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Cost & tax

Cargo Insurance Premium Calculator (CIF × 110% × Rate)

Work out the 110% CIF insured value, the cargo insurance premium, the minimum premium and policy fees from a CIF, CFR or FOB value.

Goods value

Results update as you type.
The value you have
USD

Cover

%

From the insurer's quote for your goods and route.

%

Common practice and the Incoterms 2020 minimum: 10% (= 110% of CIF).

Presets
Cover

All risks except exclusions (e.g. insufficient packing, delay; war and strikes need extra clauses). Minimum for CIP.

USD
USD

Insurance premium

$137.50

Sum insured $55,000.00 × 0.25%

CIF value$50,000.00
Sum insured$55,000.00110%
Total cost$137.50
Share of CIF0.275%

Details

CIF value
$50,000.00
Sum insured (110%)
$55,000.00
Calculated premium (0.25%)
$137.50
Minimum premium
$25.00
Insurance premium
$137.50
Policy fee & stamp duty
$0.00
Total cost
$137.50
A carrier's liability is capped by convention (per package or per kg), far below the value of high-value goods. Cargo insurance covers that gap.

About this calculator

Marine cargo insurance protects the value of goods against damage or loss in transit. Many new shippers treat it as optional, yet a carrier's liability is very limited: under the international conventions it is capped per package or per kilogram, often far below the value of the goods. For CIF and CIP sales, Incoterms 2020 even requires the seller to buy insurance.

Market practice sets the sum insured at the CIF value plus 10%, i.e. 110% of CIF. The extra 10% stands for lost profit and unexpected costs if the goods are damaged. Premium = sum insured × rate, and the rate depends on the goods, packing, route, mode and cover: Institute Cargo Clauses (A) (all risks, with exclusions) costs more than (B) or (C), which cover named perils only. Almost every insurer also sets a minimum premium per policy, plus policy fees and stamp duty.

This calculator can start from a CIF, CFR or FOB + freight value. If you only know CFR, CIF is found with CIF = CFR ÷ (1 − rate × 110%), because the premium itself is part of the CIF value. The result shows the sum insured, the premium before and after the minimum, the total cost and its share of the goods value, so you can compare insurance quotes quickly.

Worked example

A shipment worth CIF USD 50,000, premium rate 0.25%, uplift 10%, minimum premium USD 25:

  • Sum insured: 50,000 × 110% = USD 55,000
  • Premium: 55,000 × 0.25% = USD 137.50 (above the minimum)

With a USD 150 minimum premium and a USD 10 policy fee, the total becomes USD 160. From a CFR price of USD 48,000 at the same rate: CIF = 48,000 ÷ (1 − 0.0025 × 1.1) = USD 48,132.36, premium USD 132.36.

How to use it

  1. Choose the value basis

    Choose whether your value is CIF, CFR or FOB; for FOB also enter the freight.

  2. Enter rate and uplift

    Enter the insurer's premium rate and the uplift (10% by default, so the sum insured is 110% of CIF).

  3. Add minimum and fees

    Enter the minimum premium per policy and any policy fee or stamp duty.

  4. Read the premium

    See the CIF value, the sum insured, the premium, whether the minimum applies and the total insurance cost.

Frequently asked questions

How do I calculate a cargo insurance premium?
Premium = CIF value × 110% × rate. Example: CIF USD 50,000 at 0.25%: sum insured USD 55,000 and premium USD 137.50.
What is a minimum premium?
The lowest premium per policy the insurer accepts. If the calculated premium is USD 137.50 but the minimum is USD 150, you pay USD 150. Small shipments almost always hit the minimum.
What is a reasonable cargo insurance rate?
It varies widely: general containerised cargo is often around 0.1–0.5% of the sum insured, while fragile, high-value goods or risky routes can be much higher. Always ask for a quote for your goods and route.
What is the difference between Institute Cargo Clauses A, B and C?
ICC (A) covers all risks except the exclusions; ICC (B) and (C) cover named perils only, such as fire, sinking or collision. Incoterms 2020: CIF requires at least ICC (C), CIP at least ICC (A).
What if I only know the CFR price?
CIF = CFR ÷ (1 − rate × 1.1). Example: CFR USD 48,000 at 0.25%: CIF = 48,000 ÷ 0.99725 = USD 48,132.36 and premium USD 132.36, exactly the gap between CIF and CFR.

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