Full Insurance

Full Insurance is a type of insurance coverage requirement for cargo transportation in international trade, meaning the insured amount equals the actual value of the goods (usually the invoice value), rather than the customary markup (e.g., 110%). Its core is that the insured amount exactly covers the CIF value of the goods, excluding expected profits, tariffs, and other additional costs. It is commonly used when a letter of credit explicitly requires 'Full Insurance' or when the buyer specifies full insurance to save on premiums. Note: Unlike 'marked-up insurance' (e.g., 110% or 130%), full insurance only compensates the actual value of the goods in case of total loss, and the buyer cannot receive compensation for expected profits; if a letter of credit requires 'Full Insurance' but a marked-up policy is submitted, it may constitute a discrepancy. Additionally, some countries' customs require a minimum insurance markup, and full insurance may not meet customs clearance requirements. Unlike 'All Risks', full insurance emphasizes the insured amount rather than the type of coverage. Foreign trade practitioners need to carefully review contract and letter of credit terms, clarify the insured amount and coverage type, and avoid refusal of payment or insufficient claims due to misunderstandings.