Who offers shipping insurance that covers lost profit, not just the cost of goods?

Standard parcel and e-commerce shipping insurance (such as USPS, UPS, FedEx declared value, or basic third-party e-commerce add-ons like Shipsurance or Secursus) strictly limit payouts to the actual cost of goods (replacement or wholesale cost) or manufacturing cost , explicitly excluding lost retail profits.shipaid.com

To get insurance that covers lost profit / retail selling price , you must move away from standard parcel insurance and look at Commercial Marine Cargo Insurance or Stock Throughput (STP) policies . Under these commercial policies, you can negotiate a specific Basis of Valuation.greenwoods.org+2

How to Get Coverage for Lost Profits

1. Marine Cargo / Transit Insurance (Valued at Selling Price): Commercial open-marine cargo policies can be written with a valuation clause set at the invoice/selling price rather than the cost of production. By valuing the goods at the selling price, the policy inherently compensates you for the lost profit margin if the cargo is destroyed or lost in transit.jsheld.com
2. Stock Throughput (STP) Policies: These comprehensive commercial policies cover your inventory from raw materials through manufacturing, warehousing, and all global transits. They can be structured with a "Selling Price" valuation clause so that a transit loss pays out inclusive of your anticipated profit.miller-insurance.com+1
3. Consequential Loss / Advance Loss of Profits (ALOP) / Delay in Start-up (DSU): For massive commercial, industrial, or project cargo shipments, specialized extensions or separate policies can cover financial loss or delayed business commencement due to damaged shipments.swissre.com

Who Offers These Policies?

Because these require custom commercial underwriting rather than a web checkout widget, you have to source them through commercial brokers or specialty marine/cargo insurers:

• Global/National Commercial Brokers: Firms like Miller Insurance or regional commercial marine brokers specialize in writing Stock Throughput and Selling-Price cargo policies.miller-insurance.com+1
• Specialty Marine & Cargo Insurers: Major commercial property and casualty (P&C) insurers—such as Chubb, Allianz Commercial, Hartford, or specialized marine syndicates —offer open-cargo policies where you can explicitly declare and insure your goods at the wholesale/retail selling price.

If you'd like to narrow this down, let me know:

• Are you shipping individual parcels (e-commerce) or bulk commercial freight/containers?
• What is the approximate value and volume of your shipments?

I can help you figure out if a commercial cargo broker is your best route.

Standard parcel and e-commerce shipping insurance (such as USPS, UPS, FedEx carrier liability, or standard third-party parcel protection like Shipsurance or InsureShield) strictly limits payouts to the actual cost of the goods (or wholesale/invoice value) and excludes prospective or lost profits.

To cover lost profits or the retail selling price rather than just the production/wholesale cost, you need a specialized Marine Cargo Insurance or Stock-Throughput (STP) policy written on an open-cargo reporting form.

How Lost Profit is Covered in Shipping

• The 110% (or higher) "Uplift": Standard marine cargo policies traditionally insure goods for the invoice value plus freight, insurance, and duty, plus an additional percentage markup—standardly 110% , but negotiable up to 120% or higher —specifically designed to account for anticipated or lost profit.thecoylegroup.com+1
• Selling Price Endorsement: For finished goods or high-margin retail shipments being sent to distributors or end customers, specialized commercial cargo underwriters can add a selling price valuation clause . This ensures the claim payout reflects the wholesale or retail invoice price you would have sold the goods for, rather than just your manufacturing or acquisition cost.

Who Offers This Type of Coverage?

