Freight Insurance in Australia: What It Covers & How Much It Costs

Each year, Australian businesses face expensive claims when goods are lost or damaged in transit. In 2024 alone, 576 containers were reported missing worldwide, a small number in global trade, but still enough to disrupt supply chains and drain profits.

The question is simple: what happens to your business if your goods never arrive? Freight insurance provides financial protection by covering the declared value of shipments against risks in transit. 

In this guide, we’ll explain what it covers, how much it costs in Australia, and how to decide if it makes sense for your shipping needs.

Freight Insurance in Australia

Freight insurance in Australia is a policy that protects goods while they are being transported, covering risks that go beyond a carrier’s limited liability. Unlike standard carrier liability, which usually reimburses only a fraction of a shipment’s value, freight insurance covers the full declared amount if goods are lost, damaged, or stolen.

Coverage applies to both domestic and international freight, including road, rail, sea, and air transport. Typical policies insure against accidental damage, theft, and total loss, though exclusions like poor packaging or prohibited goods may apply.

The cost of freight insurance typically costs from 0.3% to 1% of the shipment’s value. For example, insuring a pallet of electronics worth $20,000 might cost $60 to $200, while a smaller domestic shipment could be insured for under $10.

For businesses, freight insurance provides peace of mind and financial protection. With Couriers & Freight, you can arrange freight warranty at the time of booking, ensuring your shipments are protected from pick-up to delivery.

Protect Your Shipments with Freight Insurance

Reduce risk and safeguard your cargo from pick-up to delivery. Add freight warranty with Couriers & Freight’s reliable cover.

Get a Quote Now

What Is Freight Insurance?

Freight insurance goes beyond a carrier’s limited liability and reimburses the full declared value of goods if they are lost or damaged in transit. Unlike carrier liability, which often applies only under strict conditions and covers a fraction of the cost, freight insurance gives businesses more complete financial protection.

The main types include:

• Full coverage: Protects against all risks of physical loss or damage during transit, unless specifically excluded in the policy.
• Partial coverage: Applies only to specific risks, such as theft or water damage, often at a lower cost.
• Specialised policies: Tailored for high-value, fragile, or temperature-sensitive goods requiring specific handling.
• All-risk vs. Named-peril policies: All-risk policies cover any loss or damage except for exclusions listed, while named-peril policies cover only risks specifically listed in the policy.

A common misconception is that carriers automatically insure goods for their full value, or that standard business insurance covers freight shipments. Many businesses find out too late that this isn’t the case. Understanding these distinctions helps ensure your shipments have meaningful protection instead of leaving them exposed.

What Does Freight Insurance Cover?

Freight insurance policies outline what is covered and what is excluded. Understanding these details helps you choose the right level of protection for your shipments.

Damage, loss, or theft during transit

Freight insurance covers goods that suffer accidental damage, become lost in transit, or are stolen during handling or transportation. For example, a shipment of furniture damaged by a forklift accident during loading would be covered if declared and packed according to policy requirements.

Domestic vs international coverage

Domestic policies in Australia apply to goods moved by road, rail, sea, or air within the country. International policies extend protection across borders and often involve multiple carriers and modes of transport. Coverage may be port-to-port for sea freight or door-to-door across several legs. Always confirm that multi-leg journeys are fully insured.

Exclusions and limitations

Every policy comes with limits and exclusions. Common exclusions include hazardous goods, poor packaging, inherent product defects, or delays not linked to physical damage. For example, if perishable goods spoil due to a delay, the claim is unlikely to be paid unless the policy specifically covers perishables.

How Much Does Freight Insurance Cost in Australia? 

In Australia, freight insurance is generally priced in two ways. Some providers charge a flat fee per shipment, which suits low-value or standard goods. Others set the premium as a percentage of the shipment’s declared value, a common approach for higher-value or specialised cargo.

The exact cost depends on several factors:

1. Value of goods: higher-value shipments attract higher premiums.
2. Destination: remote or high-risk locations can increase rates.
3. Mode of transport: air freight is typically costlier to cover than road or rail.
4. Risk profile: fragile, hazardous, or high-theft goods carry higher premiums.

For example, covering a $500 domestic parcel might cost as little as $5 to $10. Insuring a $50,000 international electronics shipment could cost $200 to $500, depending on the route and level of risk.

How to Arrange Freight Insurance

Businesses have several options when it comes to securing freight insurance.

Through a freight forwarder or courier

Many freight companies include insurance in the booking process, making it easy to add cover without dealing with separate providers. Always check that the policy reflects the full declared value of your goods, not just a capped liability limit.

Directly with an insurance provider

Companies that frequently ship high-value goods may prefer to work directly with insurers. This allows for broader or more customised policies, tailored to specific cargo types, routes, or risk profiles.

With Couriers & Freight

When booking with Couriers & Freight, customers can add freight insurance at the same time as their shipment. This saves admin, speeds up claims, and ensures the cover matches the exact route and type of cargo.

Protect Your Goods in Transit

Freight insurance is most effective when built into your shipping process — not added as an afterthought. By making it part of your logistics strategy, you protect both your cargo and your cash flow.

It reduces financial risk and keeps business operations running smoothly, whether your goods are moving across town or overseas.

With Couriers & Freight, you can book shipments and add a freight warranty in one step. It’s a simple way to save time, avoid costly setbacks, and make sure your cargo is covered from pick-up to delivery.

Protect Your Shipments with Freight Insurance

Reduce risk and safeguard your cargo from pick-up to delivery. Add freight warranty with Couriers & Freight’s reliable cover.

Get a Quote Now