Logistics 101
Freight Insurance Calculator
Use the Freight Insurance Calculator to estimate the cost of adding optional insurance cover to your shipment.
Insurance can be added during booking for eligible goods valued between £100 and £50,000. £50,000 is the maximum value for which an instant online insurance quote is available. Higher cover may be arranged on request.
The calculator estimates the insurance cost based on the nature and declared value of the goods. It may also flag descriptions containing keywords associated with restricted, prohibited or potentially excluded goods.
The result is an estimate only. Insurance eligibility depends on the goods, their condition, packing, selected transport service and the applicable policy terms.
Your estimate will appear here
Describe your goods and enter their value, then press Calculate.
Add Freight Insurance When You Book
Freight insurance can provide additional protection against eligible loss or damage during transit.
It is optional and can be particularly useful for commercial stock, machinery, equipment, spare parts, tools, samples and other shipments where replacing lost or damaged goods would be costly.
Insurance should be selected during booking, where available. The goods must be accurately declared, properly packed and accepted for the selected transport service.
Add Freight Insurance?
Without additional insurance, compensation for lost or damaged goods is generally restricted by the carrier’s liability terms. These limits are frequently based on shipment weight rather than the actual value of the goods.
Additional freight insurance can help reduce the financial difference between the limited amount recoverable from the carrier and the value of the goods, subject to the insurance policy.
Insurance does not replace proper packing or accurate declarations. Both remain essential.
What Happens If I Don’t Add Insurance?
If you choose not to purchase additional freight insurance, any compensation will normally be assessed under the applicable carrier liability terms.
Carrier liability depends on the transport mode, route, applicable convention and contractual conditions.
Some common liability benchmarks are:
| Transport type | Illustrative liability limit |
|---|---|
| UK domestic road freight | £1,300 per tonne (£1.30 per kg) where applicable RHA Conditions or equivalent agreed terms provide that limit |
| International road freight | Generally 8.33 Special Drawing Rights (SDR) per kg under the applicable CMR Convention |
| International air freight | Generally 26 SDR per kg under the Montreal Convention, where applicable |
SDR is an international unit of account whose value changes against sterling.
These are general benchmarks, not guaranteed compensation amounts or a statement that every Pallet2Ship carrier uses those exact terms. Sea freight and other services may be subject to different conventions and contractual limits.
Example — A £5,000 Pallet Weighing 100 kg
Suppose a UK pallet contains goods worth £5,000 and weighs 100 kg.
If a carrier’s applicable liability limit is £1.30 per kg:
100 kg × £1.30 = £130
The carrier’s potential liability could therefore be limited to approximately £130, even though the goods are worth £5,000.
This is an illustration of a liability ceiling, not a guaranteed payment. Actual compensation depends on the applicable conditions, the circumstances of the loss or damage and the evidence supporting the claim.
Additional freight insurance may provide broader financial protection where the goods and loss are covered by the selected policy.
Who Can Add Freight Insurance?
Insurance is normally added by the person or business arranging the shipment.
This may be the sender, receiver or another party responsible for the booking.
The person selecting insurance should ensure that:
- The goods are described accurately.
- The correct value is declared.
- The condition of the goods is stated correctly.
- The shipment is accepted by the selected carrier.
- The insurance terms and exclusions have been checked.
What Freight Insurance Can Cover
Freight insurance may cover eligible loss or physical damage during transit, subject to the policy terms, limits and exclusions.
The scope of cover depends on:
- The nature of the goods
- Whether the goods are new or used
- Their declared value
- The transport service and route
- The packing and handling requirements
- The policy conditions and exclusions
Acceptance for transport does not automatically establish insurance eligibility.
Goods That May Be Eligible for Cover
Insurance may be available for many types of commercial goods, including:
- Commercial stock and packaged products
- Machinery parts and industrial components
- Tools and equipment
- Clothing and textiles
- Automotive parts
- Business supplies and samples
Eligibility depends on the precise goods, their condition, packing and the applicable insurance terms.
Fragile, high-risk, used or restricted goods may have limited cover or may be excluded.
New Goods, Used Goods and Personal Effects
Insurance terms may differ depending on the condition and nature of the goods.
New goods
New goods may qualify for loss and damage cover where the policy conditions are satisfied.
Used goods
Used goods may qualify for more limited cover. Under Pallet2Ship’s existing published conditions, cover for used goods is generally restricted to total loss rather than partial damage. The applicable insurance terms must be checked before purchasing cover.
Personal effects
For imports to and exports from EU countries, personal effects are not accepted through standard pallet services and may be sent using our DHL service only.
Cover for used personal effects is usually limited and may be restricted or unavailable depending on the service. Always check before booking if you are sending used personal belongings.
Used furniture must be professionally packed by a removal company where accepted for transport. A detailed inventory or Proforma Invoice may also be required.
The ability to transport personal belongings does not automatically mean insurance is available.
Goods That May Not Be Covered
Certain goods may be restricted, excluded or subject to special insurance conditions.
