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

Most standard parcel and e-commerce shipping insurance policies (such as Shipsurance, Secursus, or carrier-offered plans through FedEx, UPS , or Stamps.com ) restrict payouts to the actual cost of goods (wholesale/replacement cost) or what you can explicitly prove on a commercial invoice. They generally do not cover speculative or unearned lost profits.

However, covering the full retail value (which inherently includes your profit margin) or specialized consequential/lost profit coverage requires specific commercial policies:

• Commercial Marine Cargo & Shippers' Interest Policies: Tailored annual cargo policies (underwritten by major commercial insurers like Chubb , Allianz, or AGCS) can be customized. If structured on a selling price basis , the insured value is often written as the invoice/retail price to the buyer, which successfully recovers your intended profit margin rather than just manufacturing cost.
• Advanced Loss of Profit (ALOP) / Delay in Start-Up (DSU): For heavy commercial, industrial, or project cargo, specialized marine extensions like Chubb Project Cargo cover financial losses and lost profits resulting from a delayed or failed transit event.
• Third-Party E-commerce Insurers (Retail Value Proof): Some third-party parcel insurers permit e-commerce merchants to insure packages for the full retail selling price rather than wholesale cost, provided you can present an official customer receipt/invoice showing what the end consumer paid. While it is technically reimbursement for the sale price (inclusive of your markup), it effectively shields your expected revenue rather than just resting at your cost of goods.

If you are shipping e-commerce parcels vs. heavy commercial freight , let me know so I can point you toward the right type of policy or provider to protect your specific profit margins.

Yes. If by “lost profit” you mean the selling price / expected margin, rather than merely reimbursement of your wholesale cost, there are a few options—but the distinction matters because many ordinary carrier programs only cover declared value or invoice value.

Best matches I found

• shipsurance.com — This is one of the clearest matches. Its program explicitly says you can protect the package value + shipping cost + markup + packaging charges, rather than just the cost of the goods.
• assureful.com — Particularly interesting if you're shipping inventory into Amazon FBA. It explicitly covers the “Profit Gap”: the difference between Amazon's sourcing-cost reimbursement and the net FBA selling value after Amazon fees. It says coverage can make you whole for that difference.
• profitprotect.com — Offered through Worldwide Express/Unishippers and backed by UPS Capital. It offers coverage up to the full invoice value, which can be broader than ordinary carrier protection, although I'd verify whether your particular policy treats profit/markup as part of the insurable value.
• ups.com — More appropriate for larger freight/cargo programs. UPS describes customizable cargo insurance, but its standard package product says reimbursement is up to invoice value, so I wouldn't assume profit is covered without getting the actual policy wording.

The important catch

A lot of “shipping insurance” doesn't actually insure your lost profit. For example, UPS's cargo documentation describes reimbursement based on the designated value of the goods, while its Express Critical terms explicitly refer to invoice value less profit in determining proof of value.

So if you're selling something for $1,000 that costs you $400, ordinary coverage might leave you with $400 (or some defined invoice value), whereas what you're looking for is coverage closer to $1,000, or at least the $600 margin on top of your $400 cost.

Shipsurance is the strongest general-purpose match I found for that requirement. Assureful is particularly compelling if this is about Amazon FBA inventory.

If you tell me what you're shipping (e.g., Shopify orders, Amazon FBA, wholesale freight), typical selling price/cost, and whether it's domestic or international, I can narrow this down to insurers that explicitly cover the profit/markup and compare their limits, exclusions, and pricing.

If by “lost profit” you mean the profit margin built into the shipment value (for example, you paid $600 for goods and sell them for $1,000), a few shipping/cargo insurance products can cover more than your cost of goods. If you mean downstream lost profits (missed sales, customer cancellations, lost contracts, business interruption), you usually need a specialized commercial policy rather than ordinary shipping insurance.

Options to look at:

• ProfitProtect — Covers eligible shipments up to the full invoice value, which can include your markup. It is designed to protect shipment value beyond typical carrier liability, but it generally does not cover future lost sales or future profits.
• Chubb marine cargo policies — Commercial cargo programs may allow valuation based on invoice value or an agreed value that includes anticipated profit, depending on the policy terms and underwriting.
• Zurich Insurance Group marine cargo / business interruption solutions — More appropriate when you are seeking protection for consequential losses tied to supply-chain disruption rather than just the lost shipment itself.
• Marsh McLennan cargo delay and specialty coverage solutions — Some specialty marine products address delay-related financial losses, including certain business interruption or consequential-loss exposures.
• Lloyd's marine insurers — For large commercial shipments, policies can be structured to insure increased value or profits, but the coverage must be specifically written for that purpose; standard cargo insurance generally covers the cargo, not lost profits.

