You want to be vigilant for unexpected situations that result in the financial ruin of your shipping business. The mistakes of your freight brokers can lead to lawsuits. Moreover, you must reimburse clients if their cargo gets lost or damaged during the trip. Adopting a shipping company insurance policy guarantees that your company can survive whatever storms come. Continue reading to find out more about shipping insurance.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $300,000/$1,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $100,000 | $100,000 | $5,000 | $100,000 | $1,000,000 |
| Waiver of subrogation included? | Yes | No | Included | Can be included | No |
| Hired/non-owned auto liability coverage included? | Yes | No | Excluded | Can be included | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Can be included | Can be included |
Shipping companies will benefit from a general liability policy. This will protect the company from third-party claims like property damage and injury your business operations may cause. Common situations to use this coverage include:
Your shipping service injures a member of the general public who files a lawsuit to receive compensation for medical care
A customer slips and falls on your shipping company’s business headquarters while negotiating a contract
Look out for add-ons to your general liability policy, such as:
Marine liability insurance–Protects your business against damage or injury to your business property due to water-based incidents.
Inland marine insurance–Protects business property that’s transported over land. This can include equipment, products, and materials that got lost or damaged during the trip due to theft, fire, vandalism, and other covered perils
Shipping companies can get coverage limits of $1 million per occurrence and $2 million in aggregate.
No. However, you can find general liability insurance on international shipping that Hiscox underwrites. This doesn’t only cover claims due to covered perils in the US but those abroad.
| CoverWallet (Best) | NEXT | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $1,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $2,000,000 |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | Yes | Yes | No |
| Deductible | $500 | $500 | $500 | $500 | $500 |
Shipping companies will use professional liability insurance to protect them from costly mistakes, oversights, or negligence that result in a lawsuit. Examples include:
A shipping company sends a product to the wrong location and the client experiences financial losses
A client receives the wrong product through an oversight in the shipping system
Extended reporting period–An extended reporting period endorsement allows you to file a claim on a professional liability policy that has expired
Additional insured–Adds coverage to people or organizations not on the original insurance policy
Professional liability insurance for shipping companies will have limits that range between $250,000 and $2 million.
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| CoverWallet | NEXT (Best) | Thimble | The Hartford | Hiscox | |
|---|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $340,000 | $25,000/$500,000 | $35,000 | $25,000 |
| Contents coverage limit (minimum) | $50,000 | $35,000 | $25,000/$500,000 | $35,000 | $15,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Included |
| Accounts receivable | Excluded | Excluded | $5,000/$10,000 | Excluded | Included |
| Money and securities | Excluded | $2,500 | $1,000 | Excluded | Included |
| Lock and keys | Excluded | $2,500 | Excluded | Excluded | Included |
| Business interruption floater | Excluded | Included | Included | Excluded | Included |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Included |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Excluded | Excluded |
Commercial property insurance protects your building and its contents from weather events, theft, or vandalism. Example situations include:
Someone breaks into your headquarters and steals your computers
A fire breaks out in your business offices and damages the property inside your building
Flood insurance–Protects your shipping company from the dangers of flood waters, which might be excluded by default from your policy
Pollutant cleanup and removal–This covers the cost of removing pollutants from land or water that has damaged your property
Commercial property insurance provides up to $60,000 worth of coverage for the building and $30,000 for the contents.
Yes, commercial property insurance will still apply to a commercial building you’re currently renting. In fact, the landlord may require you to purchase this policy before signing the lease agreement.