Depending on the policy, these may include:
- Antiques
- Artwork
- Jewellery
- Glass and porcelain
- Fragile goods
- Personal effects
- Certain high-value or specialist items
The exact restrictions and exclusions are determined by the applicable insurance terms.
Check our Prohibited & Restricted Items page for carriage restrictions. Insurance restrictions may differ from carrier acceptance rules.
Packing Requirements
Correct packing is essential when sending insured goods.
Shipments must be suitably protected against the normal handling involved in collection, loading, road transport, terminals, airports, ports and final delivery.
Poor packing, unstable pallets, insufficient protection or movement inside the packaging can affect a claim.
Before collection:
- Use suitable outer packaging or a strong pallet or crate.
- Protect fragile or vulnerable sections.
- Secure goods against movement.
- Strap and wrap palletised freight properly.
- Avoid overhang where possible and declare unavoidable overhang.
- Use moisture protection where appropriate.
- Ensure labels remain visible.
- Record the packed dimensions and weight accurately.
- Keep photographs of the completed packaging.
For detailed advice, see our How to Prepare a Pallet guide.
What Freight Insurance Does Not Cover
Freight insurance does not cover every type of loss.
Depending on the policy, cover may be restricted or unavailable for:
- Incorrectly declared goods
- Inadequate or unsuitable packing
- Goods specifically excluded by the policy
- Unsupported or incorrect declared values
- Damage to used goods where only total-loss cover applies
- Delay, loss of profit or consequential loss
- Certain excluded transport or handling circumstances
If goods are insured for less than their correct value, compensation may be reduced under the applicable policy conditions.
Customers should declare the actual value accurately and review the terms before selecting insurance.
How to Use the Insurance Calculator
The calculator estimates the cost of optional insurance using two main details:
- Nature of goods
- Declared value of goods
Describe Your Goods Clearly
Use ordinary, specific words to describe what you are shipping.
For example:
- Office chairs
- Brake discs
- Electric motors
- Clothing
- Machinery parts
Avoid entering model numbers, part numbers, product references or internal stock codes instead of an actual description.
A description such as “brake discs” is more useful for identifying the type of goods than a manufacturer’s reference number alone.
Restricted-Goods Checks
The calculator may identify keywords associated with prohibited, restricted or potentially excluded goods.
A warning does not necessarily mean the goods cannot be transported. It may mean the shipment requires additional checks or that insurance is restricted or unavailable.
If you are unsure whether your goods can be transported or insured, contact Pallet2Ship before booking.
The calculator provides an estimated insurance price. A quotation is not confirmation that cover has been issued.
How Much Does Freight Insurance Cost?
The insurance price depends mainly on the nature and declared value of the goods, together with the applicable insurance conditions.
Higher-value or higher-risk goods may cost more to insure, and some goods may require manual review or may not be eligible.
Enter an accurate description and value into the calculator to see the estimated insurance cost.
For goods valued above £50,000, contact Pallet2Ship to request a tailored quotation from the underwriters.
How to Add Insurance to Your Shipment
Insurance can be selected during the booking process where available for the goods and chosen service.
When booking, provide:
- An accurate description of the goods
- Their correct value
- Whether they are new or used
- Their packed dimensions and weight
- The correct collection and delivery details
- Any relevant fragile, restricted or unusual characteristics
If you have already submitted a booking and then decide you require insurance, contact Pallet2Ship as soon as possible.
Where the shipment has not yet been collected and the goods are eligible, additional cover may be possible by arrangement.
Insurance cannot be assumed until it has been confirmed. Cover cannot normally be added retrospectively after collection.
How to Make an Insurance Claim
If your shipment is lost or arrives damaged, report the problem to Pallet2Ship immediately.
If Goods Arrive Damaged
- Inspect the goods and packaging on delivery.
- Record visible damage on the driver’s delivery paperwork or electronic proof of delivery wherever possible.
- Take clear photographs of the damaged goods, external packaging and pallet or crate.
- Keep the goods and all packaging available for inspection.
- Retain the commercial invoice, proof of value and shipping documents.
- Contact Pallet2Ship promptly and submit the required claim information.
If Goods Are Missing or Lost
Contact Pallet2Ship immediately with the booking reference, shipment details and evidence of the goods’ value.
Claims must be reported and submitted within the applicable carrier and insurer deadlines. These deadlines may differ according to the service, circumstances and insurance terms, so do not delay reporting a potential claim.
Use our Claims Process page to begin the process.
Submitting a claim does not automatically mean compensation will be payable. Claims are assessed according to the relevant policy or carrier liability terms and supporting evidence.
Important Insurance Information
The Freight Insurance Calculator estimates the price of optional insurance based on the information entered.
The estimate does not guarantee acceptance for carriage or insurance eligibility.
Cover is subject to the current policy wording, exclusions, insured value, packing requirements and any additional conditions.
The customer is responsible for declaring the goods and their value accurately, using suitable packaging and reviewing the insurance terms before booking.
Where insurance has been arranged, the applicable policy documentation and confirmation of cover determine the protection provided.
Ready to Book an Insured Shipment?
Use the Freight Insurance Calculator to estimate the cost of protecting your goods, then add optional insurance during booking where available.