Definition
The value cargo is insured for. Standard practice is the CIF value plus 10% to cover expected profit and incidental costs.
See it in practice
Related terms in Insurance
Cargo insurance (ICC A/B/C)
Marine cargo cover under Institute Cargo Clauses: ICC (A) is all-risks, (B) covers named major perils, (C) is the narrowest basic cover.
War-risk surcharge
Extra insurance/freight cost applied on lanes passing through conflict or high-risk areas (e.g. certain straits and seas).
General average
A maritime principle: when cargo is sacrificed to save a voyage (e.g. jettisoned or fire-damaged), ALL cargo owners share the loss proportionally — a key reason to insure.