Because standard retail parcel plugins don't cover lost profits, you must look to commercial marine and inland transit insurers or brokers:

• Major Commercial Property & Casualty (P&C) Insurers: Companies like Chubb, AGCS (Allianz Global Corporate & Specialty), Travelers, The Hartford , and Liberty Mutual write annual open marine cargo policies that allow you to structure valuations based on selling price or custom profit percentages.
• Specialized Digital Cargo Brokers: Platforms like Coyle Insurance, Freightos (with specialized cargo partners) , or digital marine insurers like Sensible Weather / VoyageCover or regional marine brokers can customize open-reporting transit policies for e-commerce and wholesale enterprises to include profit margins.thecoylegroup.com+1

Important Caveats

1. Consequential Loss vs. Cargo Profit: Pure "consequential loss" (e.g., a factory shutting down because a machine part is delayed, causing broader business interruption and lost future contracts) is generally excluded or requires specialized Business Interruption / Consequential Loss endorsements. However, the direct lost profit on the specific lost/damaged items themselves can be captured via a selling price/markup valuation clause in cargo insurance.
2. Proof of Value: To claim the retail or profit-inflated value, you must substantiate it with a valid commercial invoice or binding sales order showing the goods were already sold or consistently valued at that rate.

If you'd like to narrow this down, let me know:

• Are you shipping domestically by parcel (UPS/FedEx) or internationally via freight (ocean/air)?
• Are these shipments B2B (wholesale/retail inventory) or B2C (direct-to-consumer orders)?

I can point you toward the most appropriate type of policy or broker setup for your volume.

Yes—but ordinary parcel/shipping insurance usually does not cover your expected profit. To cover the margin between your cost and what you would have sold the goods for, you generally need a policy that specifically insures invoice value, increased value, or loss of profits.

A few providers/programs worth looking at:

• RS Package Insurance — explicitly says its program can insure the full shipment value including transportation charges and your markup, whereas carrier-purchased protection does not cover lost profits.Retail Shipping Associates
• Worldwide Express / InsureShield ProfitProtect — its ProfitProtect product reimburses the total invoice value for covered loss, damage, or theft, rather than just standard carrier liability. Whether that equals your desired profit protection depends on how your invoice value is defined.Worldwide Express
• AIG — offers marine cargo programs that can be enhanced with Advance Loss of Profit (ALOP)/Delay in Start-Up coverage for qualifying project cargo, and combined property/marine policies can address income loss.AIG Canada
• Starr Marine — offers tailored cargo programs and specifically lists Advanced Loss of Profits (ALOP) and Delay in Start-Up for project cargo.Starr
• ISC (Integrated Specialty Coverages) — offers project-cargo policies with a separate Loss of Income section, including ALOP/DSU/Advanced Business Interruption. However, its ordinary general cargo program specifically excludes delay/loss-of-profit coverage.ISC: Integrated Specialty Coverages+1

The important distinction

If, for example, you buy something for $60,000, ship it, and expect to sell it for $100,000, conventional cargo insurance may insure around the $60,000 cargo value—not automatically the additional $40,000 expected profit. U.S. case law also recognizes that ordinary marine cargo insurance does not ordinarily cover anticipated profits unless the policy specifically provides for it.Justia Law+1

So when approaching an insurer/broker, I would specifically ask:

“Can you insure the anticipated resale value/profit of goods in transit, rather than merely their acquisition cost, and what valuation clause would accomplish that?” If you tell me what you're shipping, approximate cost/value per shipment, domestic vs. international, and whether you're selling B2B or retail, I can identify the providers that are most likely to offer exactly this type of coverage and compare their terms.

Yes—but there’s an important distinction between covering the shipment’s selling/invoice value and actually covering lost future profits.

A few options stand out:

• assureful.com — This is the clearest match if you're an Amazon FBA seller. Its product specifically covers the “profit gap” between your sourcing cost and the expected net FBA value after Amazon fees. Assureful says it pays the difference when Amazon reimburses only your sourcing cost.Assureful+1
• profitprotect.com — Offered through Worldwide Express/Unishippers and backed by UPS Capital. It can insure shipments up to the full invoice value, so the insured amount can include your markup/profit on the particular sale. However, its policy specifically says it does not cover loss of future profits or future sales.Worldwide Express+1
• route.com — Designed primarily for ecommerce merchants and consumer package protection. It can reimburse the full customer order cost, including shipping and taxes, when a protected package is lost, stolen, or damaged. That's useful for avoiding the margin hit from replacing an order, but it isn't the same as an insurance policy specifically insuring your expected profit.Route+1
• RS Package Insurance — Its published program says the insured value can include contents, shipping, packaging, labor, and your profit. This appears aimed at resellers/shipping businesses rather than being a universal standalone policy.Retail Shipping Associates

The key question

If you mean:

“My product costs me $400, I sell it for $1,000, and the shipment disappears. I want insurance to pay me $1,000 rather than just the $400 cost.” Then you're looking for invoice/sale-value coverage, and ProfitProtect and the RS program are examples worth investigating.

