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.
What is 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. It is the maximum amount of coverage that the policy will provide in the event that the goods are lost or damaged during transportation. See also Cargo Insurance Coverage Limits above.
The TIV is typically calculated based on the cost of the goods along with some additional related expenses incurred in preparing the goods for transportation (such as packing and handling)
The TIV is important because it determines the Cargo Insurance Coverage Limits. It’s important to ensure that the TIV accurately reflects the cost of the goods and related costs, as underinsuring the cargo could result in insufficient coverage in the event of a loss.