{"id":11074,"date":"2026-04-18T15:00:00","date_gmt":"2026-04-18T15:00:00","guid":{"rendered":"https:\/\/mbmlog.com\/?p=11074"},"modified":"2026-04-18T15:00:00","modified_gmt":"2026-04-18T15:00:00","slug":"how-buy-international-cargo-insurance-all-risks-vs-average-premium-calculation","status":"publish","type":"post","link":"https:\/\/mbmlog.com\/sl\/how-buy-international-cargo-insurance-all-risks-vs-average-premium-calculation\/","title":{"rendered":"How to Buy International Cargo Insurance: All Risks vs. With Average and Premium Calculation?"},"content":{"rendered":"<style>article img, .entry-content img, .post-content img, .wp-block-image img, figure img, p img {max-width:100% !important; height:auto !important;}figure { max-width:100%; }img.top-image-square {width:280px; height:280px; object-fit:cover;border-radius:12px; box-shadow:0 2px 12px rgba(0,0,0,0.10);}@media (max-width:600px) {img.top-image-square { width:100%; height:auto; max-height:300px; }p:has(> img.top-image-square) { float:none !important; margin:0 auto 15px auto !important; text-align:center; }}.claim { background-color:#fff4f4; border-left:4px solid #e63946; border-radius:10px; padding:20px 24px; margin:24px 0; font-family:system-ui,sans-serif; line-height:1.6; position:relative; box-shadow:0 2px 6px rgba(0,0,0,0.03); }.claim-true { background-color:#eafaf0; border-left-color:#2ecc71; }.claim-icon { display:inline-block; font-size:18px; color:#e63946; margin-right:10px; vertical-align:middle; }.claim-true .claim-icon { color:#2ecc71; }.claim-title { display:flex; align-items:center; font-weight:600; font-size:16px; color:#222; }.claim-label { margin-left:auto; font-size:12px; background-color:#e63946; color:#fff; padding:3px 10px; border-radius:12px; font-weight:bold; }.claim-true .claim-label { background-color:#2ecc71; }.claim-explanation { margin-top:8px; color:#555; font-size:15px; }.claim-pair { margin:32px 0; }<\/style>\n<p style=\"float: right; margin-left: 15px; margin-bottom: 15px;\">\n  <img decoding=\"async\" style=\"max-width:100%; height:auto;\" src=\"https:\/\/mbmlog.com\/wp-content\/uploads\/2026\/04\/v2-article-1776248746638-1.jpg\" alt=\"International cargo insurance options including All Risks and With Average coverage (ID#1)\" class=\"top-image-square\">\n<\/p>\n<p>Every week, our logistics team handles dozens of containers moving from China to the USA, and the one question that comes up more than any other is about insurance <a href=\"https:\/\/www.trade.gov\/know-your-incoterms\" target=\"_blank\" rel=\"noopener noreferrer\">Incoterms<\/a> <sup id=\"ref-1\"><a href=\"#footnote-1\" class=\"footnote-ref\">1<\/a><\/sup>. You spend months sourcing the perfect product, negotiating prices, and coordinating production \u2014 only to watch your entire investment sail across the Pacific with no real protection. The truth is, most shippers either skip cargo insurance entirely or buy the wrong type, and they only realize the mistake when a claim gets denied.<\/p>\n<p><strong>International cargo insurance comes in two main types: All Risks (ICC A), which covers nearly all physical loss or damage from external causes, and With Average (WPA\/ICC B), which only covers partial losses from major perils. Premiums are calculated by multiplying 110% of your invoice value by the insurance rate, which typically ranges from 0.1% to 2% depending on cargo type and route.<\/strong><\/p>\n<p>In this guide, I will walk you through exactly how to choose the right coverage, calculate your premium accurately, and follow a step-by-step process to protect your shipments. Whether you are shipping electronics, furniture, or <a href=\"https:\/\/sell.amazon.com\/fulfillment\/fba\" target=\"_blank\" rel=\"noopener noreferrer\">Amazon FBA inventory<\/a> <sup id=\"ref-2\"><a href=\"#footnote-2\" class=\"footnote-ref\">2<\/a><\/sup>, the information below will save you money and headaches.<\/p>\n<h2>How do I choose between All Risks and With Average coverage for my China to USA shipments?<\/h2>\n<p>When we prepare shipments at our Zhengzhou warehouse, one of the first conversations we have with clients is about insurance type. Many sellers assume all cargo insurance is the same. It is not. Choosing the wrong coverage can leave you exposed to thousands of dollars in losses \u2014 losses that you thought were covered.<\/p>\n<p><strong>To choose between All Risks and With Average, consider your cargo value and fragility. All Risks (ICC A) covers theft, water damage, crushing, rough handling, and most external causes. With Average (WPA\/ICC B) only covers partial losses from major accidents like sinking, fire, or collision \u2014 not everyday damage.<\/strong><\/p>\n<p><img decoding=\"async\" style=\"max-width:100%; height:auto;\" src=\"https:\/\/mbmlog.com\/wp-content\/uploads\/2026\/04\/v2-article-1776248749874-2.jpg\" alt=\"Comparing All Risks and With Average coverage for China to USA cargo shipments (ID#2)\" title=\"All Risks vs With Average\"><\/p>\n<h3>What Does All Risks Actually Cover?