Shipment coverage

Shipment coverage insures goods in transit against risks like theft, loss, or damage during transportation. Shipment coverage limits typically range from $10,000 to several million dollars per policy, as seen in UPS Capital and Chubb offerings.

Common perils covered include fire, collision, overturning, and water damage; exclusions often list improper packaging or inherent vice, as reported by the Insurance Information Database. Premiums depend on cargo value, route risk (for example, U.S.-Mexico routes have higher rates), and transport mode such as air, sea, rail, or truck.

Insurers require detailed inventory lists and commercial invoices for claims validation. Deductibles for shipment coverage policies usually fall between $500 and $2,500 depending on carrier and commodity type.

Insurance carriers offering shipment coverage include FedEx Cargo Insurance and Lloyd’s of London Marine Cargo Insurance. Claims must be reported within 7-14 days post-delivery, according to most insurer terms.

Endorsements for high-value items like electronics or pharmaceuticals increase premiums but expand protection scope. Shippers can bundle shipment coverage with warehouse-to-warehouse clauses to protect goods from origin to final destination without lapses in coverage.

Policies calculate losses based on actual invoice value plus shipping costs; typical payout examples reach $250,000 for a single electronics container loss in 2023 data from Allianz Global Corporate & Specialty.