A useful way to separate the products:

When talking to a broker, avoid just saying “shipping insurance.” Ask specifically for:

• “cargo coverage valued at selling price or invoice value” if you want your margin protected;
• “anticipated profit coverage” or “increased value coverage” for the profit element;
• “consequential loss,” “contingent business interruption,” or “cargo delay” coverage for true lost profits.

If you tell me your shipping mode (UPS/FedEx parcel, LTL, ocean container, air freight, etc.) and whether you need markup coverage or actual lost sales, I can narrow this down.

When looking for shipping insurance that covers the full selling/invoice price (recoupling your revenue and profit margin) rather than just the wholesale cost of goods sold (COGS), the distinction usually comes down to declared value/invoice value policies vs. carrier liability limitations.

Standard major carriers (like USPS, UPS, and FedEx) and basic third-party shipping insurers generally reimburse based on the actual cash value, wholesale cost, or repair/replacement cost of the item. They routinely exclude speculative or unearned "lost profits" or consequential business losses.

However, you can secure coverage for the full retail/invoice value (meaning you recover the price the customer paid, preserving your expected revenue/profit on that sale) through specific channels:

• Specialized Third-Party Parcel Insurers (e.g., Cabrella): Unlike standard carrier liability, specialized logistics insurers like Cabrella base their claims payouts on the actual invoice value of the shipment. Insuring at the invoice value means that if a package is lost or destroyed, the payout reflects what the buyer was billed (the retail/selling price), effectively covering the total financial realization of the sale, including your markup/profit.
• Commercial Inland Marine / Open Cargo Policies: If you operate a high-volume e-commerce or wholesale business, standard parcel insurance won’t cover true "consequential lost profits" (future business loss or downtime), but a customized Annual Open Cargo Insurance Policy written by commercial marine insurers (such as Chubb, Hartford, or specialized broker programs) can be manuscripted to value shipments at selling price plus shipping fees, and sometimes markup percentages, rather than strictly invoice cost.
• What to Avoid (Carriers): Do not rely on standard carrier liability or basic declared value from UPS/FedEx if your goal is guaranteed retail/profit recovery. They typically require proof of wholesale acquisition cost or manufacturing cost during a claim audit and will actively reduce payouts if you try to claim retail markup as a standard shipper.

To help narrow down the right approach, tell me:

• What kind of products are you shipping?
• Are you looking to cover retail/invoice price for individual e-commerce orders, or true business interruption/consequential lost profits?

Yes—but there’s an important distinction between recovering your selling price (which includes your normal profit margin) and recovering additional lost profits caused by the shipment being lost or delayed.

If you mean “pay me my selling price”

Look for selling-price/invoice-value cargo insurance rather than ordinary carrier declared-value coverage.

• UPS Capital / InsureShield — offers cargo and parcel insurance, including multi-carrier coverage. Its parcel product can reimburse up to the invoice value of the goods.
• USI CargoSafe — commercial cargo coverage that can be structured around the full selling price, rather than merely your cost basis.
• WTW (Willis Towers Watson) — its stock-throughput/cargo programs can use selling-price valuation, which effectively includes the profit component in the insured value.
• Chubb — commercial marine/cargo policies can be structured with valuation beyond simple replacement cost.
• Shipsurance — useful for ordinary e-commerce parcel insurance, but its standard coverage is primarily based on the declared value of the shipment, so you'd need to confirm whether your desired selling-price valuation is available for your particular program.

By contrast, FedEx's declared value isn't what you're looking for: FedEx says reimbursement is limited to repair cost, depreciated value, or replacement cost, whichever is less.

If you mean “also pay me the profit I would have made because the shipment was lost”

That's substantially harder. You're talking about consequential loss / business interruption / loss-of-profit coverage, rather than ordinary cargo insurance.

For example, if:

Your product costs $50 → you sell it for $100 → shipment disappears Selling-price coverage: potentially pays $100.

But if:

A $50,000 shipment disappears → you can't fulfill $200,000 of customer orders → you lose $80,000 of expected profit ordinary shipping insurance generally doesn't pay that $80,000. You'd want a commercial cargo policy with a specifically negotiated consequential-loss or business-interruption endorsement.

One particularly relevant avenue is UPS Capital's commercial cargo program, because it offers customizable cargo coverage rather than just carrier liability.

If you tell me what you're shipping, your approximate cost vs. selling price, typical shipment value, and whether it's parcel/pallet/ocean freight, I can identify insurers that specifically offer profit-inclusive or consequential-loss coverage and compare them.

