How to arrange cargo insurance for UK imports

Arrange cover before the goods move

Give a specialist cargo insurance broker the product description, packing method, route, transport modes, storage locations and agreed delivery term. Ask whether shipment-specific cover or a policy for repeat shipments better suits your buying pattern. Obtain written confirmation that cover is in place before dispatch.

A forwarder's liability insurance does not insure the goods themselves. Ask explicitly for cargo insurance, the insurer's name, policy wording and a certificate identifying your shipment and insured interest. Use our Incoterms guide to locate the supplier's risk handover rather than repeating the delivery terms here.

Agree how the insured value is calculated

Send the invoice and a breakdown of freight, packing and other shipment costs. Ask the broker which costs belong in the insured value, whether duty or irrecoverable VAT can be included, and whether any agreed uplift is appropriate. Get the currency and valuation basis recorded rather than choosing an unexplained percentage.

Ask how a partial loss would be valued and whether underinsurance could reduce a claim. Check limits for each shipment, vehicle and storage location, particularly when several orders travel together. Our landed price guide helps identify cost components; it is not an insurance valuation formula.

Read exclusions against your actual goods

Ask the broker to explain the exclusions even if the quotation says “all risks”. Obtain written answers about inadequate packing, inherent deterioration, condensation, mould, rust, breakage, theft and temperature changes. Describe fragile, perishable or moisture-sensitive goods accurately and ask what packing or monitoring conditions apply.

Ask separately about delay, lost sales, rejection for quality defects, war, strikes and additional freight or storage expenses. Confirm what is excluded, what needs an extension and what remains your business risk. Keep packing photographs and inspection records; insurance should not replace checking the goods before dispatch.

Check the deductible and periods between handovers

The deductible, also called the excess, is the part of a covered loss you bear under the policy. Ask whether it applies per incident, shipment or item, whether particular damage carries a different deductible, and how it interacts with claim limits. Compare what you would receive after a realistic partial loss, not just the premium.

Map factory holding, collection, consolidation, loading, transhipment, customs examination, temporary storage, final delivery and unloading. Ask the insurer to mark the precise attachment and termination events and any storage restrictions. Do not treat supplier responsibility or carrier custody as confirmation of insurance. Our shipping guide explains the handling stages.

For goods held before dispatch or after arrival, ask whether a storage extension or separate stock cover is needed. Request written terms for interruptions and route changes, including how to obtain an extension before cover ends. Check CIF cover against the same map rather than assuming the supplier's certificate protects the whole journey.

Keep a usable claims file

Before dispatch, save the policy, certificate, invoice, packing list, transport documents and packing photographs together. Confirm who can claim, whom to contact, notification deadlines and when a surveyor is needed. Give the receiving warehouse instructions to photograph damage, record shortages and retain packaging.

If loss occurs, notify the insurer promptly and follow its instructions on preventing further damage. Ask before disposal, repair or agreeing a settlement with another party. Keep carrier correspondence and evidence of the affected goods. Our cargo insurance and claims guide provides the companion claims reading.