Does DDP Shipping Include Insurance? (Most Importers Get This Wrong)

Many importers assume that DDP shipping automatically includes cargo insurance.

It sounds reasonable.
After all, DDP means Delivered Duty Paid. The seller handles customs, duties, and delivery. So insurance must be included… right?

❌Wrong.

In real-world logistics, DDP defines tax and delivery responsibility — not risk protection. This misunderstanding is one of the most common (and costly) mistakes buyers make when importing from China.

This article explains what DDP actually covers, what it does not, and how to avoid finding out the hard way when a shipment is damaged or lost.

What DDP Shipping Actually Means

Under Incoterms®, DDP (Delivered Duty Paid) means the seller or forwarder agrees to:

• Handle export clearance in China

• Pay import duties and taxes

• Deliver goods to the named destination (warehouse, FBA, or factory dock)

What DDP does not automatically define:

• Cargo insurance

• Claim responsibility if goods are damaged

• Who absorbs financial loss after delivery disputes

DDP is a delivery term, not a protection policy.

This distinction matters once something goes wrong — and eventually, something always does.

Why Buyers Assume Insurance Is Included

There are three reasons this misconception is so common:

1. DDP is often sold as “worry-free shipping”
Freight forwarders market DDP as “all inclusive,” which sounds like risk coverage.

2. Quotes bundle costs without transparency
Many DDP quotes combine freight, tax, and service fees into one line item — with no mention of insurance.

3. Problems don’t surface until after delivery
Buyers only realize insurance is missing after a damaged pallet arrives.

By then, leverage is gone.

DDP vs Cargo Insurance: Responsibility Breakdown

Here’s the critical reality most importers miss:

• DDP defines who pays duties and arranges delivery

• Cargo insurance defines who gets compensated when things go wrong

If insurance is not explicitly stated in your DDP agreement, it usually isn’t there.

In practice:

• The forwarder may help “coordinate” a claim

• But financial responsibility often falls back on the buyer

DDP does not replace insurance. It only shifts logistics execution.

Common DDP Insurance Disputes

These disputes show up repeatedly in real claims:

“The shipment arrived, so our responsibility ended.”
Once delivery is signed, many DDP providers consider the job complete.

“Damage happened during unloading.”
Without insurance, responsibility becomes almost impossible to prove.

“Insurance was optional, not included.”
This sentence appears in fine print more often than buyers expect.

DDP without insurance creates a gray zone — and gray zones favor the party holding the money.

How to Confirm Insurance in a DDP Quote

Never assume. Always verify.

A proper DDP quote that includes insurance should clearly state:

• Insurance type (All-risk vs basic)

• Coverage value (invoice value or CIF value)

• Claim process and documentation requirements

If the quote only says “DDP shipping” with no insurance line item, you are not insured.

This applies whether you are shipping to Amazon, a 3PL, or a B2B warehouse.

When DDP Is Risky Without Insurance

DDP without cargo insurance becomes especially dangerous when:

• Shipping high-value goods

• Using mixed cartons or fragile packaging

• Delivering directly to Amazon FBA

• Importing under tight seasonal deadlines

If damage occurs, the cost of replacing inventory usually far exceeds the cost of insurance.

Final Checklist Before Using DDP

Before accepting any DDP offer, confirm the following:

• Is cargo insurance explicitly included?

• What risks are covered (damage, loss, delay)?

• Who files the claim — you or the forwarder?

• Is coverage valid until final delivery, not just port arrival?

If any answer is unclear, DDP is not “safe shipping.”

How This Connects to Amazon & B2B Risk Planning

Many Amazon sellers only realize the insurance gap after FBA rejects damaged inventory.
This exact issue is explored in detail in Freight Insurance for Amazon FBA Shipments: Who Pays When Goods Are Damaged?, which breaks down responsibility at each shipping stage.

For larger, non-Amazon shipments, risk shifts even further toward the buyer.
That’s why Cargo Insurance for B2B Imports from China: Cost, Coverage & Risk Explained focuses on bulk cargo, supplier responsibility limits, and claim structures.

Together, these three guides form a responsibility matrix — not theory, but practical risk control.

Key Takeaway

DDP shipping simplifies logistics.
It does not eliminate risk.

Insurance is not included unless it is written, priced, and documented.
If it isn’t, the risk silently transfers to you.

Understanding this distinction is what separates experienced importers from first-time buyers learning through losses.