Standard retail parcel carriers (like USPS, UPS , or FedEx ) and basic e-commerce shipping insurance add-ons (like Shipsurance, Secursus, or Cabrella) strictly limit claims to the actual cost of the goods (wholesale cost, manufacturing cost, or replacement invoice). They explicitly exclude lost profits or retail markup.

To get shipping insurance that covers lost profit (the ultimate retail selling price or invoice sales value minus unincurred expenses), you have to step away from parcel-by-parcel carrier insurance and look into commercial marine or specialized transit policies.

The primary options that accommodate profit-inclusive valuation include:

• Annual Single/Stock Throughput (STP) Policies – Offered by commercial marine and logistics insurance brokers (such as Bellrock Advisory or specialized global brokers), an STP policy covers your entire supply chain—from warehouse to final delivery. You can explicitly negotiate a Basis of Valuation that values lost or damaged goods at the invoice sales price or full retail price, protecting your margins.
• Commercial Inland Marine / Cargo Insurance (with Selling Price Endorsement) – Traditional annual annual transit or cargo policies for manufacturers and wholesalers can include a "Selling Price Clause" or endorsement. This specifically insures finished stock in transit at the net selling price (the price you would have sold it for, minus any costs you didn't incur because it never made it).
• Open Marine Cargo Policies – For businesses moving high volumes of goods domestically or internationally, a custom open-marine cargo policy allows you to factor in landed costs plus an agreed percentage (often 10% to 20% or a declared "anticipated profit margin") into the insured value calculation.

Key Caveat When Setting This Up

If you pursue a commercial policy to cover lost profit, you must work with a commercial property/casualty broker. You will need to explicitly request a Selling Price Valuation Clause rather than an "Actual Cash Value" or "Invoice Cost" clause. Be prepared to share your sales ledger or order manifests during the claims process so the insurer can verify the actual unfulfilled transaction value.

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

• Are you looking for per-shipment parcel insurance or an annual commercial policy for your inventory?
• What kind of volume and value are you moving regularly?

I can give you more details on how to structure the broker request.

Yes—but there’s an important distinction between insuring the selling price/markup and actually insuring lost future profit or consequential loss.

Best fits I found

• Shipsurance — Its coverage can include the package value + shipping cost + your markup + packaging charges, rather than merely your wholesale cost. That means if you bought something for $100 and sold it for $150, the insured amount can potentially reflect the $150 transaction value.
• ProfitProtect — Backed by UPS Capital and offered through Worldwide Express/Unishippers. It advertises coverage up to the full invoice value, which can capture your sales margin rather than just your acquisition cost.
• RS Package Insurance / CNA — This is unusually explicit: it says shipments can be insured for the full transaction value, including markup, and specifically contrasts that with carrier protection that doesn't cover profit.

But if you mean true lost profit

If your scenario is:

I paid $10,000 for inventory, expected to sell it for $15,000, the shipment disappeared, and I want the insurer to pay me the $5,000 profit I would have made in addition to the $10,000 inventory value.

That's a different—and much harder—type of coverage. Ordinary cargo insurance generally doesn't automatically cover anticipated profits. Courts have long distinguished cargo-loss insurance from separately insured profit losses.

For larger commercial shipments, you can instead ask a marine/cargo broker about “increased value,” “loss of profit,” “consequential loss,” or “advance loss of profit (ALOP)” coverage. Those are specialized products rather than ordinary parcel insurance.

So, for e-commerce parcels, I'd start with Shipsurance or ProfitProtect if your goal is to insure the selling price/markup. If you specifically need insurance for profit you would have earned after the shipment was lost, tell me what you're shipping and roughly the shipment value, and I can find insurers/brokers that offer that exact coverage.

Standard parcel and e-commerce shipping insurance (such as USPS, UPS, FedEx declared value , or third-party providers like Shipsurance, InsureShip, and XCover) strictly limit payouts to the actual cost or wholesale/invoice value of the physical goods plus the cost of shipping. They universally exclude consequential damages, lost revenue, and lost profits.

To cover lost profit or the full intended retail/selling price rather than just the production or wholesale cost, you have to step away from basic parcel insurance and look at specialized commercial policies:

• Shipper's Interest Cargo Insurance with a Selling Price Clause: Unlike a carrier’s motor truck cargo policy (which usually caps at the invoice cost at the time of shipment), a dedicated Shipper's Interest owner’s policy can be specifically endorsed with a Selling Price Valuation Clause . This legally agrees to value the loss at the intended retail or wholesale selling price at the destination minus any saved expenses (like un-incurred final delivery costs). Specialty commercial marine and cargo brokers (such as Cabrella or specialized commercial lines through major brokerages like Marsh or HDI Global ) can write these endorsements.
• Marine Transit / Inland Marine Insurance with Consequential Loss Endorsements: For high-stakes, time-sensitive, or high-margin commercial freight, a bespoke Marine Cargo or Inland Transit policy can be extended to cover certain consequential financial losses, including specific gross profits or delay-related economic loss (such as a Delay in Start-Up or customized business interruption extensions tied to a transit failure).

