Summer Logistics: Peak Season Freight Insurance Needs

For many UK businesses, summer is peak season for moving goods. Retailers build inventory for promotions, manufacturers push higher volumes, construction projects accelerate, and events and hospitality drive demand for time-critical deliveries.

The upside is obvious: more orders and more revenue. The downside is that the logistics chain runs hotter. Capacity tightens, routes change, temporary labour increases, and goods spend more time in transit or in short-term storage. That combination can turn a small incident into a big loss.

Freight insurance (often called cargo insurance or goods in transit insurance) is designed to protect the value of goods while they’re moving through the supply chain. But “having insurance” isn’t the same as “having the right cover for peak season”. Summer brings specific exposures: heat, theft, congestion, delays, and increased handling.

This guide explains the freight insurance needs that typically spike in summer, the cover options to consider, and the practical steps that reduce claims.

What freight insurance actually covers (and what it doesn’t)

Freight insurance is intended to cover physical loss of or damage to goods while in transit. Depending on the policy, it may also cover related costs (for example, salvage, debris removal, or certain additional expenses).

In the UK, cover is commonly arranged in a few ways:

• Annual open cover: ongoing cover for regular shipments, often with declared values and agreed terms.

• Single shipment cover: for one-off or occasional movements.

• Goods in transit (GIT): often used for domestic UK road transit, sometimes including loading/unloading.

• Marine cargo / transit: used for international movements and multimodal transport (sea, air, road, rail).

Common cover “levels” are often based on Institute Cargo Clauses:

• All Risks (ICC A): broadest cover, but still subject to exclusions.

• Named perils (ICC B / ICC C): narrower cover, only for specified causes.

Typical exclusions to watch (especially in summer)

Even “all risks” policies exclude certain scenarios unless specifically bought back or arranged differently. Common exclusions include:

• Inherent vice (goods deteriorating due to their own nature)

• Ordinary leakage, ordinary loss in weight/volume

• Insufficient or unsuitable packing

• Delay (often excluded even if the delay is caused by an insured event)

• Wear and tear

• Unattended vehicle theft conditions (e.g., no forced entry, no approved locks, no secure parking)

• Temperature deviation unless temperature-controlled cover is included

• Cyber events (policy dependent)

• War/strikes (often separate clauses)

Summer peak season tends to expose these exclusions more frequently: heat-related spoilage, packing failures under higher handling volume, and theft from vehicles parked in congested areas.

Why summer peak season increases freight risk

Peak season changes the operating environment. Here are the main drivers.

1) More handling, more touchpoints

When volumes rise, goods are loaded, cross-docked, and re-handled more often. Each touchpoint increases the chance of:

• Impact damage (forklift punctures, crushed cartons)

• Mis-picks and misroutes

• Label damage and documentation errors

2) Capacity pressure and subcontracting

When primary carriers are full, businesses may use:

• Subcontractors

• Spot-market hauliers

• Temporary drivers

• Alternative routes and hubs

That can create gaps in contractual liability, security standards, and claims handling.

3) Heat and temperature swings

Summer heat affects more than refrigerated goods. It can:

• Warp packaging and adhesives

• Increase risk of condensation when moving between chilled and warm environments

• Accelerate chemical reactions (paints, resins, batteries)

• Damage electronics left in hot trailers

4) Theft risk rises with predictable patterns

Peak season often means more high-value loads moving on predictable schedules. Theft trends commonly include:

• Curtain slashing at motorway services

• Theft from unattended vehicles

• “Redirection fraud” (changing delivery details)

• Warehouse and yard theft during busy periods

5) Delays and congestion

Summer brings roadworks, holiday traffic, port congestion, and weather disruption. Even if your policy excludes delay, delays can still:

• Increase time goods are exposed to theft

• Increase time in uncontrolled storage

• Create missed delivery windows and contractual penalties

The key freight insurance covers to review before peak season

If you’re heading into a busy summer, these are the areas worth reviewing with your broker or insurer.

Sum insured and basis of valuation

Make sure the insured value reflects what you actually stand to lose. Common valuation bases include:

• Invoice value

• Invoice value + 10% (to reflect profit and incidental costs)

• Cost, insurance and freight (CIF)

Underinsurance can lead to reduced claim payments. Peak season is exactly when shipment values often increase.

