Domestic Insurance

In the context of foreign trade, domestic insurance typically refers to insurance taken out by an exporter or importer with a domestic insurance company within their own country, rather than by an overseas buyer or seller. Its core characteristic is that the subject matter insured, the insured, and the insurer are all located in the same country. The scope of coverage generally only covers transportation, warehousing, and other stages within the domestic territory and does not extend to the international transport segment. Usage scenarios include: the exporter arranging insurance for the domestic segment from the factory to the port of shipment (or the importer from the port of destination to the warehouse); or the buyer and seller agreeing that each party insures only the domestic segment while the other party is responsible for the international segment. Precautions: the start and end points of insurance liability must be clearly defined to avoid overlap or gaps with international freight insurance (such as marine insurance under CIF). If the contract uses terms such as FOB or CFR, the buyer usually needs to insure the international segment itself, and domestic insurance cannot replace international freight insurance. The difference from 'international freight insurance' is that the latter covers the entire cross-border transport, while domestic insurance is limited to within one country. Foreign trade practitioners should accurately divide insurance responsibilities according to trade terms and contract clauses to prevent underinsurance or duplicate insurance.