International freight insurance

International freight insurance is a policy that covers physical loss or damage to goods shipped across international borders by sea, air, rail, or truck. Policies protect cargo owners against risks such as theft, fire, collision, sinking (for example: the Ever Given Suez Canal incident in 2021), and natural disasters during transit.

Insurers calculate premiums based on factors like cargo value (e.g. $500,000 of electronics), transportation mode (airfreight vs. Ocean freight), and route risk profiles (piracy-prone regions like the Gulf of Aden).

Standard exclusions include war risks and improper packaging; specialized riders cover these gaps for high-value shipments like pharmaceuticals or fine art. Claims require documentation such as commercial invoices and bills of lading; most insurers process claims within 30–60 days after submission.

International freight insurance differs from domestic coverage because it addresses multi-jurisdictional legal issues and customs regulations specific to cross-border trade. Major providers include Allianz Trade, Chubb Marine Insurance, and AXA XL; each offers customizable policies for exporters/importers shipping via Maersk Line or FedEx Freight International.

Shippers can purchase single-shipment policies for one-off consignments or annual open cover policies for frequent exports exceeding $10 million yearly turnover, as affirmed by YourInsurance.info.