<\/h3>\n<p>All Risks \u2014 also called ICC A \u2014 is the broadest cargo insurance available. It covers physical loss or damage from any external cause unless the policy specifically excludes it. This includes breakage, water damage, crushing, rain damage, fire, collision, tsunami, explosion, piracy, theft, and non-delivery.<\/p>\n<p>The key word here is &quot;unless excluded.&quot; All Risks does not mean literally everything. Standard exclusions still apply. These include inherent vice (the product deteriorating on its own), insufficient packaging, delays, war, and strikes. War and strikes coverage can be added with separate clauses.<\/p>\n<h3>What Does With Average (WPA) Cover?<\/h3>\n<p>With Average \u2014 or WPA, equivalent to ICC B \u2014 is more limited. <a href=\"https:\/\/www.tata-aig.com\/marine-insurance\/institute-cargo-clauses-a-b-c\" target=\"_blank\" rel=\"noopener noreferrer\">With Average (WPA\/ICC B)<\/a> <sup id=\"ref-3\"><a href=\"#footnote-3\" class=\"footnote-ref\">3<\/a><\/sup> It covers total loss and partial losses, but only from specific named perils. Think of it as covering the &quot;big disasters&quot;: vessel sinking, fire on board, collision, stranding, and overturning during land transit.<\/p>\n<p>What WPA does not cover is where most claims actually happen. It does not cover rain damage, crushing during handling, theft from the container, or individual package losses. For most China-to-USA shipments, these are the real risks.<\/p>\n<h3>Side-by-Side Comparison<\/h3>\n<table>\n<thead>\n<tr>\n<th>Aspect<\/th>\n<th><a href=\"https:\/\/vertexaisearch.cloud.google.com\/grounding-api-redirect\/AUZIYQGqeGkM8S4jCMlE167ZlKMFkC_qRmPoVqaxWHt28tJt0syD258WBosFEtVA0Op5DS1mwuF8rimYGzlX2jFq3psdF_dUNW2HaHKZrMJ3No7cOzv9ENAK0xjZzB8eCwVD_ovEUsQpDEnBkijcV1WXlMP2eCbY-w==\" target=\"_blank\" rel=\"noopener noreferrer\">All Risks (ICC A)<\/a> <sup id=\"ref-4\"><a href=\"#footnote-4\" class=\"footnote-ref\">4<\/a><\/sup><\/th>\n<th>With Average (WPA \/ ICC B)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Coverage scope<\/td>\n<td>All physical loss\/damage unless excluded<\/td>\n<td>Partial loss only from named major perils<\/td>\n<\/tr>\n<tr>\n<td>Theft &amp; piracy<\/td>\n<td>\u2714 Covered<\/td>\n<td>\u2718 Not covered<\/td>\n<\/tr>\n<tr>\n<td>Rain &amp; water damage<\/td>\n<td>\u2714 Covered<\/td>\n<td>\u2718 Not covered (unless vessel sinks)<\/td>\n<\/tr>\n<tr>\n<td>Crushing &amp; rough handling<\/td>\n<td>\u2714 Covered<\/td>\n<td>\u2718 Not covered<\/td>\n<\/tr>\n<tr>\n<td>Fire &amp; explosion<\/td>\n<td>\u2714 Covered<\/td>\n<td>\u2714 Covered<\/td>\n<\/tr>\n<tr>\n<td>Vessel sinking\/collision<\/td>\n<td>\u2714 Covered<\/td>\n<td>\u2714 Covered<\/td>\n<\/tr>\n<tr>\n<td>General Average<\/td>\n<td>\u2714 Covered<\/td>\n<td>\u2714 Covered<\/td>\n<\/tr>\n<tr>\n<td>Premium cost<\/td>\n<td>Higher (baseline)<\/td>\n<td>20\u201350% lower than All Risks<\/td>\n<\/tr>\n<tr>\n<td>Best for<\/td>\n<td>High-value, fragile, electronics, FBA goods<\/td>\n<td>Bulk raw materials, low-value commodities<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3>When to Choose Each Type<\/h3>\n<p>From our experience shipping thousands of containers, I strongly recommend All Risks for almost every China-to-USA shipment. The price difference is small \u2014 often just a few hundred dollars more on a full container \u2014 but the protection difference is massive.<\/p>\n<p>Choose With Average only if you are shipping very low-value bulk goods like raw materials, sand, or scrap metal, where minor damage does not affect the product&#39;s usability.<\/p>\n<p>There is also a third option called FPA (Free from Particular Average), equivalent to ICC C. This is the most basic coverage. It only pays for total loss from major accidents. It does not cover partial damage at all. I rarely recommend FPA for any commercial shipment.<\/p>\n<h3>What About FPA?<\/h3>\n<p>FPA only covers complete loss \u2014 your entire container must be destroyed, sunk, or burned for a claim to be valid. If half your boxes arrive water-damaged, FPA pays nothing. For any seller shipping finished goods, FPA is simply not enough.<\/p>\n<div class=\"claim-pair\">\n<div class=\"claim claim-true\">\n<div class=\"claim-title\"><span class=\"claim-icon\">\u2714<\/span> All Risks (ICC A) covers theft, rough handling, rain damage, and crushing during transit <span class=\"claim-label\">True<\/span><\/div>\n<div class=\"claim-explanation\">All Risks provides the broadest cargo coverage, protecting against virtually all external causes of physical loss or damage unless specifically excluded in the policy.<\/div>\n<\/div>\n<div class=\"claim claim-false\">\n<div class=\"claim-title\"><span class=\"claim-icon\">\u2718<\/span> With Average (WPA) covers individual package theft and rain damage during normal transit <span class=\"claim-label\">False<\/span><\/div>\n<div class=\"claim-explanation\">WPA only covers partial losses resulting from major named perils such as fire, sinking, or collision. Everyday risks like theft, rain damage, and crushing are not included under WPA coverage.