How to insure your cargo for export?

How to insure your cargo for export?

New exporters often need help insuring their goods. However, perishable goods insurance while exporting is essential in international trade. It protects your cargo from potential risks and uncertainties during transit. Export insurance provides coverage against loss, damage, and other perils that may occur while your goods are in transit from one country to another.

This robust coverage offers financial protection during unforeseen circumstances and helps mitigate potential losses. Here, we delve into the importance of export cargo insurance and its significance, especially when dealing with delicate shipments like perishable goods. We'll explore the available insurance types, including insurance for export shipment and perishable goods insurance, the inclusions and exclusions to be aware of, and even the necessary document requirements that ensure a seamless insurance process for your export goods.

Export cargo insurance is crucial for businesses involved in international trade. In India, insurance for export is vital to protect against potential losses during transit. There are various types of export insurance available, tailored to different needs and goods. For instance, insurance for export shipment ensures coverage from the point of departure to the final destination. Marine insurance for export goods is particularly important for goods transported by sea, offering protection against maritime risks. Additionally, perishable goods insurance is essential for businesses exporting items that can spoil, ensuring they are covered in case of delays or damage. It's important to insure cargo properly to safeguard the financial interests of companies dealing in export goods. Hence, selecting the right insurance export goods policy can significantly mitigate risks and provide peace of mind to exporters.

Need for Insurance for exports

Export insurance is crucial due to the inherent risks involved in international trade. Exporters face a range of uncertainties during the transportation of their goods. It includes damage, loss, theft, accidents, natural disasters, political unrest, and delays. These risks can lead to substantial financial losses if not adequately protected. It provides a safety net by offering coverage against these perils.

Having export insurance is necessary to mitigate potential risks and ensure business continuity. It offers financial protection, allowing exporters to recover the value of their goods or receive compensation for any losses incurred. This security helps maintain cash flow, protects profit margins, and safeguards the overall financial health of the exporting business.

Furthermore, export insurance enhances the credibility of exporters in the international market. It demonstrates professionalism and reliability to buyers, partners, and stakeholders, building trust and fostering long-term relationships. Many international trade contracts also require exporters to have insurance coverage, ensuring compliance with contractual obligations.

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Considering the unpredictable nature of global trade, insurance for export goods in India is an essential tool that provides peace of mind and safeguards the interests of exporters in an increasingly interconnected and dynamic business environment.

Types of Insurance for Exports

Several types of insurance are available for exports, depending on the nature of the goods and the mode of transportation. Let's explore some common types of export insurance:

Types of Insurance for Exports, Citrus freight
  • Marine Cargo Insurance

    This type of insurance covers goods during their transportation by sea, including loading, unloading, and storage at ports. It protects against sinking, fire, collisions, piracy, and other maritime perils.

  • Air Cargo Insurance

    Air cargo insurance covers goods transported by air. It protects against risks such as accidents, theft, damage, or loss during loading, unloading, or while in transit.

  • Land Transportation Insurance

    It covers goods transported overland, such as by truck or train. It protects against accidents, theft, damage, or loss during transit.

  • War and Strikes Risks Insurance

    This specialized insurance provides coverage for goods that may be affected by war, civil unrest, political risks, or acts of terrorism. It offers protection against damage, loss, or confiscation of goods in such situations.

  • Empty Container Insurance

    It covers the container damage; the insurance renews on a daily basis; and you can choose insurance coverage for empty containers if you discover them empty.

Where can we get insurance for goods exports?

You can obtain insurance for goods exported from companies specializing in international trade and cargo insurance. These companies offer export insurance policies tailored to the specific needs of exporters, providing coverage against various risks during transit.

One such company is Citrus Freight. You can use their booking app, Citrus, for perishable exports. They offer a comprehensive solution for shipping perishable cargo. With competitive rates, vessel schedules from top shipping lines, and confirmed delivery orders, Citrus ensures a hassle-free experience.

Their cloud-based platform provides end-to-end solutions, including customs clearance, surface transport, insurance, and trade finance. The app also offers quick rates and schedules, 24/7 expert consultation, and updates via WhatsApp and email. Additionally, Citrus provides an easy-to-use interface for purchasing marine insurance for perishable products, ensuring the safety and security of shipments.

Inclusions and Exclusions under export & import insurance

Inclusions and exclusions are essential aspects to consider when selecting export insurance. While the specific coverage may vary depending on the insurance provider and policy, some standard inclusions and exclusions under export insurance include:

General Inclusions:

  • Loss or damage to goods during transportation
  • Theft or pilferage of goods
  • Damage caused by accidents, mishandling, or improper stowage
  • Loss or damage due to natural disasters like storms, earthquakes, or floods
  • General average and salvage charges

General Exclusions:

  • Loss or damage due to improper packaging or inadequate protection of goods
  • Delay in transit without any physical loss or damage to the cargo
  • Loss or damage caused by willful misconduct or negligence
  • Loss or damage due to the inherent vice or nature of the goods
  • Losses arising from wars, nuclear events, or government actions

Documents Requirements

When insuring goods for export, insurance providers typically require certain documents. These documents may include:

  • Commercial invoice
  • Packing list
  • Bill of lading or airway bill
  • Insurance declaration form
  • Export license or permits (if applicable)
  • Other supporting documents related to the shipment


Now, let's discuss the benefits of export insurance for exporters, including:

  • Enhanced Credibility

    Insuring your goods demonstrates professionalism and reliability to buyers and partners. It instills confidence in your export-import business and can be a competitive advantage in the international market, attracting more customers and fostering long-term relationships.

  • Risk Mitigation

    Export insurance protects against unforeseen events, minimizing financial losses associated with damaged or lost goods during transit. It allows exporters to focus on their core business activities without worrying about potential risks.

  • Financial Security

    With export insurance, exporters can recover the value of their goods or receive compensation for the loss or damage incurred. This financial security helps maintain cash flow and business continuity, especially when the exporter cannot afford the loss.

  • Contract Compliance

    Export insurance is often a requirement in international trade contracts. Exporters fulfill their contractual obligations and avoid potential legal disputes or penalties by having the necessary insurance coverage.

  • Flexibility and Customization

    You can request tailored export insurance policies that meet your specific requirements. You can consider the nature of the goods, the destination, and the mode of transportation in your policy. This flexibility allows exporters to choose the most suitable coverage for their needs.


Insuring goods for export is a crucial aspect of international trade. Export insurance protects exporters from potential financial losses due to various risks during transit. It provides peace of mind and enhances the credibility of exporters. By understanding the types of import export insurance available, the inclusions and exclusions, and fulfilling the necessary document requirements, exporters can safeguard their businesses and ensure smooth and secure international transactions. You can use Citrus, India's first reefer container booking app for perishable exporters.