When insuring your freight, you are fully entitled to value your goods at a price above the base cost. Valuation of goods may include all freight charges, related costs, plus 10% (or more) to cover the administrative burden of processing a claim and to cover the insured’s profit. Since duty is still payable on damaged goods, make sure you insure the amount of duty as well.
Here’s an example:
| Value of goods: | $10,000.00 | |
| Duty: | $800.00 | |
| Freight Costs: | $2,000.00 | |
| +10% (administrative and profit) | $1,280.00 | |
| Insured Value: | $14,080.00 |
This tip on how to properly insure your shipments is brought to you by David Lychek, Manager – Ocean & Air Services. For more information or to request assistance with a shipment, call 905-882-4880, ext. 207 and ask to speak with David Lychek.