<\/div>\n<\/div>\n<\/div>\n<h2>How can I calculate the insurance premium for my international cargo accurately?<\/h2>\n<p>Our team quotes insurance for clients daily, and I can tell you the most common mistake is underestimating the insured amount. If you get this number wrong, your claim payout will be reduced proportionally \u2014 even if the damage is legitimate.<\/p>\n<p><strong>To calculate your cargo insurance premium, multiply your invoice value by 110% to get the insured amount, then multiply that by the insurance rate. The 110% markup is an international convention covering expected profit. Rates typically range from 0.1% to 2%, depending on cargo type, route, and coverage level.<\/strong><\/p>\n<p><img decoding=\"async\" style=\"max-width:100%; height:auto;\" src=\"https:\/\/mbmlog.com\/wp-content\/uploads\/2026\/04\/v2-article-1776248752241-3.jpg\" alt=\"Calculating international cargo insurance premiums using invoice value and insurance rates (ID#3)\" title=\"Calculate Cargo Insurance Premium\"><\/p>\n<h3>The Premium Formula<\/h3>\n<p>The formula is straightforward:<\/p>\n<p><strong>Insured Amount = Invoice Value \u00d7 110%<\/strong><\/p>\n<p><strong>Premium = Insured Amount \u00d7 Insurance Rate<\/strong><\/p>\n<p>The extra 10% on top of your invoice value is standard practice worldwide. It compensates for the anticipated profit you would have earned if the goods had arrived safely. This is built into international trade conventions like <a href=\"https:\/\/iccwbo.org\/publication\/ucp-600-uniform-customs-practice-documentary-credits\/\" target=\"_blank\" rel=\"noopener noreferrer\">UCP 600<\/a> <sup id=\"ref-5\"><a href=\"#footnote-5\" class=\"footnote-ref\">5<\/a><\/sup> and Incoterms.<\/p>\n<h3>What Determines Your Insurance Rate?<\/h3>\n<p>The rate is not fixed. It varies based on several factors. Here is what insurance companies look at:<\/p>\n<table>\n<thead>\n<tr>\n<th>Factor<\/th>\n<th>Impact on Rate<\/th>\n<th>Example<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Cargo type<\/td>\n<td>High \u2014 fragile or high-value goods cost more<\/td>\n<td>Electronics: 0.8\u20132%; textiles: 0.2\u20130.5%<\/td>\n<\/tr>\n<tr>\n<td>Shipping route<\/td>\n<td>Moderate \u2014 high-risk zones increase rates<\/td>\n<td>Standard China\u2013US West Coast: ~0.3%; Red Sea route: +20\u201350% surcharge<\/td>\n<\/tr>\n<tr>\n<td>Coverage type<\/td>\n<td>High \u2014 All Risks costs more than WPA<\/td>\n<td>All Risks: baseline; WPA: 20\u201350% less<\/td>\n<\/tr>\n<tr>\n<td>Packaging quality<\/td>\n<td>Moderate \u2014 poor packaging may raise rates<\/td>\n<td>Wooden crate vs. loose carton<\/td>\n<\/tr>\n<tr>\n<td>Shipping volume<\/td>\n<td>Moderate \u2014 annual policies get discounts<\/td>\n<td>Annual open policy: 20\u201330% discount<\/td>\n<\/tr>\n<tr>\n<td>Mode of transport<\/td>\n<td>Moderate \u2014 ocean vs. air vs. multimodal<\/td>\n<td>Ocean typically lower than air for same value<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3>Real-World Premium Examples<\/h3>\n<p>Let me walk through two examples we see regularly.<\/p>\n<p><strong>Example 1: Electronics shipment, FCL, China to Los Angeles<\/strong><\/p>\n<ul>\n<li>Invoice value: $50,000<\/li>\n<li>Insured amount: $50,000 \u00d7 110% = $55,000<\/li>\n<li>Insurance rate (All Risks): 1.2%<\/li>\n<li>Premium: $55,000 \u00d7 1.2% = <strong>$660<\/strong><\/li>\n<\/ul>\n<p><strong>Example 2: Furniture shipment, LCL, China to New York<\/strong><\/p>\n<ul>\n<li>Invoice value: $20,000<\/li>\n<li>Insured amount: $20,000 \u00d7 110% = $22,000<\/li>\n<li>Insurance rate (All Risks): 0.8%<\/li>\n<li>Premium: $22,000 \u00d7 0.8% = <strong>$176<\/strong><\/li>\n<\/ul>\n<p>For most shipments, the premium is a fraction of the cargo value. Compared to the risk of losing everything, it is one of the best investments you can make.<\/p>\n<h3>Common Calculation Mistakes<\/h3>\n<p>One mistake I see often: sellers use FOB value instead of CIF value. If your Incoterm is CIF, the invoice already includes cost, insurance, and freight. Use that number. If your Incoterm is FOB, you need to add estimated freight to get closer to the landed value before applying the 110% multiplier.<\/p>\n<p>Another mistake: assuming the rate your friend got last year still applies. Rates change based on market conditions, claims history, and route risk. Always get a fresh quote from your insurer or freight forwarder.<\/p>\n<div class=\"claim-pair\">\n<div class=\"claim claim-true\">\n<div class=\"claim-title\"><span class=\"claim-icon\">\u2714<\/span> The insured amount for <a href=\"https:\/\/www.freightamigo.com\/blog\/international-cargo-insurance-guide\" target=\"_blank\" rel=\"noopener noreferrer\">international cargo insurance<\/a> <sup id=\"ref-6\"><a href=\"#footnote-6\" class=\"footnote-ref\">6<\/a><\/sup> is typically calculated at 110% of the invoice value <span class=\"claim-label\">True<\/span><\/div>\n<div class=\"claim-explanation\">The extra 10% above invoice value is an international convention that compensates for anticipated profit, and it is standard practice recognized across global trade and insurance frameworks.