UK to EU Cargo Insurance (Post‑Brexit): What UK Exporters Need to Know

Why post‑Brexit cargo insurance needs a fresh look

Shipping goods from the UK into the EU now comes with more friction: customs declarations, documentary checks, potential border delays, and more handoffs between carriers and warehouses. Every extra touchpoint increases the chance of loss, theft, damage, or temperature deviation—and it also increases the chance of a claim being disputed if paperwork is incomplete.

Cargo insurance still does one core job: it protects the value of goods in transit. But post‑Brexit, the “in transit” journey is longer, more complex, and more dependent on compliance.

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

Cargo insurance is designed to cover physical loss of or damage to goods while being transported. Policies are commonly arranged as:

• Single shipment cover (one‑off movements)

• Annual/open cover (multiple shipments over a period)

• Stock throughput (broader cover from supplier to customer, including storage)

Most UK-to-EU cargo policies are written on Institute Cargo Clauses:

• ICC(A) “All Risks”: broadest cover, but still has exclusions

• ICC(B): named perils, narrower

• ICC(C): very limited perils

“All risks” does not mean “everything.” Common exclusions include:

• Inherent vice (goods that naturally deteriorate)

• Insufficient packing

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

• Ordinary leakage/ordinary wear and tear

• Financial loss (e.g., missed sales) unless specifically insured

• War/strikes exclusions unless bought back

Post‑Brexit tip: as border delays have become more common, businesses often assume “delay” is covered. It usually isn’t. The damage caused by delay (for example, spoilage) may also be disputed unless temperature control and packaging are robust and evidenced.

Incoterms: the #1 cause of uninsured gaps

If you only take one thing from this guide, take this: Incoterms decide who is responsible for insurance (and when risk transfers).

Incoterms are not just shipping jargon—they determine:

• who arranges carriage

• who handles export/import formalities

• when risk transfers from seller to buyer

• who should insure the goods

Common Incoterms for UK-to-EU trade:

• EXW (Ex Works): buyer takes risk very early (often at seller’s premises)

• FCA (Free Carrier): risk transfers when goods are handed to the carrier

• CPT/CIP: seller pays carriage; CIP requires the seller to insure (usually to a higher standard)

• DAP/DDP: seller bears more responsibility; DDP includes import duties/taxes

Post‑Brexit reality: if you’re using EXW but you’re still “helping” with loading, paperwork, or arranging a courier, you may be taking on risk you didn’t price for. That can create a messy claim scenario where each party assumes the other insured the goods.

Quick checklist: align Incoterms with your insurance

• Confirm the Incoterm on every quote, order, and invoice.

• Match your cargo policy to the point where risk transfers.

• If you sell CIP, check the required level of cover and any buyer‑specific requirements.

• If you buy under EXW, ensure your policy starts at the supplier’s premises (including loading if needed).

Customs, documentation, and why claims get rejected

Brexit introduced more documentation and compliance steps, such as:

• commercial invoices with correct commodity codes

• packing lists

• proof of origin (where relevant)

• export declarations and import entries

• safety and security filings

Cargo insurers don’t insure “paperwork mistakes” directly, but paperwork affects whether a claim is payable. If goods are seized, delayed, or mishandled because documents were wrong, insurers may argue:

• the proximate cause was not an insured peril

• the loss arose from avoidable administrative error

• the insured failed to take reasonable precautions

Best practice: build a “claims‑ready” shipment file

For each shipment, keep a digital folder with:

• purchase order and sales invoice

• Incoterm confirmation

• packing spec and photos (before sealing)

• bill of lading/CMR/air waybill

• customs documents

• temperature logs (if applicable)

• delivery notes and receiver condition report

If you ever need to claim, this file often makes the difference between a fast settlement and weeks of dispute.

Border delays and storage: where does “transit” end?

A typical UK-to-EU movement might include:

• collection from UK premises

• consolidation at a UK hub

• port/terminal handling

• crossing

• EU terminal handling

• customs clearance

• temporary storage pending release

• final delivery

Many cargo policies include warehouse‑to‑warehouse cover, but it’s not unlimited. Watch for:

• time limits (e.g., 60 days from discharge)

• exclusions for storage not “in the ordinary course of transit”

• requirements to notify insurers if goods are held

Post‑Brexit, “temporary storage” is more common. If goods sit in a bonded warehouse for longer than expected, you may need extensions or a different structure (like stock throughput).

Theft and security: higher risk at touchpoints

Theft risk tends to rise at:

• service stations and lay‑bys

• unsecured yards

• cross‑docking facilities

• ports and inland border facilities

Insurers may impose conditions such as:

• minimum security standards for overnight stops

• use of approved parking areas

• sealed trailers and seal records

• tracking and geofencing

• driver key control

If a policy has security conditions and they aren’t followed, a theft claim can be reduced or declined.

