Import/Export Documentation & Freight Insurance: A Practical UK Guide

Introduction

If you import or export goods, paperwork is not “admin” — it’s the backbone of getting paid, clearing customs, and proving what happened if cargo is lost or damaged. At the same time, freight insurance (often called cargo insurance or marine cargo insurance) is what stops one incident in transit from wiping out your margin.

This guide explains the core import/export documents, how they link to Incoterms®, and how to choose freight insurance that matches your real exposure — with a UK lens.

Why documentation and insurance belong together

Most cargo claims and disputes come down to two things:

• Who was responsible at the point of loss (often defined by Incoterms® and the contract)

• Whether you can evidence what you shipped, its value, and its condition (your documents)

If you can’t prove quantity, packing, value, and the handover points, even a valid loss can become slow, reduced, or rejected.

The key parties in a shipment (and why they matter)

Understanding roles helps you collect the right paperwork:

• Exporter / Seller: Supplies goods and often provides commercial documents

• Importer / Buyer: Receives goods and handles import clearance (depending on Incoterms®)

• Freight forwarder: Books transport and coordinates documents

• Carrier: The shipping line, airline, road haulier or rail operator

• Customs broker / agent: Submits declarations and supports clearance

• Insurer: Provides cargo cover and claims support

Core import/export documents (what they are and why they matter)

1) Commercial invoice

The commercial invoice is the primary document for customs valuation and payment.

Typical contents:

• Seller and buyer details

• Invoice number and date

• Description of goods (clear and specific)

• HS/commodity codes (where applicable)

• Quantity, unit price, total value

• Currency

• Incoterms® rule and named place/port

• Country of origin

• Payment terms

Documentation tip: Ensure the description matches other documents (packing list, certificate of origin) to avoid customs queries.

2) Packing list

A packing list supports customs checks and helps prove what was shipped.

Typical contents:

• Package count and type (cartons, pallets, crates)

• Dimensions and weights (gross/net)

• Marks and numbers

• Contents per package

Insurance tip: A detailed packing list makes it easier to evidence partial losses and quantify damage.

3) Transport document (Bill of Lading / Air Waybill / CMR)

The transport document confirms carriage and is central to both delivery and claims.

• Bill of Lading (B/L): Sea freight document; can be a document of title depending on type

• Sea Waybill: Sea freight receipt (generally not a document of title)

• Air Waybill (AWB): Air freight document; not a document of title

• CMR consignment note: Road freight document for international carriage by road

Insurance tip: Keep copies of the signed transport document and any delivery notes with remarks (e.g., “packaging torn”, “wet cartons”). Clean receipts can make claims harder.

4) Certificate of origin (CO) and preferential origin documents

Origin documents show where goods were produced and may reduce duty under trade agreements.

Examples include:

• Certificate of Origin (issued by a chamber of commerce)

• Supplier declarations

• Preference statements (depending on agreement)

Documentation tip: Origin errors can lead to delays, duty re-assessments, and penalties.

5) Export and import customs declarations

For UK movements, you’ll typically deal with:

• Export declaration (UK export)

• Import declaration (UK import)

These declarations include commodity codes, values, origin, and procedure codes.

Insurance tip: Declarations help evidence the shipment value and can support claims for duty exposure if you insure duty.

6) Licences, permits and compliance documents

Certain goods require additional paperwork.

Examples:

• Dual-use goods controls

• Sanitary and phytosanitary (SPS) documents

• Product compliance documentation (e.g., UKCA/CE where relevant)

Documentation tip: If goods are held due to missing compliance documents, storage costs can mount quickly. Consider whether your policy includes storage, delay, or “held covered” provisions.

7) Insurance certificate

If insurance is arranged under the sales contract (common under CIF/CIP), the buyer may require an insurance certificate.

What it should show:

• Insured party and beneficiary (where applicable)

• Voyage details

• Sum insured and basis of valuation

• Cover level (e.g., Institute Cargo Clauses A/B/C)

• Excess and key conditions

8) Letter of credit (L/C) and banking documents (where used)

If you trade using letters of credit, document accuracy is critical. Banks check documents, not goods.

Common L/C documents:

• Commercial invoice

• Bill of lading / AWB

• Packing list

• Certificate of origin

• Insurance certificate

Documentation tip: Even small discrepancies can delay payment.

Incoterms® and where freight insurance fits

Incoterms® rules define responsibilities for costs and risk transfer. They do not replace your contract, but they heavily influence who should insure.

Two rules specifically require the seller to arrange insurance:

• CIF (Cost, Insurance and Freight): Sea/inland waterway only; seller insures to destination port (minimum cover)

• CIP (Carriage and Insurance Paid To): Any mode; seller insures to named place (higher minimum cover than CIF)

Important: Even when the other party “should” insure, you may still have exposure (for example, uninsured gaps, underinsurance, exclusions, or claims delays). Many businesses choose to insure their own interest regardless.

What is freight insurance (cargo insurance)?

Freight insurance protects goods while they are in transit, typically including:

• Sea, air, road and rail carriage

• Loading and unloading

• Temporary storage in the normal course of transit

It can be arranged:

• Per shipment (single transit)

• Under an open cover / annual policy (multiple shipments)

Common risks in transit (what actually goes wrong)

Cargo losses are not always dramatic. Common causes include:

• Rough handling and impact damage

• Water ingress (rain, sea spray, container leaks)

• Theft from vehicles, depots or containers

• Non-delivery / misdelivery

• Fire

• General average (shared loss after a major incident at sea)

• Temperature excursions (for sensitive goods)

• Contamination

• Inadequate packing or bracing

Documentation tip: Photos of packing, seals, and container condition at loading can be invaluable.