<\/div>\n<\/div>\n<div class=\"claim claim-false\">\n<div class=\"claim-title\"><span class=\"claim-icon\">\u2718<\/span> All cargo insurance rates are standardized at a fixed percentage regardless of cargo type or route <span class=\"claim-label\">False<\/span><\/div>\n<div class=\"claim-explanation\">Insurance rates vary significantly based on cargo type, fragility, route risk, packaging quality, coverage level, and shipping volume. There is no single fixed rate for all shipments.<\/div>\n<\/div>\n<\/div>\n<h2>What steps should I follow to buy the right insurance for my container shipments?<\/h2>\n<p>When we onboard a new client at MBMLOG, we walk them through a clear process for cargo insurance. Buying insurance should not feel complicated, but skipping a step can mean your claim gets denied when you need it most.<\/p>\n<p><strong>To buy the right cargo insurance, follow these steps: assess your cargo value and fragility, choose All Risks or WPA coverage, select a provider through your freight forwarder or broker, calculate the premium based on 110% of invoice value, review policy terms and exclusions, and verify that your insurance certificate contains all required information.<\/strong><\/p>\n<p><img decoding=\"async\" style=\"max-width:100%; height:auto;\" src=\"https:\/\/mbmlog.com\/wp-content\/uploads\/2026\/04\/v2-article-1776248754531-4.jpg\" alt=\"Steps for buying the right container shipment insurance and reviewing policy terms (ID#4)\" title=\"Buying Container Shipment Insurance\"><\/p>\n<h3>Step 1: Assess Your Cargo<\/h3>\n<p>Start by answering these questions: What is the total invoice value? Is the cargo fragile, perishable, or high-value? What is the shipping route, and does it pass through high-risk zones? How is the cargo packaged?<\/p>\n<p>For anything worth more than a few thousand dollars, insurance is worth the cost. For fragile goods, electronics, furniture, appliances, lighting fixtures, branded products, or anything heading to Amazon FBA warehouses, I recommend insurance without exception.<\/p>\n<h3>Step 2: Choose Your Coverage Level<\/h3>\n<p>For 90% of commercial shipments from China to the USA, All Risks is the right choice. Choose WPA only for bulk, low-value commodities. Avoid FPA for finished goods entirely.<\/p>\n<p>If your route passes through areas with political instability or piracy risk, add <a href=\"https:\/\/iumi.com\/news\/webinars\/war-risks-and-what-they-mean-for-cargo-insurers\" target=\"_blank\" rel=\"noopener noreferrer\">War and Strikes clauses<\/a> <sup id=\"ref-7\"><a href=\"#footnote-7\" class=\"footnote-ref\">7<\/a><\/sup> (WSRCC). Your insurer or freight forwarder can advise on this.<\/p>\n<h3>Step 3: Select a Provider<\/h3>\n<p>You have three main options: buy through your freight forwarder (simplest), use an insurance broker (best for large or complex shipments), or go directly to an insurer (least common for individual shipments).<\/p>\n<p>For most Amazon sellers and e-commerce businesses, buying through your freight forwarder is the fastest and most convenient option. At MBMLOG, we handle this as part of our DDP service.<\/p>\n<h3>Step 4: Calculate and Review the Quote<\/h3>\n<p>Use the formula from the previous section. Make sure the insured amount is 110% of your invoice value. Confirm the rate matches your cargo type and route. Ask about deductibles \u2014 some policies have a minimum claim amount.<\/p>\n<h3>Step 5: Verify Your Insurance Certificate<\/h3>\n<p>This is the step most people skip, and it is the most important. Your insurance certificate must contain specific information, or your claim will be denied. Here is the checklist:<\/p>\n<table>\n<thead>\n<tr>\n<th>Required Field<\/th>\n<th>Description<\/th>\n<th>Example<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Insured (\u88ab\u4fdd\u9669\u4eba)<\/td>\n<td>The party covered by the policy<\/td>\n<td>David Smith \/ ABC Trading LLC<\/td>\n<\/tr>\n<tr>\n<td>Invoice No.<\/td>\n<td>Matches your commercial invoice<\/td>\n<td>INV-2026-0415<\/td>\n<\/tr>\n<tr>\n<td>Vessel \/ Voyage<\/td>\n<td>Ship name and voyage number<\/td>\n<td>COSCO SHIPPING ARIES V.025E<\/td>\n<\/tr>\n<tr>\n<td>Port of Loading<\/td>\n<td>Where goods are loaded<\/td>\n<td>Shanghai, China<\/td>\n<\/tr>\n<tr>\n<td>Port of Discharge<\/td>\n<td>Where goods are unloaded<\/td>\n<td>Long Beach, USA<\/td>\n<\/tr>\n<tr>\n<td>On Board Date<\/td>\n<td>Date cargo was loaded on vessel<\/td>\n<td>2026-05-15<\/td>\n<\/tr>\n<tr>\n<td>Description of Goods<\/td>\n<td>Packaging, quantity, product details<\/td>\n<td>500 cartons of LED desk lamps<\/td>\n<\/tr>\n<tr>\n<td>Amount Insured<\/td>\n<td>110% of invoice value<\/td>\n<td>USD 55,000<\/td>\n<\/tr>\n<tr>\n<td>Coverage Type<\/td>\n<td>All Risks, WPA, or FPA<\/td>\n<td>All Risks (ICC A)<\/td>\n<\/tr>\n<tr>\n<td>Claims Settlement Location<\/td>\n<td>Where claims are processed<\/td>\n<td>Long Beach, USA<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>If any of these fields are missing or incorrect, the insurance company can refuse your claim. Double-check every detail before your cargo ships.