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EXPORT INSURANCE THAT PROTECTS YOUR GOODS & YOUR LIABILITY
Why Export, Transit & Overseas Liability Risk Needs Specialist Cover
Exporting introduces a different level of risk. Once your goods leave the UK, your exposures can change dramatically: longer transit times, multiple handling points, customs delays, storage in third-party depots, different legal systems, and higher-value liability claims if your product fails overseas. Many UK engineering and manufacturing businesses discover too late that “standard UK cover” doesn’t automatically protect overseas shipments or overseas claims. Insure24 arranges specialist cover to protect your goods in transit and your liabilities in the markets you trade in.
Export, Transit & Overseas Liability Risk Insurance (UK Engineering & Manufacturing)
This page is for UK engineering and manufacturing businesses that export goods abroad, ship equipment internationally, or supply products that end up in overseas markets. Exporting can increase both property risk (loss or damage to goods during transit) and liability risk (claims brought overseas, higher legal costs, and different contractual standards).
“Export risk” is rarely solved by one policy. In practice, businesses often need a structured blend of: Marine Cargo / Goods in Transit (to cover shipments), Public & Products Liability with correct territory/jurisdiction, and sometimes Contract Works / Installation or Professional Indemnity depending on what you supply and how you deliver it. The goal is simple: protect your cashflow, contracts, and balance sheet when you trade internationally.
Insure24 helps you identify where risk transfers (Incoterms), where claims could arise, and which policy sections should respond. We also help you avoid common pitfalls such as underinsuring shipments, excluding the wrong territories, or relying on a freight forwarder’s limited liability when you actually need “all risks” cargo cover.
- Goods in Transit / Marine Cargo – cover for loss/damage while shipping by road, air, or sea (often “all risks”, subject to terms).
- Overseas Public & Products Liability – correct territory and jurisdiction for where claims may be brought.
- Contract-driven requirements – many overseas customers require specific limits, wording, and evidence of cover.
- Incoterms and risk transfer – understand when you are responsible for the goods and for how long.
- Storage & consolidation points – cover can be extended to storage in transit and third-party depots.
- Installation/commissioning – where you deliver and install overseas, additional covers may be required.
Common Export & Transit Risks for Manufacturers
Export and overseas trading risk typically falls into three buckets: (1) physical loss/damage of the goods, (2) delay and disruption to contracts and delivery timelines, and (3) liability and legal exposure in overseas markets. The list below covers the issues we most commonly see for UK engineering and manufacturing businesses.
Physical Loss & Damage (Transit)
- Handling damage – forklifts, cranes, ports and cross-docking create multiple handling points.
- Sea transit hazards – water ingress, container damage, heavy weather, general rough handling.
- Air cargo risk – drop/shock damage, misrouting, and high-value theft exposures.
- Theft and non-delivery – organised theft can target high-value components and electronics.
- Improper packing – packaging and securing are underwriting hot buttons for heavy or fragile equipment.
- Storage in transit – consolidation warehouses, depots and bonded storage can increase fire/theft exposure.
Delay, Disruption & Contract Pressure
- Customs delays – paperwork issues and inspections can impact deadlines and installation schedules.
- Port congestion – longer dwell times increase storage risk and disrupt delivery windows.
- Supply chain knock-on losses – a late component can halt an entire overseas project.
- Replacement lead times – bespoke machinery may take weeks/months to remake.
- Disputes over risk transfer – Incoterms misunderstandings can create uninsured gaps.
- Contractual remedies – contracts may include performance and timeline expectations that add pressure.
Overseas Liability & Legal Exposure
When your goods are used overseas, liability exposure can become more complex. The most important concepts are territory (where incidents can occur) and jurisdiction (where a claim can be brought). You may be supplying to one country but be sued in another depending on contract terms, distribution chains, and legal realities. Higher legal costs, specialist counsel, and expert evidence can drive claim costs even where you believe you have “done everything right”.
Overseas liability also interacts with contracts: OEM supply agreements, distributor agreements, and project contracts often specify minimum liability limits and require evidence of cover. Insure24 can help structure liability and wording to match the markets you trade in, and highlight where a contract includes onerous terms (for example “fitness for purpose” obligations or broad indemnities).
What Insurance Do Exporting Manufacturers Typically Need?
Exporting manufacturers often require a joined-up approach across transit and liability. Below are the main covers and how they fit together. The “right” structure depends on what you export (components vs finished machinery), how you ship (road/air/sea), who arranges freight, whether you install overseas, and what your contracts require.
Goods in Transit / Marine Cargo (Shipments)
For international shipments, standard courier/freight liability is usually limited and may not reflect the true value of your goods. Marine Cargo (sometimes called cargo insurance) is designed to protect the value of your goods while in transit, including shipments by sea, air, and road, and can be arranged on an annual basis for regular exporters.
- Single shipment or annual open cover – depending on frequency and shipment values.
- All risks vs named perils – cover structure depends on the goods and handling profile.
- Storage in transit – can be included where goods pause in depots/warehouses.
- Packaging requirements – insurers may require suitable packing and securing, especially for heavy equipment.
- High-value theft focus – security requirements may apply for electronics and valuable components.
Overseas Public & Products Liability (Claims Abroad)
If your products are used overseas, you need to ensure your liability policy is set up for it. This is where territory and jurisdiction matter. Many businesses assume overseas sales are covered because “it’s the same product” — but the policy schedule must match where claims can occur and be brought.
- Territory – where incidents can occur (e.g. worldwide excluding certain territories, or specific regions).