Territorial limits and modes of transport

Check:

• UK-only vs UK + EU vs worldwide

• Whether cover applies to road, sea, air, rail, and multimodal

• Any sanctioned territories or restricted routes

If you’re using new ports, new forwarders, or different routes to manage capacity, your policy needs to match reality.

Loading, unloading, and temporary storage

Many losses happen when goods are:

• Being loaded/unloaded

• Sitting on a tail lift

• Stored overnight in a trailer

• Held at a cross-dock or consolidation hub

Confirm whether your policy includes:

• Loading/unloading risks

• Transhipment

• Short-term storage in transit (sometimes limited to a number of days)

Theft conditions and security requirements

Theft cover often comes with conditions. Common requirements include:

• Approved locks, immobilisers, and alarms

• No leaving vehicles unattended except in secure compounds

• Forced entry evidence

• Tracking for high-value loads

• Driver key control procedures

If your operation uses subcontractors, ensure they can comply. A claim can be declined if security conditions aren’t met.

High-value and high-theft goods

Peak season frequently involves high-value goods such as:

• Consumer electronics

• Alcohol and spirits

• Branded clothing and footwear

• Cosmetics

• Pharmaceuticals and medical devices

• Copper and metals

These may require:

• Higher security standards

• Specific endorsements

• Higher deductibles

• Separate limits per conveyance

Refrigerated and temperature-controlled cargo

If you ship chilled, frozen, or temperature-sensitive goods, ask specifically about:

• Temperature deviation cover

• Breakdown of refrigeration units

• Power failure during storage in transit

• Data logger evidence requirements

Heat-related spoilage claims are common in summer and can be contentious without clear temperature records.

Fragile goods and packaging standards

Insurers may expect packaging to be suitable for the mode of transport and the season. Consider:

• Pallet quality and stretch-wrap standards

• Edge protection and strapping

• Moisture barriers

• Shock indicators for sensitive equipment

If packing is outsourced, confirm who is responsible and how it’s documented.

Delay, consequential loss, and contractual penalties

Many businesses assume freight insurance covers the commercial impact of late delivery. Often it doesn’t.

If missed delivery windows could cause significant losses, you may need to explore:

• Business interruption (for your own operations)

• Contingent business interruption (supply chain dependent)

• Specialist delay cover (where available and appropriate)

Even if you can’t insure the full consequential loss, you can reduce exposure with better contracts and contingency planning.

Incoterms and liability: who should insure the goods?

One of the most common causes of uninsured loss is misunderstanding responsibility.

Incoterms (such as EXW, FCA, FOB, CIF, DAP, DDP) define who is responsible for transport, risk transfer, and certain costs. They do not automatically create insurance.

Practical steps:

• Identify at what point risk transfers from seller to buyer.

• Confirm who is arranging carriage and who is arranging insurance.

• Make sure the insured party has an insurable interest at the time of loss.

If you’re buying goods on terms where risk transfers early (for example, EXW), you may need cover from the moment goods leave the supplier’s premises.

Common summer claims (and how to reduce them)

Here are frequent peak-season claim scenarios and the controls that help.

Theft from unattended vehicles

Scenario: A driver stops at a motorway service area; the curtain is slashed and pallets are stolen.

Reduce risk by:

• Using secure parking and pre-approved stops

• Avoiding predictable routes and schedules for high-value loads

• Using hard-sided vehicles for targeted goods

• Fitting tracking and geofencing

• Training drivers on stop discipline and key control

Heat damage and spoilage

Scenario: Temperature-sensitive goods arrive out of spec after sitting in a hot trailer.

Reduce risk by:

• Using validated temperature-controlled equipment

• Pre-cooling trailers and limiting door-open time

• Using data loggers and keeping records

• Planning routes to minimise dwell time

Packaging failure under higher handling volume

Scenario: Pallets collapse during cross-docking due to weak stretch-wrap or poor pallet quality.

Reduce risk by:

• Standardising pallet specs and wrap patterns

• Using corner boards and strapping where needed

• Auditing third-party packing

• Labelling fragile and stack limits clearly

Misdelivery and redirection fraud

Scenario: A fraudster impersonates a customer and changes the delivery address.

