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Cargo Insurance Basics: Protecting Your Shipment

By ANKPOST Operations Team · 2026-06-12

What is cargo insurance?

Marine cargo insurance is a policy that compensates the cargo owner for loss or damage to goods in transit, covering risks such as vessel casualty, theft, dropped containers, water damage, and handling damage that carrier liability limits do not adequately cover. Independent dispatch data indicates that carrier liability under the Carriage of Goods by Sea Act (COGSA) caps recovery at $500 per package or customary freight unit — far below the actual value of most consumer goods containers, which routinely exceed $50,000-150,000 in declared value.

In this article

Cost structure / standard tiers

Cargo insurance is typically priced as a percentage of declared cargo value, with rate variation based on commodity type and packaging.

Cargo Type Typical Premium Rate Notes
General dry goods (palletized) 0.3-0.5% of cargo value Lowest risk category
Electronics/high-value goods 0.5-1.0% of cargo value Higher theft/damage risk
Fragile/glass/ceramics 0.75-1.5% of cargo value Breakage exclusions common without proper packing
Used/refurbished goods 1.0-2.0% of cargo value Often requires special underwriting
Minimum premium per shipment $35-75 flat Applies regardless of cargo value below threshold

Deductibles typically range from $250-1,000 per claim, with lower deductibles raising the premium proportionally.

Risk mitigation / operational guidance

Do not rely on carrier liability limits — the $500/package COGSA cap applies per package or customary freight unit, not per container, and is rarely sufficient for modern cargo values. Purchase all-risk marine cargo insurance through a freight forwarder or directly from a marine underwriter, declaring the full commercial invoice value plus freight and insurance costs (CIF value) rather than just product cost. Document container condition with photos at origin loading and destination unloading to support claims involving visible damage. For high-value or fragile cargo, confirm packaging meets the insurer's stated requirements in advance, since non-compliant packing is a common basis for claim denial. File claims promptly — most policies require notice within a fixed window (often 3-14 days) of discovering damage.

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