Who insures China goods shipped to my port?
The agreed sales contract and Incoterm determine who must arrange cargo insurance. A UK sourcing company booking freight does not itself confirm cover. Before dispatch, check the insured party, actual China-to-destination route, cover endpoints and claim contact. Agree these details in writing with Cambridge China Bridge.
Start with your contract, not the freight booking
Ask whether the UK sourcing company is your seller or acts as your purchasing agent. If it resells the goods, check your contract with that company rather than relying on its factory purchase terms. If it acts as an agent, ask which sales contract governs your purchase and who has been instructed to arrange insurance. Record who arranges cover, who pays and what confirmation you will receive.
Under CIF, the seller arranges insurance, while risk passes when the goods are loaded on the vessel in China. Under FOB, the voyage is the buyer's risk; confirm any insurance arrangements with your insurer or insurance broker. Use Incoterms explained for the underlying terms. When buying through a UK company, ask for the agreed term, named port and applicable edition in writing.
Match the cover to the actual journey
Give the insurer or broker the actual route: factory collection, consolidation warehouse, Chinese departure port, any transfer ports and your destination port. Say explicitly whether the goods travel directly from China or pass through the UK. Ask them to confirm that the policy accepts this route and your destination, rather than assuming that a UK company's policy covers it.
Ask where cover starts and ends, and whether it includes consolidation, temporary storage, loading, unloading and onward delivery after port arrival. Put any uncovered handover into the shipping plan and agree who will arrange cover for it. The cargo insurance arrangement guide covers the general preparation checks; use your actual overseas route when applying them.
Check whose interest is insured
Request the insurance certificate and relevant policy wording before dispatch. Ask the broker to explain whose financial interest is insured, whether you can claim directly, who receives any payment and whether any transfer or endorsement is needed. Match the goods description, shipment reference, destination, insured value and currency to your order.
A forwarder's liability insurance does not insure the goods themselves. Ask for confirmation of cargo cover for this shipment rather than accepting a general statement that the forwarder is insured. For repeat orders, ask whether each shipment needs a declaration and whether the route fits the policy; single shipment or annual cargo insurance explains that choice.
Ask about your goods and likely losses
Describe the goods, packaging and handling needs to the insurer or broker. Ask how the proposed cover treats breakage, theft, wet damage, condensation, temperature damage and inadequate packing. Ask separately about delay, production defects, war or strikes. Request written answers about exclusions, deductibles and the basis used to value a loss.
Compare the insurance line with the rest of the quotation: who purchases the policy, what journey it covers and which documents will be supplied. Use quote checking to identify unclear responsibilities before accepting the order. Confirm destination import rules with your own customs broker, and ask your insurer or insurance broker whether any destination-specific insurance arrangements need checking.
Agree the claim contact before arrival
Obtain the insurer's or broker's claim contact and ask who you should notify at your port. Confirm the notification deadline stated in the policy, required documents, survey arrangements and instructions for keeping damaged goods and packaging. Keep the invoice, packing list, transport documents, insurance evidence and dispatch photographs together.
If damage is found, record the condition and notify the agreed contacts promptly. Ask for instructions before disposing of, repairing or returning affected goods. Follow the damaged shipment arrival checklist for practical evidence collection. If the route or delivery endpoint changes, obtain written confirmation of cover before proceeding.
Frequently asked questions
Does a UK sourcing company automatically insure my shipment?
Do not assume so. Check the sales contract and agreed Incoterm, then request shipment-specific confirmation naming the insured party, covered journey and claim contact.
Who arranges insurance under CIF or FOB?
Under CIF, the seller arranges insurance, but risk passes on loading in China. Under FOB, confirm any voyage insurance arrangements with your insurer or insurance broker. Check the agreed contract and actual policy before dispatch.
Can a UK policy cover goods sent directly from China?
Ask the insurer or broker to confirm the actual China-to-destination route, your insured interest and claim arrangements in writing. The sourcing company's UK address does not establish cover.
Does cargo insurance continue after arrival at my port?
Check the policy's exact endpoint. Ask whether unloading, port storage and onward delivery are covered, and arrange any additional cover before that part of the journey starts.