Shipper’s Interest Insurance, Defined
Shipper’s interest insurance is cargo insurance bought by the owner of the goods, not the carrier. In Canada, it pays the declared value of a shipment that is lost, stolen or damaged in transit, no matter who was at fault. Carrier liability is capped by weight or a declared-value limit, and pays only when the carrier is proven negligent.
Who Needs Shipper’s Interest Insurance?
Online and private sellers
High-value parcels sold on marketplaces or your own store, where a courier’s $100 cap won’t cover a single loss.
Importers and exporters
Freight and ocean containers where carrier liability by weight pays a fraction of what the goods are worth.
Manufacturers and distributors
Equipment and inventory moving by truck, rail or container, insured at invoice value, up to your declared value.
Shipper’s Interest Insurance, Answered
How is it different from carrier liability?
Carrier liability is the carrier’s legal limit, not insurance. It is capped by weight, about $4.41 per kilogram on a standard bill of lading, or by a declared-value limit of around $100 to $500 on a parcel, and it pays only if the carrier is proven negligent. Shipper’s interest insurance pays you the declared value of a covered loss, whoever was at fault.
Is shipper’s interest the same as all-risk coverage?
They describe different things. Shipper’s interest describes who the policy protects: the owner of the goods. All-risk describes what it covers: physical loss or damage from any external cause unless it is specifically excluded. ShipSimple coverage is both.
Who needs shipper’s interest insurance?
Anyone shipping goods worth more than the carrier will pay for them: online sellers and private sellers shipping high-value parcels, importers and exporters moving freight and ocean containers, and manufacturers and distributors shipping equipment.
How much coverage can I get?
Up to $250,000 per parcel with no deductible, and up to $500,000 per freight or marine shipment, with a deductible that depends on what you ship. Parcel coverage starts at $2.95 and freight at $49.94, and your exact premium shows before you pay.
What isn’t covered?
Some goods are excluded, including firearms, ammunition and explosives, pharmaceuticals, live animals and plants, and raw precious metals. Some causes of loss are also excluded, such as delay, inherent vice and insufficient packing. The full list is on our What We Cover page and in our program guides.
My supplier already insured the shipment. Do I still need it?
Often, yes. Supplier cover on CIF terms is frequently Institute Cargo Clauses (C), which only covers named perils, pays on the supplier’s terms and can end before the goods reach your warehouse. Shipper’s interest insurance protects you, the owner, on all-risk terms.
