The obligation of the seller is to deliver the goods to the buyer's door. The risk uncertainty, and all costs are met by the seller. Seller must obtain the import license and pay all duties and taxes. Insurance is necessary in international trade because of the risks that are present in any export transaction. A company can use insurance as a risk management tool.
Insurance is available against shipping risks, commercial risks, and political risks.
This type of insurance is usually available through the freight forwarder. Shipping risk insurance can also be purchased from an insurance agent. The agent will base the cargo insurance on the value of the entire shipment including freight. Rates will vary due to product, client, destination, etc. Air cargo generally costs less than ocean cargo.