Why International Shipping Insurance is Necessary

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Accidents are a part of life, but when an accident occurs are you prepared?  Parents know to always bring extra diapers and drivers on the road make sure they’re protected with car insurance.  The same is true for international shipping, you should always try to be as prepared as possible when the inexplicable happens. While K International Transport always strives to provide the best international shipping services possible, there are certain things beyond our control.  But, just like those extra diapers, there are ways to make the accidents of life more tolerable.  We hate to scare you, but in international shipping several things can happen, a vessel could sink, a car carrier could get into an accident, a container could fall off a ship. For example, in October of 2011 the container ship MV Rena ran aground on the Astrolabe Reef in New Zealand.  The ship had over 1,300 containers aboard.  Although not common, we always recommend our customers purchase some form of international shipping and cargo insurance.

The MV Rena ran aground near the coast of New Zealand in late 2011.  Don’t let international shipping accidents catch you off-guard.  Read on to learn more about the benefits of cargo insurance.

What does international shipping insurance cover?  It all depends on what type of insurance you decide to choose.  Here are the two types of insurance available for customers shipping their cargo overseas in container, ro/ro or by air:

  • Total Loss (FPA- Free of Particular Average)
  • All Risk

Total loss (FPA) insurance covers partial or total losses due to certain catastrophic perils, for example the sinking of a vessel such as what occurred to the MV Rena.

Don’t get taken out to sea if your container is lost during international shipping.  We recommend our customers at the very least purchase “Total Loss (FPA)” cargo insurance. 



All risk insurance covers against the risk of physical loss or damage from any external cause.  All risk has all the same coverage as total loss but also includes coverage for damage.  


Always check with your international shipping company the terms and conditions of the international cargo insurance policy.  When shipping to certain destinations you should also ask if your cargo insurance policy covers against the risk of wars, strikes, riots or civil commotions.


When shipping internationally it is better to be safe than sorry.  As one of the top international shipping companies in the United States, K International always recommends that our customers at least consider Total Loss (FPA) Insurance.  In the game of life, anything is possible, and you should try to be prepared!  For more information on our international shipping insurance or to receive international shipping quotes contact us at: inquiries@kinternational.com.  We can also be reached by phone at 212-267-6400 or Skype: kinternationalny.  Don’t forget to also ask us to quote for international shipping cargo insurance! Skype Me™!