What Is Cargo Insurance and Do I Need It?

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A clear guide to understanding cargo insurance - what it covers, why it matters, and which businesses need it. Protect goods in transit against theft, loss, damage and unexpected events across road, sea, air and rail.

CALL FOR EXPERT ADVICE
GET A QUOTE NOW

We compare quotes from leading insurers

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

UNDERSTANDING CARGO INSURANCE

  • WHAT’S COVERED?

  • WHO NEEDS IT?

  • WHY IT’S ESSENTIAL

  • COVER OPTIONS

A Simple Guide to Cargo Insurance for UK Businesses

Cargo insurance protects your goods while they are being transported. Without it, your business could face significant financial loss if goods are damaged, stolen or lost during transit.

What Does Cargo Insurance Cover?

Comprehensive protection against loss, theft and damage during transit.


  • Damage from impact, breakage or crushing
  • Theft, pilferage and hijacking
  • Accidental loss during transit
  • Weather-related damage (storm, flood, heat)
  • Fire, explosion or smoke damage

  • Damage during loading & unloading
  • Container, pallet or crate damage
  • Misdelivery or non-delivery
  • All-risks international transit cover
  • Storage cover during unavoidable delays

Do I Need Cargo Insurance?

Most businesses that ship or receive goods benefit from cargo insurance.


  • Manufacturers & distributors
  • Importers & exporters
  • Retailers & wholesalers
  • Freight forwarders & logistics firms
  • E-commerce businesses

  • Businesses shipping fragile or high-value goods
  • Companies with international supply chains
  • Businesses transporting temperature-sensitive items
  • Organisations using multiple carriers
  • Any business wanting protection from financial loss

Why Is Cargo Insurance Important?

Most carriers have limited liability, meaning your business may not be fully compensated after a loss.


  • Carriers’ liability rarely covers full cargo value
  • Transit risks are unpredictable and frequent
  • Reduces financial impact of damaged goods
  • Ensures business continuity
  • Often required in international trade contracts

  • Covers theft and pilferage risks
  • Protects goods during handling & loading
  • Greater peace of mind for customers
  • Flexible single-shipment or annual policies
  • Better claims outcomes with specialist insurers

FREQUENTLY ASKED QUESTIONS

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What is cargo insurance?

Cargo insurance protects goods in transit against theft, loss or damage. It applies to road, sea, air and rail shipments and ensures your business is compensated if something goes wrong.

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Is cargo insurance mandatory?

It is not legally required, but highly recommended as carriers usually have limited liability and may not compensate you fully after a loss.

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Does cargo insurance cover international shipments?

Yes - worldwide cover is available across sea, air, road and rail routes.

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Do I need annual or single-shipment cover?

Annual policies are ideal for regular shippers. Single-shipment cover suits businesses with occasional or one-off consignments.

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How much does cargo insurance cost?

Pricing depends on the value of goods, type of cargo, mode of transport, route, packaging and security measures. Insure24 provides competitive options from leading UK insurers.

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