What are the most common import/export insurance policies?

1 Marine Cargo Insurance

Marine cargo insurance covers the physical loss or damage of goods during transit by sea, air, road, or rail. It can also include coverage for storage, loading, and unloading. You can choose between different levels of coverage, such as all risks which covers any loss or damage from external causes, unless specifically excluded; named perils which covers only the loss or damage from specific causes, such as fire, collision, theft, or piracy; and institute cargo clauses which are standard clauses that define the scope of coverage for different types of cargo, such as general merchandise, frozen food, or bulk commodities.

2 Liability Insurance

Liability insurance covers the legal liability of the importer or exporter for causing injury, death, or property damage to third parties, as well as the costs of defending or settling claims. This type of insurance can be divided into product liability, which covers the liability for defective or harmful products that cause injury or damage to consumers or users; public liability, which covers the liability for accidental injury or damage to third parties or their property; and professional liability, which covers the liability for errors, omissions, or negligence in providing professional services or advice.

3 Credit Insurance

Credit insurance covers the risk of non-payment or default by buyers or suppliers, as well as the risk of political events, such as war, civil unrest, or currency restrictions. This can be beneficial for importers and exporters in several ways. For example, it can enable them to secure financing from banks or other lenders by using their insured receivables as collateral. Additionally, credit insurance can help them expand their sales to new markets or customers by reducing their exposure to bad debts and manage their cash flow and working capital by ensuring timely payment of their invoices.

4 Cargo Theft Insurance

Cargo theft insurance covers the loss of goods due to theft, robbery, or fraud during transit or storage and can also help cover costs of recovery, investigation, or legal action. This type of insurance is especially useful for importers and exporters dealing with high-value goods such as electronics, jewelry, or pharmaceuticals; vulnerable goods such as food, beverages, or cigarettes; and targeted goods like branded products, rare items, or contraband.

5 Cargo War Insurance

Cargo war insurance can be an essential safeguard for importers and exporters who operate in high-risk areas, such as conflict zones or piracy hotspots, sensitive sectors like oil and gas or mining, or regulated markets with sanctions, embargoes, or export controls. This type of insurance covers the loss or damage of goods due to war, terrorism, or other violent acts during transit or storage. It can also provide protection for the costs of salvage, rescue, or extra expenses.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?