<\/p>\n<h3>Step 6: Know the Claims Process Before You Need It<\/h3>\n<p>Do not wait until damage happens to learn how claims work. Here is what you need to do if something goes wrong:<\/p>\n<ol>\n<li><strong>Photograph everything immediately<\/strong> \u2014 damaged boxes, broken products, water stains, missing cartons.<\/li>\n<li><strong>Get a Survey Report<\/strong> from the destination agent or warehouse. This is a formal damage certificate.<\/li>\n<li><strong>Preserve all documents<\/strong>: packing list, commercial invoice, <a href=\"https:\/\/www.maersk.com\/news\/articles\/2023\/10\/02\/what-is-a-bill-of-lading\" target=\"_blank\" rel=\"noopener noreferrer\">bill of lading<\/a> <sup id=\"ref-8\"><a href=\"#footnote-8\" class=\"footnote-ref\">8<\/a><\/sup>, insurance certificate, and the <a href=\"https:\/\/www.crawfordandcompany.com\/insights\/articles\/2025\/marine-cargo-surveys-a-key-to-faster,-fairer-claims.html\" target=\"_blank\" rel=\"noopener noreferrer\">survey report<\/a> <sup id=\"ref-9\"><a href=\"#footnote-9\" class=\"footnote-ref\">9<\/a><\/sup>.<\/li>\n<li><strong>Report the claim within 7 days<\/strong> of discovering the damage.<\/li>\n<\/ol>\n<h3>What Insurance Does NOT Cover<\/h3>\n<p>Even All Risks has exclusions. Your claim will be denied if:<\/p>\n<ul>\n<li>Damage was caused by poor packaging (this is the number one reason for claim denials).<\/li>\n<li>Amazon rejects goods due to labeling errors \u2014 that is a compliance issue, not a cargo loss.<\/li>\n<li>The product itself was defective before shipping.<\/li>\n<li>Delays occurred for reasons other than covered perils.<\/li>\n<\/ul>\n<p>Proper packaging is your first line of defense. Insurance is your second.<\/p>\n<div class=\"claim-pair\">\n<div class=\"claim claim-true\">\n<div class=\"claim-title\"><span class=\"claim-icon\">\u2714<\/span> An insurance certificate missing key fields like vessel name, invoice number, or insured amount can result in a denied claim <span class=\"claim-label\">True<\/span><\/div>\n<div class=\"claim-explanation\">Insurance companies require complete and accurate documentation on the certificate. Missing or incorrect information gives the insurer grounds to reject claims, even when the damage is legitimate.<\/div>\n<\/div>\n<div class=\"claim claim-false\">\n<div class=\"claim-title\"><span class=\"claim-icon\">\u2718<\/span> Cargo insurance covers damage caused by insufficient or poor packaging <span class=\"claim-label\">False<\/span><\/div>\n<div class=\"claim-explanation\">Poor packaging is a standard exclusion across all cargo insurance types, including All Risks. Insurers expect shippers to pack goods adequately for international transit, and damage from inadequate packaging is not covered.<\/div>\n<\/div>\n<\/div>\n<h2>Why is All Risks coverage the best option for protecting my Amazon FBA inventory?<\/h2>\n<p>Our team ships hundreds of Amazon FBA orders every month, and we have seen firsthand what happens when sellers skip insurance or choose the wrong type. Amazon warehouses do not compensate you for damaged or lost goods that arrive in poor condition. The loss falls entirely on the seller.<\/p>\n<p><strong>All Risks is the best option for Amazon FBA inventory because FBA shipments face high risks of rough handling, package loss, and warehouse rejection. Amazon does not reimburse sellers for transit damage, and All Risks covers theft, crushing, water damage, and mishandling \u2014 the most common issues affecting FBA cargo.<\/strong><\/p>\n<p><img decoding=\"async\" style=\"max-width:100%; height:auto;\" src=\"https:\/\/mbmlog.com\/wp-content\/uploads\/2026\/04\/v2-article-1776248757190-5.jpg\" alt=\"All Risks coverage protecting Amazon FBA inventory from theft and rough handling (ID#5)\" title=\"Amazon FBA Inventory Protection\"><\/p>\n<h3>Why FBA Shipments Are High Risk<\/h3>\n<p>Amazon FBA shipments go through multiple touchpoints: your supplier&#39;s warehouse, our consolidation facility, trucking to the port, ocean transit, US customs, domestic trucking, and finally Amazon&#39;s receiving dock. At every handoff, there is a chance for damage, mishandling, or loss.<\/p>\n<p>Amazon&#39;s receiving process is strict. If boxes arrive damaged, labels are unreadable, or carton counts do not match the shipment plan, Amazon may reject the entire delivery. With WPA or FPA insurance, none of these scenarios would be covered because they are not &quot;major maritime perils.