GlossaryEN1 min readUpdated: Jun 26, 2026

Insured value

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Last updated: 26 June 2026Published: 27 January 2026

Source: https://iccwbo.org/resources-for-business/glossary/

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Logistics Concept

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Definition & Explanation

The insured value is the declared monetary worth of the cargo at the time a transport insurance policy is taken out; it determines the premium and sets the ceiling on any compensation payable in the event of loss or damage. In practice, it is typically based on the commercial invoice value at the place of shipment, plus freight and ancillary costs. Underinsurance – declaring too low a figure – results in proportionally reduced claim settlements, while deliberate overvaluation may be contested by the insurer. Supporting documents such as commercial invoices and packing lists must be provided to the insurer before the shipment departs. The insured value is distinct from the customs value, which is calculated under separate valuation rules for duty assessment purposes and may differ substantially.

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