This is the most extensive form of freight insurance. It is a “named exclusion” policy, meaning it covers all external causes of physical loss or damage to your goods while in transit, unless a specific risk is explicitly excluded in the policy. The “Shippers Interest” part is crucial as it protects you, the owner of the goods, directly, unlike a carrier’s limited liability coverage.

Our policies are designed for “warehouse-to-warehouse” coverage. This means your goods are protected from the moment they leave the initial warehouse until they arrive at their final destination, regardless of the number of transfers or modes of transport (e.g., truck to port, ship to rail). It provides continuous protection under a single policy for both domestic (inland) and international shipments.

Carrier liability is a form of limited compensation, not true insurance. It’s often based on weight (e.g., $2 per lb) and only pays out if you can prove the carrier was negligent. Our “Shippers Interest” insurance, however, covers the full commercial invoice value of your goods, and you can file a claim directly with the insurer without having to prove fault, which significantly streamlines the claims process.

“All-Risk” coverage is very broad and protects against most perils, including theft, fire, rough handling, collision, and water damage. However, it’s important to note that certain high-value or specialty items may be excluded or require a special declaration.

While comprehensive, “All-Risk” policies have key exclusions. The most common reason for a claim denial is insufficient or improper packaging. Other common exclusions include loss due to delay, “inherent vice” (damage caused by the goods themselves, like spoilage), acts of war, government seizure, and damage from improper temperature control unless specifically arranged for.

It is standard practice to insure your goods for their commercial invoice value plus any freight costs and an additional percentage (often 10-20%) to cover anticipated profit and any unforeseen expenses associated with a loss. This is often referred to as “CIF + 10%” coverage. You should declare the full value you wish to be covered at the time of booking.

Yes, our freight insurance policies typically have a deductible, which is the amount you are responsible for paying before the insurance coverage begins. The deductible amount will be provided in your quote.

The most important step is to document everything immediately. Before signing the delivery receipt, you must note any visible damage or shortages on the Bill of Lading (BOL) or delivery receipt. Take detailed photos of the damage and the packaging. You must then notify your insurance provider and begin the formal claims process as soon as possible, as there are strict time limits for filing claims.

For international shipments, different countries have different liability laws and conventions (like the Hague-Visby or Warsaw Conventions) that limit a carrier’s liability. Having your own “Shippers Interest” policy ensures that your financial interests are protected by a single, predictable policy, rather than being subject to complex and often insufficient international regulations.

ShipSimple’s fast, automated process for claims is designed to be more efficient than working through a carrier’s liability claim. As long as you provide all the required documentation (like the Bill of Lading, commercial invoice, and evidence of loss), a payout can typically be processed quick and efficient,  minimizing the financial impact on your business.