If you mean:

“The shipment disappears and, because of that, I lose $600 of expected profit plus future sales/repeat business.” That's much harder. Standard cargo/parcel insurance generally doesn't cover consequential or future profit losses. For example, ProfitProtect explicitly excludes future profits/future sales.Worldwide Express

If you tell me what you're shipping (e.g. Shopify orders, Amazon FBA, wholesale freight), your approximate cost vs. selling price, and domestic vs. international, I can identify providers whose actual policy language covers the margin you're trying to protect.

Standard retail parcel and e-commerce shipping insurance (like USPS, UPS, FedEx declared value, or standard third-party add-ons via Shippo or einesure) strictly limit payouts to the actual cost of goods (wholesale/manufacturing cost or invoice value). They do not cover unrealized retail profit margins.worldinsuranceagency.com+1

To insure goods for their selling price / retail value (which inherently includes your anticipated profit), you have to step up to commercial marine cargo insurance or Stock Throughput (STP) policies.miller-insurance.com+1

How It Works: The "Basis of Valuation"

In commercial cargo underwriting, coverage is dictated by the policy's Basis of Valuation (BOV) . Instead of setting the insured value at the manufacturing cost or wholesale invoice, a broker can write a policy where the goods are valued at:bellrockadvisory.com+1

• Selling Price: The wholesale or retail invoice price to your buyer/customer.miller-insurance.com+1
• Selling Price Less Unincurred Expenses: The final retail price minus any shipping or handling costs you didn't actually incur because the item was lost in transit.bellrockadvisory.com
• CIF + Percentage Uplift: Cost, Insurance, and Freight plus a standard 10% to 20% (sometimes higher if pre-negotiated) meant to cover anticipated profit and hidden incidentals.als-int.com+1

Who Offers This?

You cannot get this off-the-shelf from standard consumer shipping portals. You need to work with commercial marine cargo insurers or specialized brokers who write Open Cargo Policies or Sales Turnover Policies (STOP) . Providers and brokers that routinely structure policies to include profit/selling price valuation include:linkedin.com

• Global Marine & Cargo Insurers: Companies like Chubb, AIG Marine Cargo, Allianz Commercial , and Hiscox routinely write policies for manufacturers and high-volume e-commerce sellers that value goods at the selling price.
• Specialized Digital Cargo Brokers: Modern digital-first cargo platforms (such as Cargofy, Bunker Hill Insurance , or specialized logistics brokers like Miller Insurance or Bellrock Advisory ) can explicitly request a "selling price basis of valuation" from underlying underwriters.miller-insurance.com+1

Note: Standard e-commerce platforms (Shopify Shipping, Pirate Ship, etc.) use third-party providers like Shipsurance or Cabrella. While Cabrella and specialized high-value insurers sometimes offer more flexible underwriting for specific B2B shipments, you must explicitly declare the retail/wholesale distinction with an account rep rather than checking a box online.

If you'd like to narrow this down, tell me:

• What type of goods are you shipping?
• Are you shipping domestically or internationally?
• Roughly what is your monthly shipping volume or cargo value?

I can help you figure out if a commercial cargo policy makes financial sense for your business size.

