SNEDDENS - New Zealand's No.1 International Freight & Shipping Specialist

Cargo Insurance

Cargo Insurance Guidelines

The decision of whether or not to insure your freight is not always a clear-cut, simple choice. There are many factors to consider, such as the total value of the goods shipped, the mode of transportation, the shipping origin and destination. Once the determination is made, the next question is how to insure the shipment. To assist you in your evaluation, the options below outline the types of cargo insurance coverage available.

mans hand under a box reading insured depicting cargo insurance

Legal Liability

If you choose not to pay for cargo insurance on your shipment, the goods shipped are automatically covered under legal liability standard to the transportation industry.

Sneddens offers insurance policies on all cargo travelling within our international network.

  • Non-Fragile commercial cargo up to value of 30kNZD has a premium of 125NZD and excess of 100NZD.

Outside of this range please request pricing from your representative – we can very quickly and easily advise you of insurance costs.“

“We strongly encourage you to discuss insurance options with us prior to arranging your shipment.”

Insurance of Goods Only

To ensure your shipment for the replacement of the goods shipped in case of total or partial loss or damage, request insurance for the replacement value of the goods = commercial invoice value.

Sneddens sells cargo insurance for $0.30/$100.00 insured value with a $120.00 minimum for general cargo (not personal effects).

Sample Insurance Calculation:
Commercial Invoice Value = $10,000.00, Insurance Cost: $120.00
Commercial Invoice Value = $45,000.00 Insurance Cost: $135.00

Insurance of Goods + Shipping Charges

To insure your shipment for the replacement of the goods shipped in case of total or partial loss or damage plus the cost of shipping the freight, request insurance for the CIF value of the shipment.

CIF + 10% Terms

  • Commercial invoice value + insurance costs + freight= CIF value x 110% (10% for any unforeseen costs or charges)

This type of cargo insurance covers your shipping costs too in the case of damage or loss where the repair or replacement must be done somewhere other than the consignee’s location. Recoverable freight charges may be prorated based on the portion of the shipment damaged in the case of partial loss/damage.

If there is damage and the repair occurs at the final destination of the goods (consignee’s facility), no freight charges are refundable.

For most destinations and commodities, Sneddens sells cargo insurance for $0.30/$100.00 insured value with a $120.00 minimum.

Sample Insurance of Goods + Freight Charges

  • Commercial Invoice value = $40,000.00
  • Freight Cost: $500.00
  • Total CFR Value = $40,500.00 x 110% = $44550.00 = Amount to Insure
  • Insurance Cost = $133.65

If you have any further questions, please feel free to contact a Sneddens representative.

Under/Over Insurance

It is important to insure goods for the proper value. If a shipment is underinsured then the claim will only be paid to the percentage that the shipment was insured.


  • Goods Value: $10,000
  • Insurance Value: $5,000
  • Damaged repair cost: $4,000

The insurance was purchased at 50% of the value of the goods; therefore, 50% of the claim amount will be paid.

  • Claim Payment: $4,000 x 50% = $2,000 payment

If a shipment is overinsured you are not able to get coverage beyond the repair/replacement costs. The result is an overpayment of the premium.

What to do When There is Damage

Proper notation on shipping documents and notification to the appropriate parties is essential to ensure the ability to process a claim. Like all insurances, payment of the premium and freight charges is required in order for coverage to be confirmed and a claim to be filed and ultimately settled. As an example, if you don’t pay your auto insurance and get into an accident then you don’t have any coverage.

If damage is noted on the bill of lading at the time of delivery, then the claim must be submitted in full within 270 days of actual delivery. It is not necessary to refuse a shipment if proper damage is noted.Sneddens should also be notified immediately.

If damage is not notated on the bill of lading at time of delivery (concealed damage), then Sneddens must be notified within 24 hours of delivery.

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We invite you to contact us for more information about our company and services. Call us on 0800 76 33 33, email

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