Who needs cargo insurance?

Any party shipping goods, product, or commodities by any means of transportation.

How are cargo insurance premiums calculated?

Cargo insurance pricing is calculated based on a valuation of the goods being transported and the perceived risk. The valuation of cargo is customizable based on the desire of the cargo owner and how it calculates values. For example, the insured value of your goods can be determined by adding the commercial invoice value of the goods (how much you are receiving in payment from your customer) to the cost of freight transport, with an additional 10% charge to cover additional expenses. Alternative valuation options are replacement cost, agreed value, and selling price.

What is considered core insurance coverage for logistics providers?

Logistics is the arrangement and/or transportation of goods in the global supply chain. The exact insurance coverage requirements must be tailored to the activities of each operation. However, as the principal activity for logistics providers is the care, custody, and control of the goods of others, a core insurance coverage is cargo legal liability.

Who needs logistics insurance products?

Logistics insurance products offer protection to any party involved in the transport, storage, or arrangement of such activities. These include trucking companies, freight forwarders, warehouse operators, non-vessel owning common carriers (NVOCC), customs brokers, and freight brokers.

How are logistics insurance products valued?

This can vary greatly depending on each activity, limits, losses, contractual liability, applicable conventions, domestic or international movement of goods, and size of operation. Gross freight receipts of mileage are always used for rating purposes in conjunction with all other relevant exposure information.

What is a general average?

A general average is a loss arising from the voluntary sacrifice of any part of a ship or cargo, or an expenditure to safeguard a ship and the rest of the cargo. When the vessel owner declares a general average, the vessel owner and all the cargo interests will share the expenses associated with the loss on a pro-rata basis. These expenses are typically covered under your cargo insurance policy. Such losses can be significant and may require letters of guarantee to have the cargo released. A letter of guarantee would be issued by the insurance company and is an agreement to meet an insured’s liability for contribution.

Cargo & Logistics

Your company’s product is your most valuable asset. Marsh’s specialist cargo and logistics team can help you identify its movement and storage risks, and determine and secure the appropriate levels of insurance protection and risk mitigation.

For producers and manufacturers, your product is your most valuable asset. Getting it to customers on time and in the right condition protects both revenue and reputation.

For logistics providers, customers expect speed, transparency, control and additional services across increasingly complex supply chains with harsher penalties and liabilities. Marsh helps you stay ahead with leading – edge risk and insurance products that support resilience, reduce exposure, and improve decision-making and B2B2C cargo solutions.

Marsh’s cargo and logistics teams help you identify and manage risk across product movement, storage, and distribution. We work with you to secure the right insurance protection and practical risk mitigation for complex supply chains with multiple transport modes and stakeholders.

Whether you are shipping your own products or carry cargo for others, we help you build stronger protection and greater visibility. Our specialists combine international market knowledge and access, digital tools, and analytics to support smarter risk programmes.

We also provide integrated claims management, advocacy, and reclaim services to help reduce costs and improve recoveries. From programme design to claims resolution, we help you manage cargo risk with confidence.

We support multinational owners of product, small parcel companies, and global logistics providers. With Marsh’s scale and expertise, you can better manage risk across the supply chain.

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FAQs

Any company that ships goods, products, or commodities by any type of transportation should consider cargo insurance.

Larger companies that regularly move high volumes of cargo and hold stock might benefit from an annual stock throughput policy. This type of insurance is flexible and covers all shipments throughout the year, so there is no need to purchase insurance for each shipment separately. It can be especially useful when the value of goods stored at factories or warehouses is below the deductible on their property insurance.

Smaller companies or those shipping less frequently might find it better to buy cargo insurance for each shipment individually. Cargo insurance can often be included additionally with their freight costs through the shipping carrier.

Cargo insurance premiums are based on two main factors: the value of goods being shipped and the level of risk (frequency and severity of losses) involved in transporting them.

Valuation of goods: The valuation of cargo is usually declared by the cargo owner. A common method is to add the commercial invoice value (the amount expected from the sale of the goods) and the freight cost. To this total, an additional 10% of the freight cost is often added for transport-related expenses, followed by another 10% charge to cover miscellaneous additional costs.
Risk assessment: The level of risk is influenced by factors such as the nature of the goods and the conditions under which they are transported. For example, cargo requiring continuous refrigeration during transit through a tropical climate is considered more vulnerable and thus carries a higher risk compared to inert products that are unaffected by temperature variations.

Logistics providers are responsible for the arrangement and transportation of goods within the global supply chain. While insurance needs vary based on the specific activities and scope of each operation.

Logistics insurance products offer protection for all parties involved in the transport, storage, or arrangement of goods. This includes trucking companies, freight forwarders, warehouse operators, non-vessel owning common carriers (NVOCC), customs brokers, and freight brokers. Essentially, any entity that handles or manages goods during the supply chain process can benefit from logistics insurance coverage.

The valuation of logistics insurance products varies widely based on several factors, including the specific activities performed, policy limits, historical loss experience, contractual liabilities, applicable international conventions, whether the movement of goods is domestic or international, and the overall scale of operations. A key metric used in rating these insurance products is gross freight receipts of mileage, which is considered alongside other relevant exposure data to determine appropriate premiums.

“General average” is a well-established principle in maritime law that addresses the allocation of losses resulting from a voluntary sacrifice or expenditure made to preserve a ship and its cargo during an emergency. For example, if part of the ship or cargo is deliberately sacrificed to save the vessel and remaining cargo, the resulting loss is shared proportionally among the vessel owner and all cargo interests involved. When a general average is declared, all parties contribute to the costs on a pro-rata basis.

These expenses are typically covered under standard cargo insurance policies. Because general average claims can be substantial, cargo release often requires letters of guarantee issued by the insurance company. This letter serves as a formal commitment to cover the insured party’s share of the general average contribution.

Global leadership

Our global team serves clients of all sizes, including those with international operations seeking to spread risk worldwide. With specialists in every major insurance hub, we work directly with insurers across global markets to present risks and deliver results aligned with client goals. Our presence in key locations allows direct access to insurance capital worldwide. This approach allows us to have better oversight of client information, helps maintain consistent standards, and supports greater transparency. It also assists in identifying potential opportunities for insurance and reinsurance arbitrage and in optimizing reinsurance structures when appropriate.

Cargo & Logistics

For producers and manufacturers, your product is your most valuable asset. Getting it to customers on time and in the right condition protects both revenue and reputation.

Our expertise

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Marcus Baker

George Jones

Mark Cracknell

Matthew Yeshin

Janice Kowell

Michael Walls

Jay Payne

Koen van Leuven

Dirk Segers

Costas Joannides

Janelle Griffith

Hrishikesh Oturkar

Carlos Villafaina

Cargo & Logistics

For producers and manufacturers, your product is your most valuable asset. Getting it to customers on time and in the right condition protects both revenue and reputation.

Global maritime, cargo and logistics insurance market trends report

Our expertise

Featured insights

Separating factual patterns from speculation in the post-Montgomery landscape

Unlocking possibility in the logistics industry

Q2 2026 market shifts: Global maritime, cargo and logistics insurance market trends report

650+

40+

US$4.3

FAQs

Who needs cargo insurance?

How are cargo insurance premiums calculated?

What is considered core insurance coverage for logistics providers?

Who needs logistics insurance products?

How are logistics insurance products valued?

What is a “general average”?

Global leadership

Marcus Baker

George Jones

Mark Cracknell

Matthew Yeshin

Janice Kowell

Michael Walls

Jay Payne

Koen van Leuven

Dirk Segers

Costas Joannides

Janelle Griffith

Hrishikesh Oturkar

Carlos Villafaina

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