The myth of carrier liability
When a container falls overboard, the shipping line owes you roughly $500 per container under standard conventions — not the $40,000 of goods inside it. Carrier liability is a legal minimum, not insurance.
The three coverage levels
Clause Covers Typical premium
--- --- ---
Institute C Major casualties only (sinking, fire, collision) 0.1–0.2%
Institute B C + water damage, jettison 0.15–0.25%
Institute A (all risks) Broad physical loss or damage 0.25–0.5%
What the premium buys per $100,000 of cargo
:::chart Premium cost vs potential uncovered loss (USD)
Institute A premium | 350
Average partial loss claim | 8500
Total loss (rare but real) | 100000
:::
Read the exclusions
- Improper packing is the most common rejected claim — pack to export standard and photograph it.
- Delay is not covered — insurance pays for damage, not lateness.
- Warehouse-to-warehouse — confirm coverage starts at the seller''s door, not the port.
> If your margin cannot absorb a total loss, you cannot afford to ship uninsured. It is that simple.
Insurance in the deal flow
On Prebro, insurance is part of the shipping quote conversation inside the deal room, so coverage is arranged while the freight is booked — not after the vessel sails.