Help Center Article
How Do You Calculate Total Insured Value?
The total insured value (TIV) of cargo is the total value of the goods that are being insured under a cargo insurance policy.
The total insured value (TIV) of cargo is the total value of the goods that are being insured under a cargo insurance policy. TIV is the maximum amount of coverage that the policy will provide in the event that the goods are lost or damaged during transportation.
TIV is calculated from the following components:
- The value of the goods: This includes the cost of the goods, as well as any profit margins.
- Additional expenses: This may include expenses such as packing and handling costs, transportation costs, and other expenses incurred in preparing the goods for shipment.
- Insurance coverage limits: Be sure to consider the limits of the insurance coverage, as the TIV should not exceed the policy limits.
The TIV of your cargo is the sum of the value of your goods, plus some defined additional expenses. It is important to ensure that the TIV accurately reflects the value of the goods being shipped, because “under declaring” TIV could result in insufficient coverage in the event of a loss.