&quot;<\/p>\n<h3>Real Risks FBA Sellers Face<\/h3>\n<p>Here are the most common problems we see with FBA shipments:<\/p>\n<ul>\n<li><strong>Crushed cartons<\/strong> from stacking in the container or rough handling at port.<\/li>\n<li><strong>Water damage<\/strong> from condensation inside containers during ocean transit (known as &quot;container rain&quot;).<\/li>\n<li><strong>Missing cartons<\/strong> \u2014 individual boxes go missing during transshipment or at the destination warehouse.<\/li>\n<li><strong>Theft<\/strong> \u2014 pilferage from containers is more common than most sellers realize.<\/li>\n<li><strong>Forklift damage<\/strong> at Amazon receiving docks.<\/li>\n<\/ul>\n<p>All of these are covered under All Risks. None of them are covered under WPA or FPA.<\/p>\n<h3>The Cost of Not Insuring<\/h3>\n<p>Let me put this in perspective. Say you ship $30,000 worth of electronics to Amazon FBA. The All Risks premium might be $400\u2013$600. If even one pallet of product is water-damaged or lost \u2014 worth perhaps $5,000 \u2014 you have already lost more than 8x the cost of insurance.<\/p>\n<p>Amazon will not reimburse you. Your carrier&#39;s liability is capped at roughly $500 per package under the <a href=\"https:\/\/www.dutchcivillaw.com\/hague-visbyrules.htm\" target=\"_blank\" rel=\"noopener noreferrer\">Hague-Visby Rules<\/a> <sup id=\"ref-10\"><a href=\"#footnote-10\" class=\"footnote-ref\">10<\/a><\/sup> (SDR 666.67 per package), which is a fraction of your actual cargo value. Without All Risks insurance, you absorb the full loss.<\/p>\n<h3>Products That Must Be Insured<\/h3>\n<p>Based on years of experience, here are the categories I always recommend insuring:<\/p>\n<ul>\n<li><strong>Electronics<\/strong>: phones, tablets, computer parts, LED lighting<\/li>\n<li><strong>Furniture and home goods<\/strong>: easily scratched, dented, or broken<\/li>\n<li><strong>Appliances<\/strong>: heavy, fragile components<\/li>\n<li><strong>Branded products<\/strong>: high per-unit value<\/li>\n<li><strong>Any product over $10,000 total shipment value<\/strong><\/li>\n<li><strong>Long-haul routes<\/strong>: US East Coast, Europe, South America \u2014 longer transit means more risk<\/li>\n<\/ul>\n<h3>Annual Open Policies for Regular Shippers<\/h3>\n<p>If you ship to Amazon FBA regularly \u2014 say once or twice a month \u2014 ask about an annual open policy. This gives you automatic coverage on every shipment without buying a new policy each time. Annual policies often come with a 20\u201330% discount on rates. They also simplify your operations because you do not need to coordinate insurance for each individual shipment.<\/p>\n<p>For high-volume Amazon sellers, this is the most cost-effective approach. We help our MBMLOG clients set this up as part of their ongoing shipping arrangements.<\/p>\n<div class=\"claim-pair\">\n<div class=\"claim claim-true\">\n<div class=\"claim-title\"><span class=\"claim-icon\">\u2714<\/span> Amazon FBA warehouses do not compensate sellers for goods damaged during international transit <span class=\"claim-label\">True<\/span><\/div>\n<div class=\"claim-explanation\">Amazon's FBA program holds sellers responsible for ensuring goods arrive in sellable condition. Damage that occurs before goods reach Amazon's warehouse is the seller's liability, not Amazon's.<\/div>\n<\/div>\n<div class=\"claim claim-false\">\n<div class=\"claim-title\"><span class=\"claim-icon\">\u2718<\/span> The ocean carrier's liability coverage is sufficient to protect the full commercial value of your FBA inventory <span class=\"claim-label\">False<\/span><\/div>\n<div class=\"claim-explanation\">Under the Hague-Visby Rules, ocean carrier liability is limited to approximately SDR 666.67 per package or SDR 2 per kilogram, whichever is higher. For most commercial cargo, this covers less than 5% of the actual goods value.<\/div>\n<\/div>\n<\/div>\n<h2>Conclusion<\/h2>\n<p>Choosing the right international cargo insurance comes down to understanding your risks, your cargo value, and your coverage options. All Risks is the clear winner for most China-to-USA shipments, especially for Amazon FBA inventory. Calculate your premium using 110% of invoice value, verify every field on your insurance certificate, and always document damage immediately. If you need help selecting or purchasing cargo insurance for your next shipment, reach out to our team at MBMLOG \u2014 we handle this every day.