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Cargo Insurance

If you’re shipping goods around the world, importing, exporting or are responsible for cross-continent logistics, you need the right cargo insurance. Not only does it protect your clients' goods and stock, but it can also ensure your own contents are protected against the threat of damage or loss. In addition to protecting your financial exposure, cargo liability insurance also defends your reputation as a reputable logistics expert, providing you with peace of mind.

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What is cargo insurance?

Cargo insurance protects goods during transportation. This can be by land, sea, air, or a combination of different methods. Insurance covers any financial losses you may incur if your cargo (or cargo that you may be transporting on behalf of a third party) is lost, damaged or stolen in transit.


Why do you need cargo insurance?

Even if you package your cargo correctly, it can still get damaged, lost or stolen in transit. For example, if you’re transporting goods by sea and the container it’s in breaks loose in bad weather, the contents could be thrown around inside the container. Containers being lost overboard is also quite common, while thefts from containers at ports pose a significant risk.

Air freight can also be damaged in transit due to turbulence or, at the very worst, aircraft failure. In some parts of the world, the risk of ships being attacked and their contents stolen remains. For land-based logistics, an accident or theft of a vehicle can result in considerable loss. While nobody wants to think about a worst-case scenario, an insurance policy is there to mitigate the financial impact should it occur.

Who needs freight cargo insurance?

Insurance is essential for anyone involved in the movement of goods, whether you're shipping to a nearby town or across continents. Those who should be considering adding insurance to their portfolio include:

  • Importers and Exporters
  • Manufacturers and Distributors
  • E-commerce Businesses and online sellers shipping high volumes of goods
  • Freight Forwarders and Logistics Providers
  • Buyers under certain Incoterms: Depending on the shipping terms (like CIF or FOB), the buyer or seller may be responsible for insuring the goods during transit

Types of insurance to consider

At Park Insurance, we offer a variety of insurance options for cargo.

  • All-Risk Coverage: This provides comprehensive protection against most physical losses and can be applied to freight being transported by air, sea, rail, or land.
  • Named Perils Coverage: Covers only specific risks listed in the policy. This could be for a one-off transport of goods (for example, artwork or a couture collection)
  • General Average: This is a very specific maritime principle where all parties share losses if cargo is sacrificed to save the ship.
  • Stock Throughput: If you want to arrange Import cover, then this can be extended to include the UK storage and re-distribution of your goods under a specialised umbrella cover called a Stock Throughput policy.
  • Household Goods and Personal Effects: Whether you are moving abroad or within the UK, we can provide a tailor-made policy covering all your goods in storage and in transit. The cover can be extended to include your vehicle as well.
  • Cargo liability insurance: If you’re transporting cargo on behalf of a third party, liability insurance covers you for any compensation claims made as a result of damage or loss.

What's covered

Cargo insurance typically covers accidents, natural disasters, theft, fire, and damage during handling.

What’s not covered

Freight cargo insurance typically doesn't cover loss or damage resulting from poor packaging, inherent product defects, or delays without physical damage (for example, if a ship is held in port for longer than expected due to adverse weather conditions).

How much does cargo insurance cost?

Shipment insurance, also known as cargo cover, provides protection and peace of mind against loss, theft, or damage. Cover can be arranged as either an Annual Policy or a Single Voyage Shipment. If you're regularly sending goods abroad or around the UK, an annual policy can spread the cost, while a one-off single-voyage shipment means you're not paying for insurance you don't need.

Get moving with Park Insurance

At Park Insurance, we have decades of experience in helping our customers find the right kind of cover for their business, including freight cargo insurance. With our experts working on your behalf, you can fit an insurance policy into your business plan that suits both your needs and your budget. Contact us today and talk to one of our team for expert, impartial advice, or use our online Instant Quote button for a no-obligation quote right now.

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Give us a call on 0117 301 8507 or click on the button below and we will be happy to contact you to discuss your needs.

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Park Insurance Services Ltd
323 Church Road
St George
Bristol
BS5 8AA

Tel: 0117 955 6835

Email: info@parkinsurance.co.uk

Park Insurance Services Limited is authorised and regulated by the Financial Conduct Authority under FRN 998383. You may check this on the Financial Services Register by visiting the FCA website. Park Insurance Services Limited is registered in England and Wales (company number 13091532). Registered address: 323 Church Road, St. George, Bristol, England, BS5 8AA.