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| CoverWallet | NEXT (Best) | Thimble | The Hartford | Hiscox | |
|---|---|---|---|---|---|
| General liability aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 |
| Commercial property coverage limit | $50,000 | $320,000 | $25,000/$500,000 | $35,000 | $75,000 |
| Optional policies can be added? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes | Yes | Yes |
| BOP discount? | Yes | Yes | Yes | Yes | Yes |
A business owner’s policy combines multiple coverages into one policy. This includes general liability and commercial property insurance. Example situations include:
A criminal vandalizes your business building, and you need financial help cleaning it up
A powerful lightning strike causes a fire to break out on your property, causing extensive damage
A business owner’s policy has many add-ons. Shipping companies will want to consider the following:
Cyber liability–Adds financial protection for data breaches and cyber attacks on your shipping company
Commercial auto–Covers vehicles used for work, such as meeting with clients and picking up supplies
A business owner’s policy has a $1 million-$2 million general liability coverage limit and $60,000 commercial property coverage limit.
Your bundled insurance for shipping goods overseas is not complete with just a business owner’s policy. BOP only covers third-party liability claims and damage to your property. You might need third-party shipping insurance or cargo insurance.
| NEXT | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|
| Aggregate limit | $3,000/$10,000 | $2,500/$5,000 | $15,000/$25,000 | $5,000-$10,000 |
| Covers hired and borrowed equipment? | $3,000/$10,000 | $2,500/$5,000 | No | Yes |
| Miscellaneous equipment also covered? | $5,000/$10,000 | No | Yes | Yes |
| Offered as an endorsement to general liability insurance? | Yes | Yes | Yes | Yes |
| Deductible | $500 | $500 | $0 | $0 |
Tools and equipment insurance covers the repair or replacement of damaged and stolen equipment you use in business operations. Here are some situations where you can use this policy:
Someone stole your employees' tools while they’re taking a break
A thief broke a part of your forklift to get the battery. You have to repair the part in question and replace the battery so the forklift can run again
Equipment breakdown–Protects your shipping company property from internal physical forces like a mechanical failure and power surge
Earthquake insurance–Protects your tools or equipment from earthquake damage, which might be excluded
Your tools and equipment insurance will have coverage limits between $5,000 and $20,000.
List all your equipment to determine their actual value. After that, you can talk to an insurance company so they can help you decide how much coverage is appropriate for your business.
Workers' compensation insurance is a policy an employer uses to protect employees from financial hazards resulting from a work-related injury or disease. This insurance will do the following:
Yes, shipping companies with employees must purchase this policy. Workers comp laws exist. They have provisions that impose severe fines and penalties to employers who don’t purchase workers compensation insurance.
Excess liability insurance protects your shipping company by adding additional coverage to an underlying policy. You can use excess liability to boost a single policy beyond the policy in instances such as:
Your general liability insurance has run out but a disgruntled client filed a claim against it
A damaging lawsuit leaves you with more damages than your professional liability insurance can handle
If you transport hazardous materials, you may need excess liability coverage because of the substantial risks you could face. The National Safety Council found that exposure to harmful substances caused over 424,000 nonfatal injuries and illnesses in 2020.
Excess liability insurance will only kick in if an underlying policy can’t fully cover a claim or run out of coverage. If your primary policy provides enough coverage, there’s no need to claim excess liability coverage from the insurance company.
A third party shipping insurance is a coverage for the freight or cargo shipped. However, this doesn’t come from a shipping company. Instead, it comes from private insurers. The advantages of this option are competitive rates, higher payouts, and more comprehensive protection.
The best third party shipping insurance can insure up to $150,000 per package. This limit will depend on the insurer and the cost of your policy.
Proof of value affects how much your package can be insured. You must use an invoice, online receipt, or sale certificate to prove your insured value. This proof is necessary for the insurer to establish coverage on a shipment.