Types of cover: “All risks” vs named perils

Cargo policies often use the Institute Cargo Clauses:

• ICC (A): Broad “all risks” style cover (still subject to exclusions)

• ICC (B): Named perils, wider than C

• ICC (C): Basic named perils

“Freight insurance” sold as an add-on by carriers or platforms can be limited. A dedicated cargo policy is usually broader and more tailored.

Key extensions and options to consider

Depending on what you ship and how you ship it, consider:

• Theft and non-delivery extensions

• War and strikes clauses (often separate)

• Refrigeration / temperature deviation cover

• Exhibition / installation cover (if goods are moving to events)

• Duty and VAT (insure duty where you can’t recover it)

• Seller’s interest / buyer’s interest cover

• Contingency cover (when relying on another party’s insurance)

• General average and salvage charges

Valuation: how much should you insure?

A common basis is:

• Invoice value + freight + insurance + uplift (often 10% to cover anticipated profit)

Underinsurance can lead to proportional settlement. Make sure the insured value reflects real replacement cost and your contractual exposure.

What freight insurance typically does not cover (common exclusions)

Exclusions vary, but often include:

• Inherent vice (natural deterioration)

• Ordinary leakage/ordinary loss in weight or volume

• Insufficient or unsuitable packing

• Delay (unless specifically insured)

• Wilful misconduct

• Certain sanctions-related restrictions

Documentation tip: If you use third-party packing, keep packing specifications and invoices.

Carrier liability is not the same as cargo insurance

Carriers have limited liability under international conventions and their terms.

Key differences:

• Liability is often capped per kilo or per package

• The carrier may have defences (e.g., inadequate packing)

• Proving fault can be difficult

• Claims can be time-barred quickly

Cargo insurance is designed to pay for insured losses without needing to prove carrier negligence (subject to policy terms).

The claims process: what to do if something goes wrong

Speed and evidence matter.

Step 1: Mitigate and preserve evidence

• Stop further damage where safe to do so

• Keep packaging and damaged goods

• Take photos and video

Step 2: Note damage at delivery

• Add clear remarks on delivery notes

• If possible, refuse to sign “clean” if damage is visible

Step 3: Notify the insurer promptly

• Report as soon as you suspect loss or damage

• Follow policy notification requirements

Step 4: Arrange a survey (if required)

Insurers may appoint a surveyor to assess cause and quantum.

Step 5: Gather documents

Typical claim documents include:

• Commercial invoice

• Packing list

• Transport document (B/L, AWB, CMR)

• Delivery receipt with remarks

• Photos

• Repair/replacement quotes

• Customs documents (if relevant)

• Correspondence with carrier/forwarder

Step 6: Subrogation support

If the insurer pays, they may pursue recovery from the carrier. Keep timelines and communications.

Practical documentation checklist (quick reference)

Before shipping:

• Confirm Incoterms® and named place/port in writing

• Ensure invoice descriptions and values are accurate

• Prepare packing list with weights and package details

• Confirm licences/permits and compliance documents

• Verify transport booking and document instructions

• Confirm insurance cover level, valuation and any special terms

At loading:

• Photograph goods, packing, container condition and seal

• Record seal numbers

• Keep warehouse release notes

At delivery:

• Inspect promptly

• Note damage/shortage on paperwork

• Take photos before moving goods

Choosing the right freight insurance for your business

A good cargo policy should match:

• Your shipping patterns (UK imports, exports, EU movements, worldwide)

• Your modes (sea, air, road, courier)

• Your goods (fragile, high value, temperature sensitive)

• Your contractual terms (Incoterms®, customer requirements)

• Your risk appetite (excess level, claims handling speed)

If you ship regularly, an annual/open cover can reduce admin and avoid “forgotten shipment” gaps.

Common mistakes to avoid

• Assuming the carrier will pay the full loss

• Relying on the other party’s insurance without checking cover level and beneficiary

• Under-declaring values to save premium

• Not recording damage on delivery

• Poor packing and no evidence of packing standards

• Missing or inconsistent document descriptions

FAQs

Do I need freight insurance if I use CIF or CIP?

Often yes. CIF/CIP sets minimum insurance obligations on the seller, but you may still face gaps (underinsurance, exclusions, claims delays, or the wrong insured party). Many importers arrange contingency cover.

Is “all risks” cover really all risks?

No. ICC (A) is broad, but exclusions still apply (like inadequate packing, inherent vice, and delay unless covered).

Can I insure duty and VAT?

You can often insure duty (and sometimes VAT) where it represents a real, non-recoverable cost to you. Your broker can advise based on your trading model.

What documents are most important for a claim?

Usually the commercial invoice, packing list, transport document, and delivery receipt with remarks, plus photos and any survey report.

What’s the difference between cargo insurance and freight forwarder insurance?

A forwarder’s liability insurance protects the forwarder against their legal liability. It is not the same as insuring your goods.

Call to action

If you import or export goods and want to reduce disruption and protect your cashflow, it’s worth reviewing your Incoterms®, documentation process, and cargo cover together.

Speak to a specialist broker to arrange freight insurance that matches your routes, goods, and contractual responsibilities — and to make sure you can evidence a claim if the worst happens.