is liable for my cargo, why do I need separate insurance?
Because carrier liability is capped well below what most cargo is actually worth. International conventions such as the Hague-Visby Rules set carrier liability limits per package or per kilogram, not based on your cargo's declared value, so a total loss typically pays out only a small fraction of what the goods are worth. Cargo insurance is what actually covers the gap between that capped liability and your cargo's real value.
What affects my cargo insurance rate?
The commodity being shipped (fragile, high-value, or hazardous goods generally cost more to insure than durable, low-value ones), the trade route and mode (some lanes carry more risk of damage, theft, or loss than others), how the cargo is packed, and the deductible you're willing to accept all move the rate. A broker or insurer will quote a specific rate based on these factors — this calculator just applies whatever rate you give it.
Is cargo insurance legally required?
No, cargo insurance is not a legal requirement for most shipments, but it is often prudent given how limited carrier liability is. One exception worth noting: under the Incoterm CIF, the seller is contractually obligated to arrange insurance for the buyer's benefit at a minimum level of cover, so if you are shipping or buying on CIF terms, insurance isn't optional in that arrangement even though no external law mandates it.
What does "insured value" mean if it's not just the invoice price?
Insured value is commonly set at the CIF value of the goods (cost, insurance, and freight) plus roughly 10%, intended to cover the buyer's anticipated profit margin or resale value on top of the raw cost. This is a common convention, not a universal rule — some policies insure at straight invoice value instead, so confirm the basis your insurer is using before comparing quotes.
What does cargo insurance typically NOT cover?
Coverage terms vary by policy, but common exclusions include inherent vice (the cargo's own tendency to spoil or deteriorate), inadequate or improper packing, delay-related losses, and war or strikes unless specifically added back in. Read the policy wording or ask your broker directly rather than assuming "all risks" cover means literally everything is included.
Related tools
Estimates & assumptions
- This is an indicative premium only — actual premiums are set by the insurer based on underwriting factors this calculator does not capture.
- The calculator applies your rate directly to the cargo value you enter; it does not automatically add the common CIF+10% insured-value uplift.
Ready to move this shipment?
Post your shipment details and receive quotes from freight forwarders.