GlossaryEN1 min readUpdated: Jun 19, 2026

insurable value

Accurate declaration of insurable value is the foundation of any cargo insurance arrangement, as it determines both the premium and the maximum indemnity payable in the event of loss or damage.

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Last updated: 19 June 2026Published: 27 January 2026

Source: https://en.wikipedia.org/wiki/Insurable_value

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Logistics Concept

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Definition & Explanation

Accurate declaration of insurable value is the foundation of any cargo insurance arrangement, as it determines both the premium and the maximum indemnity payable in the event of loss or damage. For goods in transit, insurable value typically comprises the invoice price plus freight charges, import duties, and other ancillary costs incurred up to the point of delivery. If the declared value falls short of the true economic interest, the policy is underinsured and the insurer will apply a proportional reduction to any claim. Unlike the sum insured – which is the contractual ceiling agreed in the policy – insurable value reflects what the cargo is actually worth to the insured at the time of loss. Freight forwarders often assist shippers in calculating this figure correctly to avoid disputes at claims stage.

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