Freight Insurance Calculator
Estimate your cargo insurance premium based on declared value and commodity type. Select your commodity, enter the shipment value, and see your estimated premium, cost per $100, and deductible instantly.
How to use: Enter your cargo value, select your commodity type, and choose a coverage level. The calculator returns your estimated premium and the deductible for each option.
Why cargo insurance matters
Carrier liability for LTL freight is limited to $0.50 per pound under standard released value. A 500-pound pallet of electronics worth $25,000 would only be covered for $250 under carrier liability. Freight insurance bridges that gap by covering the full declared value of your goods minus the deductible, protecting your business against the full financial impact of loss or damage.
Without cargo insurance, a single damaged or lost shipment can wipe out months of margin. Insurance premiums typically cost less than 1% of the cargo value, a small price compared to absorbing the full replacement cost of uninsured freight.
Coverage options and commodity rates
Insurance rates vary by commodity type because different goods carry different risk profiles. General freight (standard packaged goods that are not fragile or perishable) carries the lowest rates, typically around $0.50 per $100 of declared value. Electronics and sensitive equipment run higher at roughly $0.80 per $100 due to their susceptibility to shock and vibration damage.
Fragile goods like glass, ceramics, and artwork typically cost around $1.00 per $100, while perishable items such as food and pharmaceuticals carry the highest rates at approximately $1.20 per $100 due to temperature sensitivity and spoilage risk. Most policies carry a minimum premium of $25 and a deductible of 2% of the declared value or $250, whichever is greater.
Freight insurance coverage tiers
How Warp simplifies freight insurance
Every Warp shipment includes Carmack Amendment carrier liability up to $100,000 plus a $75K FMCSA surety bond at no extra cost. For higher-value freight, Warp partners with Falvey to offer optional cargo coverage up to $1M per shipment as an add-on at checkout. There is no separate application, no waiting for underwriting approval, and no need to manage a standalone insurance policy. Add coverage with a single click and receive an instant policy with a downloadable certificate of insurance.
If you need to file a claim, Warp handles the process on your behalf. Coverage is available for all commodity types and shipment modes, so you can protect every load without managing multiple insurance providers.
Freight insurance FAQ
What does freight insurance cover?
Freight insurance (also called cargo insurance or shippers interest insurance) covers the declared value of your goods against loss, damage, or theft during transit. Unlike carrier liability, which is limited to $0.50 per pound for LTL and varies by mode, freight insurance covers the full declared value of your shipment minus the deductible. It protects against risks like forklift damage, weather events, accidents, and theft.
How is freight insurance cost calculated?
Freight insurance premiums are calculated as a percentage of the declared cargo value. The rate depends on the commodity type. Fragile, perishable, and high-value goods carry higher rates than standard freight. Most policies have a minimum premium (typically $25) and a deductible (typically 2% of the declared value or $250, whichever is greater). The rate per $100 of declared value typically ranges from $0.50 to $1.20 depending on the commodity.
How does Warp offer freight insurance?
Every Warp shipment includes Carmack Amendment carrier liability up to $100,000 plus a $75K FMCSA surety bond at no extra cost. For additional protection, Warp partners with Falvey to offer optional cargo coverage up to $1M per shipment as an add-on at checkout. Add it with a single click, no separate application, no waiting for underwriting. You receive an instant policy and a downloadable certificate of insurance. Coverage is available for all commodity types and shipment modes.
How much does freight insurance cost?
Freight insurance typically costs between 0.5% and 3% of the declared cargo value, depending on commodity type and risk profile. Standard packaged goods run about $0.50 per $100 of value, while fragile or perishable items can reach $1.20 per $100. Most policies carry a minimum premium of $25 per shipment. For a $50,000 shipment of general freight, expect to pay roughly $250 to $500 for full value coverage. Warp includes $100K carrier liability at no extra cost on every shipment.
What is the Carmack Amendment and how does it limit carrier liability?
The Carmack Amendment is a federal statute that governs carrier liability for interstate freight shipments in the United States. Under Carmack, the carrier is liable for the actual loss or damage to goods it transports, but most carriers limit that liability through released value tariffs. For LTL, the standard released value is $0.50 per pound, meaning a 1,000-pound pallet is covered for only $500 regardless of its actual value. For FTL, carrier liability varies by contract. The Carmack Amendment does not replace freight insurance. It sets a legal framework, but the per-pound limits leave most shippers significantly underinsured without additional coverage.
What is declared value vs insured value in freight?
Declared value is the amount the shipper states on the bill of lading as the worth of the goods. It determines the maximum carrier liability if a claim is filed, but it is not insurance. Insured value is the amount covered by a separate cargo insurance policy purchased from an insurer. The key difference: declared value relies on the carrier to pay claims (subject to their liability limits and tariff rules), while insured value is backed by an independent insurance policy with its own claims process. For high-value freight, cargo insurance provides faster, more reliable claim resolution than relying on carrier liability alone.
Do I need freight insurance for LTL shipments?
Whether you need freight insurance for LTL depends on the value of your goods relative to the carrier liability limit. Standard LTL carrier liability is $0.50 per pound. If your freight is worth more than $0.50 per pound (which most commercial freight is), the carrier liability will not cover the full replacement cost. For example, a 500-pound pallet of electronics worth $15,000 would only be covered for $250 under standard carrier liability. If losing that $14,750 gap would materially impact your business, you need freight insurance. Warp includes $100K carrier liability on every shipment, which covers the vast majority of LTL freight without additional insurance.
What does freight insurance NOT cover?
Freight insurance typically excludes losses caused by inherent vice (the natural tendency of goods to deteriorate), shipper-caused packaging failures, government seizure, war, nuclear events, and intentional acts. Most standard cargo policies also exclude losses from delay (even if the delay causes spoilage), insects or vermin, and pre-existing damage. Temperature-controlled freight often requires a separate endorsement for spoilage coverage. Contraband and illegal goods are never covered. Always review your policy exclusions before shipping high-value or sensitive commodities.
Protect every shipment with one click
Every shipment includes $100K carrier liability. Optional Falvey coverage up to $1M available at checkout with one click.