Weather Damage During Transport: Insurance Coverage

Introduction

Bad weather is one of the few risks that can disrupt almost any supply chain, regardless of the industry. High winds can overturn vehicles, heavy rain can soak packaging, freezing temperatures can crack liquids and damage electronics, and storms can delay deliveries long enough to spoil temperature-sensitive goods.

If you move stock, equipment, raw materials, or finished products by road, sea, air, or rail, the big question is simple: if the weather damages your goods in transit, who pays?

In this guide, we’ll break down how weather-related transit losses happen, which insurance policies may respond, what evidence insurers typically need, and the practical steps that reduce both loss frequency and claim disputes.

What counts as “weather damage” during transport?

Weather damage is any physical loss or deterioration caused directly or indirectly by weather conditions while goods are being transported, loaded, unloaded, or temporarily stored in the course of transit.

Common examples include:

• Rainwater ingress into a trailer, container, or packaging

• Flooding at a depot, port, or distribution centre while goods are awaiting onward movement

• Wind damage, such as a vehicle overturning or a container shifting and crushing cargo

• Hail damage to exposed items or poorly protected loads

• Snow and ice, including freezing damage to liquids, adhesives, pharmaceuticals, and some chemicals

• Heat damage, such as warping, melting, or degradation of temperature-sensitive goods

• Storm-related accidents, where poor conditions contribute to a collision or loss of control

• Saltwater damage during sea transit (often weather-driven through heavy seas)

Not all weather-related losses are treated the same by insurers. A key distinction is whether the loss is:

• Sudden and accidental (e.g., a storm tears a trailer curtain), or

• Gradual / foreseeable / preventable (e.g., goods left uncovered in persistent rain)

That distinction often determines whether a claim is paid in full, reduced, or declined.

Who is responsible for goods in transit?

Responsibility depends on the contract, the transport mode, and the agreed terms of trade.

Incoterms and contractual responsibility

If you buy or sell goods internationally, Incoterms (such as EXW, FOB, CIF, DAP) can shift the point at which risk transfers from seller to buyer. Weather damage may occur after the risk has transferred, even if the seller arranged the transport.

If you’re unsure, check:

• Purchase order terms

• Sales contract

• Freight forwarder agreement

• Incoterms used on invoices

Carrier liability vs cargo insurance

Many businesses assume the carrier “automatically” covers cargo damage. In reality:

• Carrier liability is usually limited by law/contract and may exclude certain causes.

• Cargo (goods in transit) insurance is designed to cover the cargo owner’s financial loss, subject to policy terms.

In short: carrier liability can help, but it’s rarely a complete solution for weather damage.

Which insurance policies may cover weather damage in transit?

Weather damage during transport may be covered under one or more of the following.

1) Goods in Transit (GIT) insurance

Goods in Transit insurance is the most direct solution for weather damage to cargo while being transported.

Depending on the policy wording, it can cover:

• Loss or damage to goods while in transit by road/rail

• Loading and unloading (sometimes limited)

• Temporary storage in the ordinary course of transit (subject to time limits)

Some policies are written on a named perils basis (only specific causes are covered). Others are written on an all risks basis (broader, but still with exclusions).

Weather-related perils may be covered, but the insurer will look closely at:

• Packaging and securing

• Vehicle suitability

• Whether reasonable precautions were taken

• Whether the damage was sudden/accidental

2) Marine cargo insurance (including sea and air freight)

Marine cargo insurance is commonly used for international shipments and can cover transit by:

• Sea

• Air

• Road/rail as part of an international movement

Many marine cargo policies are written using Institute Cargo Clauses (ICC), typically:

• ICC (A) – broad “all risks” style cover (with exclusions)

• ICC (B) – more limited named perils

• ICC (C) – basic named perils

Weather damage is more likely to be covered under broader clauses, but exclusions and conditions still matter.

3) Haulier’s liability / carrier’s liability insurance

If you are a haulier or carrier, you may hold haulier’s liability (or similar) insurance. This protects you against legal liability for cargo loss/damage.