Temperature‑controlled and high‑value goods: special considerations

For pharmaceuticals, medical devices, electronics, and other high‑value or sensitive goods, the post‑Brexit environment adds risk:

• longer transit times

• more inspections

• more opportunities for temperature excursion

• more reliance on third‑party logistics providers

Consider:

• Temperature deviation cover (where available)

• specifying acceptable ranges and monitoring requirements

• packaging validation and documented SOPs

• clear handover procedures with 3PLs

For medical technology manufacturers, it’s also worth checking whether the cargo policy dovetails with product liability and recall planning—especially if damaged goods could later cause downstream issues.

Common exclusions and “gotchas” in UK-to-EU cargo insurance

Here are the issues that most often surprise businesses:

1. Under‑insurance and average: If you insure for less than the true value, insurers may apply average and reduce the payout.

2. Incorrect basis of valuation: Many policies insure invoice value plus a percentage (e.g., +10%). Make sure it reflects your real exposure.

3. Packaging disputes: If packaging isn’t suitable for the mode of transport, claims can be challenged.

4. Unattended vehicle exclusions: Theft from an unattended vehicle may be excluded unless strict conditions are met.

5. Delay and consequential loss: Usually excluded.

6. Sanctions and prohibited trade: Cover may be void if sanctions apply.

7. Unapproved routes or carriers: Some policies restrict carriers or routes.

How to choose the right cover structure

Single shipment cover

Best for:

• occasional exporters

• high‑value one‑off movements

Watchouts:

• admin burden per shipment

• risk of forgetting to declare a shipment

Annual/open cover

Best for:

• regular shipments

• businesses that want consistent terms

Watchouts:

• declaration accuracy (values, destinations, conveyances)

• ensuring all shipments are captured

Stock throughput

Best for:

• businesses with complex supply chains

• goods that sit in storage between legs

Watchouts:

• requires good inventory and process controls

Claims: what to do when something goes wrong

When loss or damage is discovered:

1. Mitigate immediately: separate damaged goods, prevent further loss.

2. Notify the carrier and insurer fast: late notification can complicate recovery.

3. Preserve evidence: photos, seals, packaging, temperature logs.

4. Obtain a survey report: insurers may appoint a surveyor.

5. Keep salvage records: what was disposed of, what was recovered.

Evidence that strengthens a claim

• clear pre‑dispatch photos

• sealed trailer records

• signed condition reports on delivery

• CCTV or yard logs (where relevant)

• independent surveyor notes

Practical steps to reduce premium and reduce risk

Insurers price cargo based on frequency, values, routes, and loss history. You can often improve terms by showing strong controls:

• standardised packing specs and training

• approved carrier list and audits

• robust supplier and 3PL contracts

• tracking for high‑value loads

• clear Incoterms and contract wording

• documented claims process and incident reporting

FAQs: UK to EU cargo insurance after Brexit

Do I need cargo insurance if the carrier has liability cover?

Carrier liability is not the same as cargo insurance. Carrier liability is limited, depends on the cause of loss, and may be capped by weight under conventions like CMR. Cargo insurance is designed to cover the goods’ value (subject to policy terms).

Is “all risks” cargo insurance enough for EU shipments?

Often, yes—but only if the policy is correctly set up (warehouse‑to‑warehouse, correct valuation, correct Incoterms) and you comply with conditions. “All risks” still has exclusions.

Are customs delays insured?

Delay itself is usually excluded. Physical loss or damage may be covered, but insurers can dispute spoilage or deterioration if it’s linked to delay and inadequate packaging/temperature control.

What value should I insure?

Commonly invoice value plus an uplift (often 10%). Some businesses insure replacement cost plus freight and duty exposure. The right answer depends on your contracts and what you would actually lose.

Does my policy cover returns from the EU back to the UK?

Not automatically. Many policies cover outbound shipments only unless returns are declared or specifically included.

What if the buyer arranges transport—should I still insure?

If risk transfers early (e.g., EXW/FCA), the buyer should insure. But if you have reputational exposure or you’re contractually expected to replace goods, you may still choose to insure your interest.

Final takeaway

Post‑Brexit, UK-to-EU cargo movements involve more documentation, more handling points, and more opportunities for disputes. The best cargo insurance outcome comes from aligning Incoterms, policy wording, and operational controls—so that when something goes wrong, you can prove what happened and get paid quickly.

Call to action: If you ship goods from the UK into the EU, it’s worth reviewing your Incoterms, valuation basis, and warehouse‑to‑warehouse terms to make sure you’re not carrying uninsured exposure.