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| General liability insurance | $44 | $528 | $0-$500 |
| Professional liability insurance | $49 | ||
| Commercial property insurance | $78 | $936 | $1,000-$2,000 |
| Business owner’s policy | $105 | $1,260 | |
| Tools and equipment insurance | $47 | $564 | $1,500 |
| Commercial auto insurance | $67 | $804 | $1,000-$2,000 |
| Workers compensation insurance | $94 | $1,128 | $2,000-$5,000 |
The average shipping company insurance cost is $44 per month or $528 per year for a $1 million general liability insurance. Factors that affect the cost of premiums are claims history, business history, policy limits, revenues, location, and number of employees. Here’s a table showing the cost of a $1 million general liability insurance from companies we recommend:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $25 | $300 | Best overall; Fastest general liability insurance for shipping companies |
| The Hartford | $29 | $348 | Shipping insurance backed by experience |
| CoverWallet | $30 | $360 | Comparing shipping company insurance quotes online |
| Tivly | $33 | $396 | Comparing shipping company insurance quotes over the phone |
| Thimble | $35 | $420 | On-demand insurance for shipping companies |
| Hiscox | $37 | $444 | Customized shipping company insurance |
Get all the best quotes from leading providers in a click of a button!
We have the reviews of some of the best shipping insurance companies below. Each review explains the pros and cons of each company and what distinguishes them as insurance providers.
Best overall
Issues an online proof of insurance instantly
Fastest general liability insurance for shipping companies
Great customer service and reputation
Excellent rates
Outstanding value for money
Get a 10% discount if you buy two or more policies
Couldn’t find any
NEXT is an insurance company that offers policies 100% online. AM BEST rates this company A-. Shipping companies will find helpful policies like general liability, business owner’s policy, and workers' compensation. The company also maintains a B+ score with the Better Business Bureau.
Best for: Best overall; Fastest general liability insurance for shipping companies
Average cost: $25 per month
Our rating: 10/10
Extensive underwriting experience
A- AM Best score
Renowned company for workers compensation insurance
Some may find customer service options limited
The Hartford is a long-standing insurance company with a track record of over 200 years. They offer policies your shipping company can easily avail. This includes general liability insurance, commercial property insurance, commercial auto insurance, business owner’s policy, and workers compensation insurance.
Best for: Shipping insurance backed by experience
Average cost: $29 per month
Our rating: 10/10
Lots of options thanks to their insurance partners
Compare quotes online
HNOA coverage automatically included in general liability insurance
Not an insurance company but an insurance broker
CoverWallet offers your shipping company an advantage thanks to tailored policies that go well with shipping services. You can easily compare the quotes of different carriers through this company’s online platform. Once you’re insured, CoverWallet gives access to the MyCoverWallet app. You can use this to view manage your policies and view their limits.
Best for: Comparing shipping company insurance quotes online
Average cost: $30 per month
Get an insurance certificate the same day
Helpful online resources
Compare quotes over the phone
You must talk to an agent for a quote
Tivly is an insurance solutions platform that helps connect buyers and sellers of insurance. They offer a fantastic variety of options for shipping companies. Policies you can purchase are general liability, commercial property, commercial auto, excess liability, and more. Call now to compare quotes over the phone.
Best for: Comparing shipping company insurance quotes over the phone
Average cost: $33 per month
Our rating: 10/10
Quick purchase and quick quotes
Professional liability insurance starts at $36 per month
Customers need to do their research to make sure they aren’t overpaying
Another excellent choice for shipping companies is Thimble. Thimble provides flexibility in policy duration. For one, you can purchase this company’s general liability insurance as a short-term policy that lasts for hours, days, weeks, or months.
Best for: On-demand insurance for shipping companies
Average cost: $35 per month
Our rating: 10/10
Make monthly payments easily without additional fees
14-day refund policy
Worldwide coverage
Business owner’s policy isn’t available in every state
Hiscox is your premier tailored insurance company. Their agents work with you to ensure your shipping company gets maximized and efficient coverage that is smart and makes sense. Hiscox is rated highly by financial rater Fitch, receiving an A for long-term financial strength.
Best for: Customized shipping company insurance
Average cost: $37 per month
Our rating: 10/10
1 / 5
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
1 / 5
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
1 / 5
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
5 / 5
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
5 / 5
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
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