📚 China import course
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Yalla China · Import · Course
Cargo Insurance: A Necessity, Not a Luxury
Many beginner importers skip insuring their goods to save money. Then they hit a disaster — damaged goods, or a loss in transit, with no compensation.
What is cargo insurance?
A contract between the importer and an insurance company that compensates you if the goods are damaged or lost during shipping.
Risks covered by insurance
- Sinking of the ship or marine accidents
- Fire on the ship or in the port warehouse
- Theft or looting at ports
- Water or humidity damage
- Breakage or mechanical damage during handling
Types of marine insurance
1. All Risk
The most comprehensive — covers most causes of damage and loss. The most expensive, but the most worthwhile.
2. ICC (A) — Institute Cargo Clauses A
Roughly equivalent to All Risk.
3. ICC (B) or ICC (C)
Narrower cover — cheaper but with more exclusions.
How much does insurance cost?
Usually between 0.3% and 0.8% of the value of the goods (CIF value).
Example: goods worth USD 10,000 → insurance of only USD 30–80.
A very small amount compared with the risk.
Where do you get insurance?
- Directly from an insurance company in your country
- From the freight forwarder (they usually offer cargo insurance)
- If you buy on CIF terms, the supplier insures the goods (but check the policy terms)
Tip: always insure the goods for 110% of their value (value of the goods + 10% to cover lost profit in case of loss).
What is cargo insurance?
A contract between the importer and an insurance company that compensates you if the goods are damaged or lost during shipping.
Risks covered by insurance
- Sinking of the ship or marine accidents
- Fire on the ship or in the port warehouse
- Theft or looting at ports
- Water or humidity damage
- Breakage or mechanical damage during handling
Types of marine insurance
1. All Risk
The most comprehensive — covers most causes of damage and loss. The most expensive, but the most worthwhile.
2. ICC (A) — Institute Cargo Clauses A
Roughly equivalent to All Risk.
3. ICC (B) or ICC (C)
Narrower cover — cheaper but with more exclusions.
How much does insurance cost?
Usually between 0.3% and 0.8% of the value of the goods (CIF value).
Example: goods worth USD 10,000 → insurance of only USD 30–80.
A very small amount compared with the risk.
Where do you get insurance?
- Directly from an insurance company in your country
- From the freight forwarder (they usually offer cargo insurance)
- If you buy on CIF terms, the supplier insures the goods (but check the policy terms)
Tip: always insure the goods for 110% of their value (value of the goods + 10% to cover lost profit in case of loss).