June 25, 2024

Shipping valuable goods comes with inherent risks, including loss, damage, and theft. To mitigate these risks, understanding the different types of shipping insurance available is necessary for any business that relies on the safe transport of their products. Here, we discuss the various options to help you choose the best coverage for your shipping needs.

All-Risk Coverage

All-risk coverage is the most comprehensive form of shipping insurance, offering protection against all perils except those explicitly excluded in the policy. This type of insurance is ideal for high-value shipments or fragile goods that require extensive protection.


  • Broad Protection: Covers a wide range of risks.
  • High-Value Items: Ideal for expensive or delicate shipments.
  • Customization: Policies can be tailored to specific needs.

Key Considerations:

  • Exclusions: Be aware of what is not covered.
  • Cost: Typically more expensive due to the broad coverage.

Named Perils Coverage

Named perils coverage protects against specific risks that are listed in the policy. This type of insurance is less expensive than all-risk coverage and is suitable for shipments that do not require extensive protection.


  • Cost-Effective: Lower premiums than all-risk coverage.
  • Specific Protection: Covers defined risks relevant to the shipment.
  • Flexibility: Choose coverage based on the most likely risks.

Key Considerations:

  • Limited Scope: Only covers risks that are explicitly mentioned.
  • Additional Coverage: This may require extra policies for full protection.

Total Loss Coverage

Total loss coverage protects against the complete loss of the shipment, such as if the entire cargo is destroyed in a catastrophic event. This type of insurance does not cover partial losses or damages, making it a more limited but cost-effective option.


  • Cost-Effective: Lower premiums due to limited coverage.
  • Catastrophic Events: Ideal for covering significant losses.
  • Simplicity: Easy to understand and manage.

Key Considerations:

  • Partial Losses: Does not cover minor damages or partial losses.
  • Risk Level: Suitable for shipments with low risk of partial damage.

Free of Particular Average (FPA) Coverage

Free of Particular Average (FPA) coverage protects partial losses only under specific conditions, such as when a shipment encounters severe weather or other extraordinary circumstances. This type of insurance is typically used for ocean freight and provides a balance between cost and coverage.


  • Specific Conditions: Covers partial losses in defined situations.
  • Cost-Benefit: Offers a balance between coverage and premium costs.
  • Marine Focused: Commonly used for maritime shipping.

Key Considerations:

  • Conditional Coverage: Only applicable in specific scenarios.
  • Marine Use: Primarily for ocean freight, not for other transport modes.

Inland Marine Insurance

Inland marine insurance is designed to cover goods transported over land, protecting against risks during road or rail transit. This type of insurance is ideal for domestic shipments and covers a wide range of scenarios that can occur during overland transport.


  • Domestic Focus: Covers goods during road or rail transport.
  • Broad Coverage: Protects against various land-based risks.
  • Versatility: Suitable for diverse shipment types.

Key Considerations:

  • Land-Based: Not applicable for ocean or air freight.
  • Policy Details: Coverage details vary based on the specific policy.

Trust D/C Export & Domestic Packing for Your Shipping Needs

Choosing the right type of shipping insurance protects your shipments and ensures they arrive safely at their destination. Ensure the safe and timely transportation of your goods with D/C Export & Domestic Packing. With over 30 years of experience, we specialize in comprehensive industrial packing, crating, and transportation services across the United States, Canada, and Mexico.

Our services include full truckload freight, air ride dry vans, and flatbeds equipped with GPS tracking and dedicated support for complete peace of mind. Let our expert team handle all the logistics so you can focus on your business. Contact us today at (800) 985-7225 or email us at websitesales@dcexport.com to request a quote and secure your shipment with confidence.