<\/p>\n<h2>Footnotes<\/h2>\n<p><span id=\"footnote-1\"><br \/>\n1. Replaced with an authoritative .gov source on Incoterms. <a href=\"#ref-1\" class=\"footnote-backref\">\u21a9\ufe0e<\/a><br \/>\n<\/span><\/p>\n<p><span id=\"footnote-2\"><br \/>\n2. Official Amazon page explaining the Fulfillment by Amazon service. <a href=\"#ref-2\" class=\"footnote-backref\">\u21a9\ufe0e<\/a><br \/>\n<\/span><\/p>\n<p><span id=\"footnote-3\"><br \/>\n3. Defines a more limited type of cargo insurance coverage under Institute Cargo Clauses. <a href=\"#ref-3\" class=\"footnote-backref\">\u21a9\ufe0e<\/a><br \/>\n<\/span><\/p>\n<p><span id=\"footnote-4\"><br \/>\n4. Replaced with a direct link to the Institute Cargo Clauses (A) document, which is highly authoritative. <a href=\"#ref-4\" class=\"footnote-backref\">\u21a9\ufe0e<\/a><br \/>\n<\/span><\/p>\n<p><span id=\"footnote-5\"><br \/>\n5. Official rules for documentary credits issued by the International Chamber of Commerce. <a href=\"#ref-5\" class=\"footnote-backref\">\u21a9\ufe0e<\/a><br \/>\n<\/span><\/p>\n<p><span id=\"footnote-6\"><br \/>\n6. Provides a comprehensive guide to international cargo insurance. <a href=\"#ref-6\" class=\"footnote-backref\">\u21a9\ufe0e<\/a><br \/>\n<\/span><\/p>\n<p><span id=\"footnote-7\"><br \/>\n7. Replaced with an authoritative source on war and strikes risks from the International Union of Marine Insurance (IUMI). <a href=\"#ref-7\" class=\"footnote-backref\">\u21a9\ufe0e<\/a><br \/>\n<\/span><\/p>\n<p><span id=\"footnote-8\"><br \/>\n8. Defines a crucial legal document used in international shipping. <a href=\"#ref-8\" class=\"footnote-backref\">\u21a9\ufe0e<\/a><br \/>\n<\/span><\/p>\n<p><span id=\"footnote-9\"><br \/>\n9. Describes a formal document required for cargo insurance claims. <a href=\"#ref-9\" class=\"footnote-backref\">\u21a9\ufe0e<\/a><br \/>\n<\/span><\/p>\n<p><span id=\"footnote-10\"><br \/>\n10. Details the international convention governing carrier liability in maritime transport. <a href=\"#ref-10\" class=\"footnote-backref\">\u21a9\ufe0e<\/a><br \/>\n<\/span><\/p>\n<p><script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How to Buy International Cargo Insurance: All Risks vs. With Average and Premium Calculation?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"International cargo insurance comes in two main types: All Risks (ICC A), which covers nearly all physical loss or damage from external causes, and With Average (WPA\/ICC B), which only covers partial losses from major perils. Premiums are calculated by multiplying 110% of your invoice value by the insurance rate, which typically ranges from 0.1% to 2% depending on cargo type and route.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How do I choose between All Risks and With Average coverage for my China to USA shipments?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"To choose between All Risks and With Average, consider your cargo value and fragility. All Risks (ICC A) covers theft, water damage, crushing, rough handling, and most external causes. With Average (WPA\/ICC B) only covers partial losses from major accidents like sinking, fire, or collision \u2014 not everyday damage.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How can I calculate the insurance premium for my international cargo accurately?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"To calculate your cargo insurance premium, multiply your invoice value by 110% to get the insured amount, then multiply that by the insurance rate. The 110% markup is an international convention covering expected profit. Rates typically range from 0.1% to 2%, depending on cargo type, route, and coverage level.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What steps should I follow to buy the right insurance for my container shipments?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"To buy the right cargo insurance, follow these steps: assess your cargo value and fragility, choose All Risks or WPA coverage, select a provider through your freight forwarder or broker, calculate the premium based on 110% of invoice value, review policy terms and exclusions, and verify that your insurance certificate contains all required information.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Why is All Risks coverage the best option for protecting my Amazon FBA inventory?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"All Risks is the best option for Amazon FBA inventory because FBA shipments face high risks of rough handling, package loss, and warehouse rejection. Amazon does not reimburse sellers for transit damage, and All Risks covers theft, crushing, water damage, and mishandling \u2014 the most common issues affecting FBA cargo.\"\n      }\n    }\n  ]\n}\n<\/script><\/p>\n<p><script type=\"application\/ld+json\">\n[\n  {\n    \"@context\": \"https:\/\/schema.org\",\n    \"@type\": \"ClaimReview\",\n    \"url\": \"\",\n    \"claimReviewed\": \"All Risks (ICC A) covers theft, rough handling, rain damage, and crushing during transit\",\n    \"author\": {\n      \"@type\": \"Organization\",\n      \"name\": \"Article Author\"\n    },\n    \"reviewRating\": {\n      \"@type\": \"Rating\",\n      \"ratingValue\": 5,\n      \"bestRating\": 5,\n      \"worstRating\": 1,\n      \"alternateName\": \"True\"\n    }\n  },\n  {\n    \"@context\": \"https:\/\/schema.org\",\n    \"@type\": \"ClaimReview\",\n    \"url\": \"\",\n    \"claimReviewed\": \"With Average (WPA) covers individual package theft and rain damage during normal transit\",\n    \"author\": {\n      \"@type\": \"Organization\",\n      \"name\": \"Article Author\"\n    },\n    \"reviewRating\": {\n      \"@type\": \"Rating\",\n      \"ratingValue\": 1,\n      \"bestRating\": 5,\n      \"worstRating\": 1,\n      \"alternateName\": \"False\"\n    }\n  },\n  {\n    \"@context\": \"https:\/\/schema.org\",\n    \"@type\": \"ClaimReview\",\n    \"url\": \"\",\n    \"claimReviewed\": \"The insured amount for <a href=\\\"https:\/\/www.freightamigo.com\/blog\/international-cargo-insurance-guide\\\" target=\\\"_blank\\\" rel=\\\"noopener noreferrer\\\">international cargo insurance<\/a> <sup id=\\\"ref-6\\\"><a href=\\\"#footnote-6\\\" class=\\\"footnote-ref\\\">6<\/a><\/sup> is typically calculated at 110% of the invoice value\",\n    \"author\": {\n      \"@type\": \"Organization\",\n      \"name\": \"Article Author\"\n    },\n    \"reviewRating\": {\n      \"@type\": \"Rating\",\n      \"ratingValue\": 5,\n      \"bestRating\": 5,\n      \"worstRating\": 1,\n      \"alternateName\": \"True\"\n    }\n  },\n  {\n    \"@context\": \"https:\/\/schema.org\",\n    \"@type\": \"ClaimReview\",\n    \"url\": \"\",\n    \"claimReviewed\": \"All cargo insurance rates are standardized at a fixed percentage regardless of cargo type or route\",\n    \"author\": {\n      \"@type\": \"Organization\",\n      \"name\": \"Article Author\"\n    },\n    \"reviewRating\": {\n      \"@type\": \"Rating\",\n      \"ratingValue\": 1,\n      \"bestRating\": 5,\n      \"worstRating\": 1,\n      \"alternateName\": \"False\"\n    }\n  },\n  {\n    \"@context\": \"https:\/\/schema.org\",\n    \"@type\": \"ClaimReview\",\n    \"url\": \"\",\n    \"claimReviewed\": \"An insurance certificate missing key fields like vessel name, invoice number, or insured amount can result in a denied claim\",\n    \"author\": {\n      \"@type\": \"Organization\",\n      \"name\": \"Article Author\"\n    },\n    \"reviewRating\": {\n      \"@type\": \"Rating\",\n      \"ratingValue\": 5,\n      \"bestRating\": 5,\n      \"worstRating\": 1,\n      \"alternateName\": \"True\"\n    }\n  },\n  {\n    \"@context\": \"https:\/\/schema.org\",\n    \"@type\": \"ClaimReview\",\n    \"url\": \"\",\n    \"claimReviewed\": \"Cargo insurance covers damage caused by insufficient or poor packaging\",\n    \"author\": {\n      \"@type\": \"Organization\",\n      \"name\": \"Article Author\"\n    },\n    \"reviewRating\": {\n      \"@type\": \"Rating\",\n      \"ratingValue\": 1,\n      \"bestRating\": 5,\n      \"worstRating\": 1,\n      \"alternateName\": \"False\"\n    }\n  },\n  {\n    \"@context\": \"https:\/\/schema.org\",\n    \"@type\": \"ClaimReview\",\n    \"url\": \"\",\n    \"claimReviewed\": \"Amazon FBA warehouses do not compensate sellers for goods damaged during international transit\",\n    \"author\": {\n      \"@type\": \"Organization\",\n      \"name\": \"Article Author\"\n    },\n    \"reviewRating\": {\n      \"@type\": \"Rating\",\n      \"ratingValue\": 5,\n      \"bestRating\": 5,\n      \"worstRating\": 1,\n      \"alternateName\": \"True\"\n    }\n  },\n  {\n    \"@context\": \"https:\/\/schema.org\",\n    \"@type\": \"ClaimReview\",\n    \"url\": \"\",\n    \"claimReviewed\": \"The ocean carrier's liability coverage is sufficient to protect the full commercial value of your FBA inventory\",\n    \"author\": {\n      \"@type\": \"Organization\",\n      \"name\": \"Article Author\"\n    },\n    \"reviewRating\": {\n      \"@type\": \"Rating\",\n      \"ratingValue\": 1,\n      \"bestRating\": 5,\n      \"worstRating\": 1,\n      \"alternateName\": \"False\"\n    }\n  }\n]\n<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>International cargo insurance comes in two main types: All Risks (ICC A), which covers nearly all physical loss or damage from external causes, and With Aver&#8230;<\/p>","protected":false},"author":2,"featured_media":11069,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-11074","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/mbmlog.com\/sl\/wp-json\/wp\/v2\/posts\/11074","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mbmlog.com\/sl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mbmlog.com\/sl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mbmlog.com\/sl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/mbmlog.com\/sl\/wp-json\/wp\/v2\/comments?post=11074"}],"version-history":[{"count":1,"href":"https:\/\/mbmlog.com\/sl\/wp-json\/wp\/v2\/posts\/11074\/revisions"}],"predecessor-version":[{"id":11127,"href":"https:\/\/mbmlog.com\/sl\/wp-json\/wp\/v2\/posts\/11074\/revisions\/11127"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mbmlog.com\/sl\/wp-json\/wp\/v2\/media\/11069"}],"wp:attachment":[{"href":"https:\/\/mbmlog.com\/sl\/wp-json\/wp\/v2\/media?parent=11074"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mbmlog.com\/sl\/wp-json\/wp\/v2\/categories?post=11074"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mbmlog.com\/sl\/wp-json\/wp\/v2\/tags?post=11074"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}