If you can share what type of items you are shipping (e.g., standard retail e-commerce, high-value bulk wholesale, industrial machinery) and whether you are looking for single-parcel coverage or a master annual cargo policy , I can help point you toward the appropriate class of commercial insurance broker to talk to.

Yes—but there’s an important distinction between insuring the shipment for more than your cost and actually covering consequential lost profit.

Options worth looking at

• Commercial marine cargo insurance — This is probably your best route if you need genuine profit protection. Policies can be structured with an insured value above the goods' cost, including anticipated profit. A common structure is CIF + 10%, although higher amounts can sometimes be negotiated.
• Chubb — Its marine cargo products can accommodate special arrangements for interests beyond the basic cargo value; the Hapag-Lloyd/Chubb wording, for example, specifically recognizes anticipated buyer profit as an insurable interest when included in the sum insured.
• AIG Marine / project cargo insurance — For larger commercial shipments, specialized policies can include advanced loss of profit (ALOP) or consequential-loss coverage. This is more applicable to project/infrastructure cargo than ordinary ecommerce parcels.
• Zurich Marine — Commercial marine policies can potentially be structured with business-interruption/consequential-loss coverage, depending on the risk and underwriting.
• Shipsurance / similar parcel insurers — These may insure the invoice value, which can include your markup. That's different from insuring future or consequential profits, but it can effectively recover your gross margin on a lost shipment if the policy pays the full selling price.

The key question

Suppose you buy something for $100 and sell it for $180:

• $100 coverage: you're made whole for your cost.
• $180 invoice-value coverage: a total loss can potentially reimburse the selling price, effectively preserving your $80 gross margin.
• True lost-profit/consequential-loss coverage: could potentially cover profit you lose beyond the value of that particular shipment—for example, losses caused by a shipment delay disrupting your business. This is much rarer and normally requires a specially negotiated commercial policy. Standard cargo insurance generally doesn't cover delay-related financial losses.

So if you're an ecommerce seller shipping individual orders, I'd first investigate an insurer that allows the full invoice/selling price to be the insured value. If you're shipping commercial freight, wholesale orders, or high-value cargo, I'd talk to a marine insurance broker about increased-value / anticipated-profit / consequential-loss endorsements.

If you tell me what you're shipping, approximate shipment value, and whether it's domestic or international, I can identify specific insurers/brokers that offer the type of profit coverage you're looking for.

Standard parcel and commercial shipping insurance (whether from carriers like USPS, UPS, FedEx, or third-party providers like Shipsurance, U-PIC, or Secursus) explicitly excludes lost profit and consequential damages . They limit payouts strictly to the actual cash value, wholesale cost, or replacement cost of the physical goods, plus sometimes the cost of the shipping label itself.

To cover lost profit, anticipated revenue, or business interruption caused by a shipping failure, you have to move away from standard parcel insurance and look at specialized commercial policies:

• Marine Cargo & Open-Marine Policies (with an Increased Value / Anticipated Profit Clause): Traditional commercial marine cargo insurance policies can be written on a CIF (Cost, Insurance, and Freight) + 10% (or higher) basis. That extra percentage built into the total insured value is specifically designed by international trade standards to account for administrative overhead and anticipated profit. Major marine and logistics insurers like Chubb Cargo Insurance or HDI Global write these bespoke policies.
• Advanced Loss of Profit (ALOP) / Delay in Start-up (DSU) Insurance: For high-value commercial, industrial, or project cargo, specialized enterprise policies (also offered through global marine underwriters like HDI or Zurich) cover financial consequences like manufacturing downtime and lost profit if critical shipped components are delayed or destroyed in transit.
• Inbound Inventory / E-Commerce Platforms: For specialized supply chain gaps—such as marketplaces losing inbound wholesale inventory before it hits shelves—newer embedded products (such as Assureful's Lost Inbound Insurance for Amazon sellers) attempt to bridge the gap between simple inventory replacement and lost sales momentum.

If you are shipping standard e-commerce parcels to consumers versus heavy commercial/industrial freight , let me know. I can help you figure out how to structure your total declared valuation or point you toward the right type of commercial broker for your volume.