Cargo Insurance

The complete cargo insurance solution

Every business that makes or trades physical products needs some form of cargo insurance, yet all too often importers and exporters tell their brokers that they’ve already got it covered.

When their storage and distribution needs are catered for by commercial combined policies, many businesses simply relinquish control of the insurance of imports and exports, leaving it to suppliers or freight forwarders. Our specialist underwriters help brokers to explain the pitfalls of this approach, securing better insurance cover for their clients business while also helping them to save money.

What is cargo insurance?

Cargo insurance, sometimes referred to as marine insurance, typically covers risks of physical loss of or damage to goods during transit, imports, exports and domestic carriage, including any incidental storage.
Storage outside the ordinary course of transit can be added as an extension to a cargo insurance policy.

Who needs cargo insurance?

Cargo insurance may be required by any business that manufactures or buys or sells finished products, components or raw materials.

Are there any geographical restrictions?

Cargo insurance is generally available to or from ports or places worldwide; however

  • terms and conditions may vary for countries where there are higher than normal risks of war or terrorism;
  • cover may not be available where trade is subject to international sanctions;
  • cover may not be available for the inland leg to or from the port in countries where the infrastructure is poor or where there is an unacceptable theft risk;
  • some countries require insurance to be placed locally or restrict the terms of sale or purchase (Incoterm) that can be used.

Typical policy features and benefits

As appropriate to the nature of the goods being shipped, the NMU policy wording can supplement the core cover provided by the Institute Clauses by covering additional costs and expenses, and can complement it further by protecting the policyholder’s interest in a variety of ways; a number of optional extensions are also available.

As well as the direct benefits of having a Cargo Insurance policy, a range of extensions allows cargo policyholders to tailor their own cargo policy to also cover:

  • domestic sales and purchases
  • non-sales movements between their own premises, at home or abroad
  • storage after arrival, before final delivery, at home or abroad

Further benefits are achieved by packaging the import, export, storage, and distribution risks into one ‘stock throughput’ policy.

Added value

The Complete Cargo Solution from NMU, also gives policyholders access to:

NMU Certs

Where exporters need certificates of insurance to comply with Incoterms requirements, particularly where ‘Letters of Credit’ are involved, our online NMU Certs system gives them the ability to produce electronic certificates in-house…Read more

Fast Track Claims

We recognise the importance of enabling our policyholders to resume their operations and manage day-to-day business as quickly as possible after a loss. To speed up the claims process, Fast Track allows small losses to be submitted via a simple web form.

Losses submitted via NMU Fast Track Claims:

  • don’t normally require formal supportive documentation,
  • are handled by a dedicated in-house team of experts to process settlement, and
  • paid directly via BACS within 72 working hours, if the criteria are met

NMU Cargo policyholders can submit claims of GBP2,500 or less (before application of any deductible) via Fast Track Claims.

Supply chain analysis

Our collaboration with BSI Supply Chain Services and Solutions enables brokers to further support NMU policyholders and, through leveraging the consultative partnership, to better understand clients’ supply chain risks to address potential areas of vulnerability…Read more

What should cargo owners look out for?

Problems sometimes arise where buyers or sellers don’t arrange their own insurance, relying instead on:

  • their suppliers or customers arranging cargo insurance, or
  • a freight forwarder arranging insurance for them.

Discover more here.

How do I submit an enquiry?

Insurance brokers can contact their local NMU Trading Underwriter or submit an enquiry via the Acturis platform.

Contact us

For more information about Cargo Insurance, contact your local NMU Development Underwriter.

Related Downloads

Enquiry Aide Memoire
Institute Cargo Clause Comparison
Incoterms Rules 2020
NMU Certs - User Guide


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