Cargo & Transit Insurance

The cost of transit insurance depends on the goods, their insured value, how they are packed, the transport mode and the route, so there is no single flat rate. For single transits within Australia and for imports and exports, FIS International’s online platform calculates a price instantly, so you can review it before you buy. Some shipments, such as high-value or specialised goods, are referred to our brokers for review first.

In Australia, common law bailment and standard transport contracts generally limit a carrier’s financial liability, and international air and sea carriers can cap theirs per kilogram or package under conventions such as the Montreal Convention and the Hague-Visby Rules. If your goods are damaged in a rollover, derailment or marine mishap, you may recover little or nothing from the carrier. With your own cargo transit insurance policy you claim directly from your insurer, subject to the policy terms, conditions and exclusions.

• Single transit: covers a one-off shipment from point A to point B. You declare the journey, packaging type and cargo value before the goods move.
• Annual transit: covers imports, exports and domestic transits over a 12-month period under a single rate structure, with less paperwork for regular shippers.
• Moving house or relocating a vehicle, boat or caravan? Use home removals insurance.

An All Risks policy, typically based on the Institute Cargo Clauses (A), is the broadest form of cargo cover: it protects against physical loss or damage from any external cause unless the policy excludes it. Clauses (B) and (C) are narrower and cover defined events only. Common exclusions include:

• inherent vice, such as fruit rotting naturally
• insufficient or faulty packing by the shipper
• delay, loss of market and other consequential financial losses
• theft or dishonesty by your own employees

The Incoterms rule in your sales contract sets when risk passes from seller to buyer. Under CIF the seller arranges marine transit insurance. Under FOB or EXW, risk passes to the buyer early in the journey, so an Australian importer needs its own cargo policy in place before the goods are loaded overseas.

Note the damage on the delivery docket, photograph it, and call us on 1800 656 836. Our claims page has the full step-by-step guide and the online claim form.

Run a transport business? See carriers insurance. Forwarders and customs brokers should look at freight forwarders liability insurance.

Generally, cover needs to be in place before the goods leave or before risk passes to you. Insurers do not cover losses that have already happened, so arrange your policy as soon as you know the shipment details. If your goods are already moving, call us on 1800 656 836 to discuss your options.

Packing affects the risk of damage, so it affects the price and the cover. Goods in a full container load are usually rated differently from palletised or loose cargo, and unpacked items may only be eligible for restricted cover. Choose the option that matches how the goods will actually travel.

Yes. For a single transit, your certificate of insurance is emailed once payment is processed. You can give it to your buyer, bank or freight forwarder as proof of cover, for example when your sales contract or letter of credit requires insurance.

Yes, where the policy allows. Many importers insure the full landed cost, including freight and, where relevant, duty, so a total loss covers what they actually paid. Tell us how your goods are valued when you quote and we will set the sum insured to match.