Shipping Company Insurance: Quotes From $50/mo

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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.

General Liability Insurance for Shipping Companies

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

Add-Ons of General Liability Insurance for Shipping Companies

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 

Coverage Limits of General Liability Insurance for Shipping Companies

Shipping companies can get coverage limits of $1 million per occurrence and $2 million in aggregate.


Will My General Liability Policy Protect Me Internationally?

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. 


Professional Liability  Insurance for Shipping Companies

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

Add-Ons of Professional Liability Insurance for Shipping Companies

  • 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

Coverage Limits of Professional Liability Insurance for Shipping Companies

Professional liability insurance for shipping companies will have limits that range between $250,000 and $2 million.

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Commercial Property Insurance for Shipping Companies  

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

Add-Ons of Commercial Property Insurance for Shipping Companies

  • 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

Coverage Limits of Commercial Property Insurance for Shipping Companies

Commercial property insurance provides up to $60,000 worth of coverage for the building and $30,000 for the contents. 


Does Commercial Property Insurance Apply to Rentals?

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. 


A large container ship operated by a shipping company is docked in a body of water.


Business Owner’s Policy for Shipping Companies

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

Add-Ons of Business Owner’s Policy for Shipping Companies

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

Coverage Limits of Business Owner’s Policy for Shipping Companies

A business owner’s policy has a $1 million-$2 million general liability coverage limit and $60,000 commercial property coverage limit. 


Can My Business Owner’s Policy Apply Coverage to Goods Shipped Overseas?

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. 


Tools and Equipment Insurance for Shipping Companies 

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

Add-Ons of Tools and Equipment Insurance for Shipping Companies

  • 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 

Coverage Limits of Tools and Equipment Insurance for Shipping Companies

Your tools and equipment insurance will have coverage limits between $5,000 and $20,000.


How Do I Figure Out How Much Coverage I Need for My Shipping Company?

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 for Shipping Companies  

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:

  • Cover lost wages
  • Pay for medical care
  • Pay for medication
  • Cover rehabilitation expenses so that the employee can work again or find another job
  • Grant lump sum payments do dependents in case the employee in question dies


Do Shipping Companies Need Workers’Compensation?

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 for Shipping Companies

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

What Types of Situations Would Require My Shipping Company to Need Excess Liability Insurance?

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.


Do I Need to Exhaust the Limits of An Underlying Policy Before Excess Liability Kicks In?

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. 


Third-Party Shipping Insurance

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. 


Coverage Limits of Third-Party Shipping Insurance 

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.


What is Proof of Value and How Do I Establish It?

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.

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Shipping Company Insurance Cost

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

Compare Shipping Company Insurance Quotes Online

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Best Shipping Company Insurance Companies

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.


NEXT Shipping Company Insurance

Pros

  • 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 

Cons

  • 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 


The Hartford Shipping Company Insurance

Pros

  • Extensive underwriting experience

  • A- AM Best score

  • Renowned company for workers compensation insurance

Cons

  • 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 


CoverWallet Shipping Company Insurance

Pros

  • Lots of options thanks to their insurance partners

  • Compare quotes online

  • HNOA coverage automatically included in general liability insurance

Cons

  • 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

Our rating: 10/10

Tivly Shipping Company Insurance

Pros

  • Get an insurance certificate the same day

  • Helpful online resources

  • Compare quotes over the phone 

Cons

  • 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 


Thimble Shipping Company Insurance

Pros

  • Quick purchase and quick quotes

  • Professional liability insurance starts at $36 per month

Cons

  • 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 


Hiscox Shipping Company Insurance

Pros

  • Make monthly payments easily without additional fees

  • 14-day refund policy

  • Worldwide coverage

Cons

  • 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

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