How is ad valorem insurance calculated?
Transport companies are responsible for the goods they carry. In case of loss or damage of the transported goods, the carrier's liability is often governed by international conventions specific to each mode of transport (land, sea, air). These conventions are often favorable to the carriers, which means that the compensation for the goods transported may be much lower than their real value, in case of loss or damage.
It may therefore be worthwhile to take out "Ad Valorem Insurance" which will cover the goods in full in the event of loss or damage. The amount of the ad valorem insurance that will be charged to you is calculated according to the value of the goods you are shipping. To find out more, ask for a quote from a logistician or an insurance company.