GlossaryEN1 min readUpdated: Jun 19, 2026

Sum insured

When a cargo insurance policy is concluded, the sum insured defines the absolute ceiling the insurer will pay under any single claim.

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Last updated: 19 June 2026Published: 27 January 2026

Source: https://de.wikipedia.org/wiki/Versicherungssumme

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Logistics Concept

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Definition & Explanation

When a cargo insurance policy is concluded, the sum insured defines the absolute ceiling the insurer will pay under any single claim. This contractual maximum applies regardless of the actual extent of the loss: if damage exceeds the sum insured, the policyholder bears the surplus; if it falls short, only the actual loss is indemnified. In transport insurance, the sum insured is usually aligned with the declared value of goods, but can also be set on a per-shipment or blanket basis. It must be distinguished from insurable value, which reflects the cargo's true economic worth and serves as the reference point for correctly setting the sum insured. An understated sum insured creates underinsurance and triggers proportional claim reductions.

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