- Jurisdiction – where claims can be made (e.g. UK courts only vs worldwide jurisdiction).
- Limits – often driven by contract requirements (£5m/£10m+ are common in engineering supply chains).
- Product type – higher hazard products may require specialist underwriting and wording.
- Defence costs – overseas defence can be expensive; clarity on cost treatment is important.
Additional Covers Often Needed
Depending on your export model, additional covers may be relevant:
- Contract Works / Installation – if you install or commission machinery overseas.
- Professional Indemnity – if you provide design, specification, calculations or advice to overseas clients.
- Business Interruption – protects cashflow if an insured event impacts production and prevents export deliveries.
- Product Recall / Remedial Costs – where defects could require retrieval or modification at scale.
- Cyber – for exporters relying on digital supply chains, design files, and operational systems.
- Directors & Officers / Management Liability – where overseas trading increases governance and regulatory exposure.
- Trade credit insurance – if you extend credit terms and want protection against non-payment (separate product).
- Employers’ liability / overseas travel – where staff travel abroad for installation/service (work abroad considerations).
- Tools and equipment cover – for portable equipment taken overseas for installation/servicing.
- Legal expenses – for contract disputes and certain legal costs (cover varies by policy).
“We were exporting high-value equipment and assumed the forwarder’s liability would be enough. After a loss in transit, we realised the limits were tiny compared to the true value. Having proper cargo cover made the difference.”
Director, UK Engineering ExporterWhat Insurers Need to Quote Export & Overseas Risk
Export underwriting is practical. Insurers want to understand the value of shipments, how goods are packed and handled, where they go, and the contractual/liability exposure created by overseas sales. Providing clear details usually results in faster quoting, fewer exclusions, and better pricing.
Shipment / Cargo Information
- Goods description – product type, fragility, hazard, and typical packaging method.
- Annual shipment values – and maximum single shipment value.
- Transit mode – sea/air/road, containerised vs breakbulk, and routes.
- Packaging & securing – pallets, crates, shock protection, lifting points, and load restraint.
- Storage in transit – time in depots/warehouses and any special storage conditions.
- Claims history – past transit losses, theft incidents, or damage trends.
Overseas Liability Information
- Where you sell – territories and countries (and whether you sell via distributors or direct).
- End-use and sector – higher-risk environments can increase severity.
- Contract terms – required limits, indemnities, warranties and jurisdiction clauses.
- Installation/commissioning – whether you do any work abroad and scope of services.
- Product safety controls – QA, traceability, testing, and documentation standards.
- Claims/notifications – previous overseas allegations or incidents.
If you have a key contract or distribution agreement, share the insurance clause. That is often the fastest way to ensure the policy aligns with what the customer expects. Where contracts include unusual terms (broad indemnities, fitness for purpose, or wide jurisdictions), we’ll highlight the insurance implications.
Export cover is about clarity. Once your shipments and liabilities are correctly described, insurers can price the risk properly and the policy can respond as expected when something goes wrong.
PROTECT YOUR BUSINESS
- Loss or damage to goods during international transit
- Storage in transit and multiple handling points
- Overseas public & products liability exposure
- Contract-driven insurance requirements and documentation
- Installation/commissioning exposures where applicable
- A structured approach aligned to export routes and territories
FREQUENTLY ASKED QUESTIONS
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Do I need cargo insurance if my freight forwarder arranges shipping?
Often, yes. Freight forwarders and carriers typically operate under limited liability regimes and their liability may be far below the true value of your goods.
Cargo (marine) insurance is designed to protect the insured value of the shipment (subject to terms) rather than relying on a carrier’s limited liability.
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What is the difference between Goods in Transit and Marine Cargo?
Goods in Transit often refers to domestic and some international transit by road, while Marine Cargo is commonly used for international cargo including sea and air shipments.
The correct structure depends on your routes, modes of transport and shipment values. Many exporters use an annual open cargo policy for regular shipments.
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What does “territory” and “jurisdiction” mean in overseas liability?
Territory is where an incident can occur (for example where your product is used). Jurisdiction is where a claim can be brought (for example which courts).
If you sell overseas, you should ensure the policy schedule matches the territories you trade in and the potential jurisdictions your contracts create.
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Can I get cover for storage in transit (warehouses and depots)?
Often yes, subject to underwriting. Many cargo policies can be extended to include storage in transit (for example consolidation warehouses, depots, and bonded storage),
which is important because dwell time can increase theft and fire exposure.
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Do I need extra insurance if I install or commission equipment overseas?
Possibly. Installation and commissioning can create additional exposures, including contract works, work away liability, and professional services elements.
If you send staff abroad, you may also need to consider employee travel, tools cover, and contract requirements specific to the project site.
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How do Incoterms affect insurance?
Incoterms define when risk transfers from seller to buyer and who is responsible for insurance and transport at each stage.
Misunderstanding Incoterms can create uninsured gaps. We recommend confirming your Incoterms and aligning cargo cover to the point where your responsibility ends.
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What information do you need to quote export and overseas risk?
Typically: goods description, packing method, annual shipment values and maximum single shipment value, routes and transit modes, storage in transit details,
export territories, your distribution model, contract insurance requirements, and any installation/commissioning scope. Claims history also helps insurers price accurately.
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Can you cover worldwide exports and worldwide jurisdiction?
Often yes, subject to underwriting appetite and product type. Some territories may require specialist placement or have restrictions.
We can structure liability cover to match where you trade and where claims could be brought, and advise on practical contract wording considerations.