Subject of the insurance is cargo carried on conveyance from departure point to the destination.
Contract of insurance is usually on all risks basis including loading, reloading and interim storage as well as unloading of the cargo.
Basis of valuation is the value of the goods transported (invoice value at the place of departure), which may be supplemented with following:
- cost of carriage (freight)
- nonrefundable taxes e.g custom or excise tax
- exhibition costs e.g rent of the exhibition premises
- transport related undirect costs and profit usually up to 10% of the invoice value plus freight
Several additional covers may be included:
- Salvage and utilization costs (standard cover)
- General Average contribution (standard cover)
- War and Strike (including terrorists) risks (additional cover)
- Pre- and post carriage storage (additional cover)
- Exhibition risks (additional cover)
- Removals (additional cover)
- Delay (additional cover)
- Contingent insurable interest i.e Buyers/Sellers interest durng the whole route despite of delivery terms (additional cover)
Cargo may be insured as a single transport or as annual cover for example all exports / imports of the insured during the year.
Read more about for who and why is cargo insurance meant for here.