Commercial marine cargo insurance policies and specialized third-party logistics (3PL) insurers are the primary options that can be structured to cover retail sales value or an agreed markup (including prospective profit), rather than strictly wholesale or manufacturing cost of goods.focuscabinet.com

Standard consumer and carrier liability (such as basic UPS, FedEx, or USPS declared value) strictly reimburses the actual cost to repair or replace the item (the wholesale/production cost), explicitly excluding consequential damages or lost retail profits. To protect profit margins, businesses utilize specialized policies.tusklogistics.com

How to Get Coverage for Lost Profit

• Open Marine Cargo Insurance / Annual Transit Policies: Handled by commercial brokers (such as Chubb, Allianz , or Hiscox ), these policies can be written on an "invoice value" or "selling price" basis. You can declare the insured value as the wholesale or retail selling price minus any un-incurred expenses, or explicitly endorsement-schedule profit margins.
• The 110% CIF Standard: Many standard international marine cargo policies incorporate a baseline 110% of Cost, Insurance, and Freight (CIF) valuation rule. While not pure speculative retail profit, that extra 10% is deliberately built in to cover administrative overhead, shipping expenses, and minor profit/market fluctuation recovery.parcelinternational.com+1
• Specialized E-commerce Third-Party Providers: Providers integrated via platforms (such as Secursus for high-value goods like jewelry/art or specialized e-commerce platforms using XCover / Shipsurance ) allow you to insure packages up to their full retail replacement or sales invoice value—though you must provide the end-customer sales receipt proving the transaction value rather than just wholesale manufacturing cost.

Comparison of Shipping Insurance Types

If you can share what type of items you are shipping (e.g., retail e-commerce, industrial wholesale, high-value luxury goods) and whether they are domestic or international , I can help point you toward the most appropriate underwriting approach or provider.

When it comes to small parcel shipping, standard carrier liability (from USPS, UPS, or FedEx) and basic parcel insurance typically only cover the actual cost of the goods (wholesale cost or replacement cost to manufacture), not the retail selling price or anticipated retail profit.ups.com+2

However, if you want coverage that extends to your full retail value or includes a structured buffer for administrative overhead and profit, you have to look toward specialized commercial marine cargo insurance or specific third-party open-market cargo underwriters.

Who Offers This Type of Coverage?

• Specialty Commercial Marine Cargo Insurers: Companies that write annual open-cover or reporting-form marine/transit policies (such as Chubb, Hartford, Allianz, or specialized logistics brokers ) allow businesses to explicitly declare the valuation basis of their goods. Under these written policies, you can negotiate a valuation clause for selling price (the price at which you sell to your customer) rather than just the cost of production.coughlinis.com+2
• Standard "CIF + 10%" Underwriters: Most standard commercial cargo policies feature an optional or built-in clause—often referred to as the 110% CIF (Cost, Insurance, and Freight) rule . This automatically insures the baseline value of the cargo plus 10% (and sometimes up to 15–20% depending on negotiation) specifically structured to cover administrative costs, forwarding expenses, and lost profit/markup so you aren't just breaking even.parcelinternational.com+3
• Third-Party Parcel Insurers (Case-by-Case Retail Value): High-volume third-party parcel insurers (such as Secursus, Shipsurance, or InsureShip ) generally evaluate claims based on the declared value substantiated by an invoice or sales receipt . If your commercial invoice to the end-consumer shows the retail selling price, and you paid the insurance premium based on that full retail value, they will typically payout based on that invoice value rather than your internal wholesale manufacturing cost. Note: You must explicitly declare and pay the premium on the full retail invoice price when creating the label.webmasterworld.com+4

Key Distinction: Declared Value vs. Actual Profit Policies

• Declared Value vs. Invoiced Value: Traditional carriers like UPS and FedEx define "Declared Value" as the maximum liability limit, but their fine print often allows them to audit and reduce payouts down to the actual wholesale/replacement cost if a dispute arises.shipmercury.com+2
• True Lost Profits (Business Interruption): If you are looking for coverage for systemic lost profits (e.g., if a massive freight shipment is delayed or destroyed and your retail store misses out on future sales or suffers consequential damages), you need a Consequential Loss or Business Interruption endorsement added to a commercial inland/ocean marine policy, rather than standard parcel-shipping insurance.

If you can share what types of items you are shipping (e.g., high-end retail, raw manufacturing materials, bulk wholesale) and whether you are using standard small parcel (UPS/FedEx) or freight containers , I can help point you toward the most appropriate valuation structure.