How to Reduce Cargo Insurance Costs - Tips for Businesses

CALL FOR EXPERT ADVICE
GET A CARGO QUOTE

Practical steps to reduce your cargo insurance premiums without cutting corners on protection - for importers, exporters, manufacturers and traders.

CALL FOR EXPERT ADVICE
GET A CARGO QUOTE

We compare quotes from leading cargo insurers

  • Allianz
  • Aviva
  • QBE
  • RSA
  • Zurich
  • NIG

REDUCING CARGO INSURANCE COSTS - WITHOUT REDUCING COVER

  • Risk

    MANAGE RISK BETTER

  • Data

    IMPROVE RISK DATA

  • Routes

    OPTIMISE ROUTES & TERMS

  • Broker

    USE A SPECIALIST BROKER

Premiums Are Driven by Risk - Reduce the Risk, Then Negotiate the Price

Insurers look at the type of goods, routes, volumes, claims history and your risk controls. By tightening up how you pack, document, route and insure shipments, you can often reduce costs while keeping or even improving your level of protection.

Practical Ways to Reduce Cargo Insurance Premiums

Small changes in process, packaging and documentation can make a big difference to price and terms.

1. Improve Packing & Stowage Standards


  • Use packaging appropriate to the route, handling and fragility of the goods
  • Standardise palletisation and container loading plans
  • Document packing methods - this reassures underwriters and supports claims
  • Work with carriers who follow recognised loading guidelines

2. Review Routes, Modes & Carriers


  • Avoid high-risk ports and congestion “hotspots” where possible
  • Consider alternative modes (e.g. short-sea vs deep-sea, or rail vs road)
  • Use reputable, contractually solid carriers and forwarders
  • Consolidate volume through preferred carriers for better terms

3. Optimise Sums Insured & Basis of Valuation


  • Check that declared values are accurate - not inflated
  • Use a clear formula (e.g. invoice + freight + 10%) agreed with insurers
  • Separate unusually high-value items for specific terms if needed
  • Avoid underinsurance - that can hurt you at claim stage

4. Consider Higher Deductibles (Excesses)


  • Take a realistic excess that reflects your risk appetite
  • Use higher deductibles for frequent, low-value losses
  • Keep cover for serious, high-impact incidents
  • Ask for options with different excess levels and compare savings

Smarter Buying: Policy Structure & Buying Strategy

5. Switch from Ad Hoc to Annual/Open Cover


  • Regular shippers usually save with an annual or open-cover policy
  • Avoid paying “one-off” premiums on every shipment
  • Gain consistent terms and easier administration

6. Centralise Buying Across Group Companies


  • Combine volume from multiple subsidiaries into one programme
  • Negotiate better overall rates and conditions
  • Standardise Incoterms and responsibilities

7. Clarify Incoterms & Who Insures What


  • Avoid insuring shipments where the other party is already responsible
  • Align your Incoterms (FOB, CIF, EXW, DAP etc.) with your insurance approach
  • Reduce duplication of cover between buyer, seller and forwarder

8. Use Claims History to Your Advantage


  • Analyse claims by route, product and cause
  • Show insurers how you’ve addressed recurring issues
  • Present improvements and risk controls at renewal

Which Businesses Can Save the Most?

High-Volume Shippers


  • Import/export businesses moving goods weekly or monthly
  • Manufacturers with global supply chains
  • Wholesalers and retailers importing containers of stock
  • E-commerce businesses using international fulfilment centres

Businesses With Claims History or Complex Risk


  • Those with past losses in specific routes or ports
  • Cold-chain and perishable cargo operators
  • Users of high-risk trade routes or storage locations
  • Companies with multiple buyers/sellers sharing responsibility
Quote icon

Insure24 reviewed our routes, packaging and policy structure. We made a few changes and still improved cover – while reducing our overall cargo insurance spend.

Lucy S., Supply Chain Director

FREQUENTLY ASKED QUESTIONS

+-

What factors affect cargo insurance premiums the most?

Key factors include the nature of the goods, packaging, routes, values, volumes, claims history, carrier quality and whether you use annual or one-off policies.

+-

Can I reduce the cost just by switching insurer?

Sometimes, but long-term savings usually come from improving risk quality and buying strategy – not just switching provider. A broker can help you do both.

+-

Will increasing my excess always reduce my premium?

A higher excess often reduces premium, but not always by as much as expected. It’s important to compare options and ensure the excess is still affordable at claim time.

+-

Can Insure24 review my current cargo arrangements?

Yes. We can review your policies, claims, routes and Incoterms, then suggest practical changes to reduce cost and improve cover where possible.

Related Blogs

Cargo Insurance Renewal Checklist: 12 Things to Review

Renewing your cargo insurance policy is more than just a routine administrative task. It's a critical opportunity to reassess your coverage, ensure your business is adequately protected, and potenti…

Best Cargo Insurance Providers UK 2025

By Insure 24

Best Cargo Insurance Providers UK 2025

Cargo insurance is essential for businesses involved in transporting goods, whether domestically or internationally. With the complexities of modern supply chains, choosing the right cargo insurance provider can me…

Suez Canal Delays and Cargo Insurance Coverage

By Insure 24

Suez Canal Delays and Cargo Insurance Coverage

The Suez Canal stands as one of the world's most critical maritime chokepoints, facilitating approximately 12% of global trade and serving as the shortest shipping route between Europe and Asia. When disrup…

Cargo Insurance vs Carrier Liability: Why You Need Both

Introduction

When shipping goods, whether across town or across continents, protecting your cargo is crucial. Many business owners mistakenly believe that their carrier's liability coverage is suf…

Port Delays and Cargo Insurance: What's Covered?

By Insure 24

Port Delays and Cargo Insurance: What's Covered?

15 min read Published: 2025

In today's global supply chain landscape, port delays have become an increasingly common challenge for businesses involved in international trade. These delays…

Cargo Theft Insurance: Protecting Against Transit Crime

In today's interconnected global supply chain, the movement of goods across borders and through various transit points has become increasingly complex. Unfortunately, this complexity has also creat…

Top 10 Cargo Insurance Claims and How to Prevent Them

In the dynamic world of logistics and freight transport, cargo insurance claims represent a significant challenge for businesses. Understanding the most common types of claims and implementin…

Cargo Insurance for China-UK Trade: Risks & Coverage

Introduction

In today's globalised economy, international trade between China and the UK represents a significant portion of business activity. With goods constantly crossing oceans and borders, …

Cargo Insurance Claims Process: Step-by-Step Guide

Cargo insurance claims can be complex and time-consuming, but understanding the process can help you protect your business and ensure smooth handling of claims. This comprehensive guide will walk …

What Is Cargo Insurance? Complete UK Guide 2025

 

Introduction

Cargo insurance is a critical safeguard for businesses that transport goods, whether domestically within the UK or internationally across borders. In 2025, with global supply chains b…