Important points:

• Liability is often limited per tonne or per package.

• Some weather-related losses may be excluded or only partly recoverable.

• If the contract says you’re not liable for certain weather events, the cargo owner may have no claim against you.

For cargo owners, this is why relying on the carrier’s insurance can be risky.

4) Stock insurance (property insurance) – limited relevance

Standard business contents/stock cover usually applies at your premises, not in transit. Some policies include limited “in transit” extensions, but these can be narrow.

If you frequently move high-value stock, a dedicated GIT or marine cargo policy is usually more appropriate.

5) Business interruption (BI) – knock-on losses

Even if cargo damage is covered, the bigger cost may be operational disruption:

• missed production deadlines

• lost contracts

• penalties

• inability to fulfil orders

Business interruption insurance may respond if it is triggered by an insured event at your premises (or sometimes at a supplier/customer location, depending on extensions). BI is not typically triggered purely by cargo damage unless the policy is specifically arranged that way.

Common exclusions and claim pitfalls for weather damage

Weather damage claims often fail due to policy exclusions or because insurers argue the loss was preventable.

Inadequate packaging

If goods were not packaged for the journey and conditions, insurers may decline or reduce claims.

Examples:

• Cardboard packaging used for outdoor loading in heavy rain

• No moisture barrier for goods prone to corrosion

• No insulation for freeze-sensitive goods

Unattended vehicles and security conditions

Some policies impose conditions such as:

• vehicles must be locked

• no overnight parking in unsecured areas

• alarms/immobilisers required

Weather events can coincide with theft risk (e.g., delays causing overnight stops). A breach of conditions can complicate claims.

Wear and tear / gradual deterioration

Insurers may argue damage is due to:

• condensation over time

• poor ventilation

• gradual damp

• inherent vice (the goods naturally deteriorate)

This is especially relevant for:

• food and drink

• timber

• textiles

• electronics

Delay and consequential loss

Many cargo policies exclude loss caused by delay, even if the delay is weather-related.

Example: a refrigerated shipment is delayed by storms and spoils. If the policy excludes delay-related deterioration, the claim may be declined unless spoilage is specifically covered.

Temperature control failures

If temperature-sensitive goods are damaged, insurers will ask:

• Was the vehicle/reefer unit maintained?

• Were temperature logs kept?

• Was the set point correct?

• Was there a power failure?

If the proximate cause is equipment failure rather than weather, the claim may fall under different wording.

Poor load securing

Wind and sudden manoeuvres can shift loads. If the load was not properly secured, insurers may treat the loss as negligence or failure to take reasonable precautions.

What insurers look for when assessing a weather damage claim

To pay a claim, insurers typically want to establish:

1. When and where the damage occurred

2. What caused it (the proximate cause)

3. Whether the cause is insured under the policy

4. Whether any exclusions/conditions apply

5. The value of the loss and salvage potential

Helpful evidence includes:

• Photos/video of damage, packaging, vehicle/container condition

• Delivery notes with damage remarks (signed at point of receipt)

• Weather reports for the route/time (Met Office data can help)

• Driver statements and incident reports

• CCTV from depots/ports where available

• Temperature logs for refrigerated shipments

• Proof of value: invoices, stock records, production costs

• Surveyor reports (marine cargo claims often require surveys)

A common mistake is accepting delivery “clean” and only discovering damage later. If you can, inspect on arrival and note any issues immediately.

Practical risk reduction: how to prevent weather damage (and improve claim outcomes)

Insurance is essential, but prevention reduces downtime and makes claims smoother.

Improve packaging and protection

• Use moisture barriers, shrink wrap, and desiccants where appropriate

• Use pallets and keep goods off the floor of containers

• Use corner protection and straps to prevent crushing

• For sea freight, consider corrosion protection and sealed packaging

Choose the right transport method

• Curtain-side vs box trailers

• Covered loading bays

• Temperature-controlled transport for sensitive goods

Route and weather planning

• Build weather monitoring into dispatch planning

• Allow contingency time during storm seasons

• Avoid flood-prone routes where possible

Document everything

Good documentation helps prove the cause and timing of damage.