Reduce risk by:

• Verifying changes via a known contact method

• Using two-person approval for address changes

• Locking down who can amend delivery instructions

• Using proof-of-delivery controls

Water damage from sudden storms

Scenario: Goods are left exposed during loading when a heavy downpour hits.

Reduce risk by:

• Using covered loading bays

• Scheduling to avoid open-air dwell time

• Using waterproof pallet covers

What to check in your policy wording before summer starts

A quick checklist you can run through with your broker:

• What clause basis applies? ICC A vs B/C; any special endorsements.

• Any per-conveyance limit? (Maximum payable per vehicle/container.)

• Any single location limit? (For storage in transit.)

• Any high-value item limits? (Phones, laptops, pharmaceuticals, etc.)

• Any theft conditions? Secure parking, tracking, immobilisers.

• Any unattended vehicle exclusions? Time limits, forced entry requirements.

• Any temperature deviation exclusions? Evidence requirements.

• Any packaging requirements? Defined standards or “suitable packing” clauses.

• Any claims notification deadlines? Some policies require prompt notice.

• Any subcontractor conditions? Approved carrier lists or due diligence.

Documentation that makes claims smoother

Insurers don’t just pay because a loss happened; they pay when it’s evidenced and falls within cover.

For peak season, tighten your documentation:

• Commercial invoice and packing list

• Bill of lading / CMR / consignment note

• Photos of packaging and load condition at dispatch

• Seal numbers and handover records

• Temperature logs (where relevant)

• Proof of delivery and discrepancy notes

• Incident reports and police crime reference numbers (for theft)

A simple “dispatch photo” process can make a big difference in disputed damage claims.

How to choose the right approach: annual cover vs per-shipment

If you ship frequently in summer, annual open cover can be more efficient and reduce the risk of forgetting to insure a shipment.

Single shipment cover can work well for:

• One-off high-value moves

• Unusual routes or modes

• Project cargo

The right choice depends on shipment frequency, values, and how consistent your risk profile is.

A note on carrier liability: don’t rely on it

Many businesses assume the carrier will pay if something goes wrong. In practice:

• Carrier liability is often limited by international conventions and contract terms.

• Liability may be based on weight, not value.

• Carriers can deny liability if packaging was inadequate or if exclusions apply.

Freight insurance is designed to protect your financial interest in the goods, not just recover limited liability from a carrier.

Conclusion: treat summer like a planned risk, not a surprise

Peak season doesn’t have to mean peak losses. The businesses that handle summer best do two things early:

1. Align insurance with reality: values, routes, subcontractors, storage, and security.

2. Reduce avoidable claims: packaging standards, temperature controls, and theft discipline.

If you’d like, we can sanity-check your current freight insurance set-up for summer: what you ship, typical values, routes, and whether you’re using subcontractors or temperature-controlled transport.

FAQs: Summer peak season freight insurance

Does freight insurance cover delays?

Usually not. Many policies exclude delay even if the delay is caused by an insured event. Some specialist covers may be available, but it’s case-specific.

Is “all risks” freight insurance truly all risks?

It’s broad, but not unlimited. Exclusions often include inadequate packing, inherent vice, delay, and certain theft conditions.

Do I need separate cover for storage in transit?

Often, yes or it may be limited. Many policies include short-term storage in transit up to a time limit, with a separate location limit.

What if I use subcontractors during peak season?

You can still be covered, but policies may require due diligence or approved carriers. Make sure subcontractors meet security conditions.

Are high-value goods insured automatically?

Not always. Some policies have item-specific limits or require declaration and additional security measures.

How can I reduce the chance of a theft claim being declined?

Follow security conditions precisely: secure parking, approved locks, tracking where required, and clear driver procedures. Keep evidence.

Do Incoterms decide who insures the goods?

They help define when risk transfers, but they don’t automatically arrange insurance. Confirm in your contract who is responsible for insurance and from what point.

What evidence helps most for a damage claim?

Dispatch photos, packing specs, clean handover records, and prompt reporting. For temperature claims, data logs are essential.

Is goods in transit insurance enough for international shipments?

Sometimes, but international and multimodal shipments often need marine cargo/transit cover with appropriate clauses and territorial limits.

Should I increase my limits just for summer?

If shipment values and volumes rise, it’s worth reviewing per-conveyance limits and annual declared values. Temporary increases can sometimes be arranged.