• Pre-dispatch photos

• Seal numbers for containers

• Condition reports at handover

Contract clarity

Make sure contracts and Incoterms align with your insurance.

• Who arranges insurance?

• Who bears risk at each stage?

• What are the liability limits?

How to choose the right insurance for weather damage in transit

When arranging cover, focus on these key points.

Cover basis: all risks vs named perils

If weather damage is a major concern, broader cover is usually preferable.

Ask:

• Does the policy cover rainwater ingress?

• Does it cover flood at a depot during transit?

• Does it cover storm-related overturning?

Geographic and transit scope

• UK only vs worldwide

• Road only vs multimodal

• Any exclusions for certain territories or routes

Storage in transit

Many policies limit “storage in transit” to a set number of days.

If goods regularly sit at:

• ports

• consolidation warehouses

• cross-dock hubs

…make sure the policy matches your reality.

High-value items and single-load limits

Check:

• maximum value per vehicle

• maximum value per consignment

• any inner limits for certain items (electronics, alcohol, pharmaceuticals)

Excess and claims handling

• What is the excess for water damage?

• Are there different excesses for theft vs damage?

• Do you have access to specialist claims support?

What to do immediately after weather damage occurs

A fast, structured response can protect safety, reduce loss, and strengthen your claim.

1. Make the situation safe (especially after an accident or flood)

2. Prevent further damage (cover goods, move to dry storage, isolate wet items)

3. Document the scene (photos, videos, weather conditions, time/location)

4. Separate damaged and undamaged stock

5. Keep packaging and seals (do not discard evidence)

6. Notify the carrier and insurer promptly

7. Arrange a survey if required (common for marine cargo)

8. Mitigate loss (salvage, drying, rework) and keep records of costs

Mitigation costs are sometimes covered, but only if they are reasonable and well documented.

Frequently asked questions (FAQs)

Does goods in transit insurance cover rain damage?

Often yes, but it depends on policy wording and whether the damage was sudden and accidental. Claims can be affected by packaging quality and whether reasonable precautions were taken.

Is flooding at a depot covered while goods are waiting to be delivered?

It may be covered if the policy includes storage in transit and the time limits are not exceeded. If goods were stored for longer than allowed, the insurer may treat it as static storage (requiring different cover).

If a storm delays delivery and goods spoil, is that covered?

Not always. Many policies exclude loss caused by delay, even if the delay is due to weather. If you ship perishable or temperature-sensitive goods, ask specifically about spoilage and deterioration cover.

Can I claim if the carrier says they aren’t liable?

Possibly, if you have your own cargo/GIT insurance. Carrier liability and cargo insurance are different. Your own policy may pay even when the carrier has no legal liability.

What if the goods were damaged during loading in heavy rain?

Some policies include loading/unloading cover, but insurers may scrutinise whether the goods were left exposed unnecessarily. Covered loading areas and documented procedures can help.

Do I need marine cargo insurance for UK deliveries?

Not necessarily. For UK-only movements, a dedicated goods in transit policy is common. Marine cargo insurance is more typical for international shipments or multimodal transit.

How can I prove the damage was caused by weather?

Photos, delivery notes with damage remarks, driver statements, temperature logs, and independent weather data for the time and route all help. The key is showing when the damage occurred and linking it to the weather event.

Final thoughts

Weather is unpredictable, but your insurance arrangements don’t have to be. The right goods in transit or marine cargo policy can protect your balance sheet when storms, floods, freezing temperatures, or extreme heat damage goods on the move.

If you regularly transport high-value or sensitive items, it’s worth reviewing your cover basis, storage-in-transit limits, and exclusions around delay, packaging, and deterioration. A small change in wording can make a big difference when the next weather event hits.

If you’d like, tell me what you typically transport (type of goods, average consignment value, UK-only vs international), and I can suggest the best policy structure and the key questions to ask your insurer.