Cargo Insurance and Risk Management

Global trade and the movement of goods is more important than ever and as cultures become more diverse, there is a desire for a range of products from overseas. Cargo being transported from one location to another can be exposed to a range of risks.

From contamination of stock, increasingly erratic weather patterns, cargo theft to misappropriation. Geopolitical sensitivities, domestic conflicts and terrorism have also created a number of flashpoints along major trade routes. This could result in business interruption for cargo companies, or damage to goods themselves.

Like many other sectors, the shipping industry is going digital. New ships are bristling with technology, while port and cargo operations are becoming increasingly digitalised and automated. Vulnerabilities in operating technology are exposing companies to a range of cyber threats including; physical damage, business interruption and the potential theft of cargo. JLT can help companies manage these risks.

Our cargo team are leaders in the London and international market, providing specialist programme design and transactional services to a broad spectrum of industries around the world by combining in-depth sector expertise with innovative claims solutions.

What We Do

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Our cargo team has been helping clients to understand and manage their risk exposures for over 20 years. We represent you and your interests through a process of engagement with all the world’s cargo insurance markets.

Our face-to-face approach means your business is articulated in a way that enables us to achieve good results; securing a competitive price, product and terms for the cover you need.

We work closely with banks, financial institutions, energy and commodity traders, heavy equipment manufacturers, insurers, mining, offshore, oil, life science, project financers, contractors and principals, manufacturing, technology and warehousing operations.

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We believe that the longevity of relationships between markets, brokers and clients is of the ultimate benefit to our clients. We have a strong track record in achieving good deals in terms of price, coverage and claims resolution.

Our areas of speciality include

  • Worldwide cargo programs
  • Interned based global servicing platforms
  • Stock throughput policies
  • Binding authorities
  • Bespoke commodity policies
  • Program facilities
  • Project cargo and marine delay in start up


To determine coverage, check your insurance contract to see if it contains an automatic acquisition clause. This will provide cover at locations not advised at the inception of the insurance contract, or at newly acquired or utilised locations.

The extra expense clause that may be contained in your insurance contract provides coverage for such expenses when the non-delivery occurs due to circumstances beyond your control.

It is possible to get extra expense cover which will respond should the above event occur. This will allow you the commercial flexibility to discharge your cargo and store it and/or forward it to the intended or an alternative destination as may be required.

The cargo should try to be salvaged. All proceeds received for the goods will be deducted from the gross claim amount reducing the insured’s loss. Insurers can help arrange the salvage sale by appointing an independent company to assist the insured with obtaining buyers.

Piracy can lead to multiple issues including ransom demands, damaged ships and declaration of general average. There could be coverage under your marine transit policy for some or all of these scenarios so you should seek guidance and instruction from your insurance broker.

Key Stats



We pride ourselves on offering expert support and a highly responsive service. Here's what makes us different:

  • Our specialist team has wide-ranging experience and technical knowledge. We work to understand your business and requirements, enabling us to deliver the best solutions for your needs

  • Our team is structured to deliver a responsive and personal service. We understand the time pressure that our partners are often under, so we aim to respond to all enquiries within 24 hours

  • We have dedicated claims specialists who sit alongside our team of brokers. Being part of the team means they know and understand clients from the outset, which can prove invaluable in the case of a claim

  • Something that sets us apart from our competitors is our extensive in-house modelling and analytics capabilities. We can help you make informed decisions about your insurance purchasing

  • Our brokers have strong relationships with key cargo underwriters. We know them personally and have worked with them for many years, building up trusting, cooperative relationships, which we use to your benefit

  • We are skilled in arranging complex insurance cover, our cargo team guarantees to offer a fresh global perspective on programme design and broking requirements.


We have specialist knowledge of programme design and transactional services. We offer expertise in the following insurance product lines:

Our commodities team provide market leading insurance solutions for all physically traded commodities worldwide.

Our core product aims to provide cover for:

  • ‘All risks’/war (including piracy), strikes riots and civil commotions with the inclusion of cover for mysterious disappearance and stocktaking losses
  • Transit and/or storage wherever exposed worldwide with broad form attachment and termination of risk features
  • Vessel classification and age requirements tailored to our clients individual vessel use profiles and chartering practices
  • Extra expenses beyond pure cargo loss or damage including vessel arrest or detention expenses, blocking and trapping, embargo, prohibition, rejection, delay risk, debris removal and/or cargo disposal expenses
  • Loss through acceptance of fraudulent shipping documents or warehouse receipts.

Coverage enhancements specific to our core commodity focus groups include:

  • ‘Guaranteed outturn’ leakage and/ or shortage cover and contamination loss howsoever arising with tailored deductibles
  • Cover for floating storage and bunkering operations
  • Covering shortage from containers (mysterious disappearance)
  • Re-bundling/repackaging expenses
  • Consignment/collaterally managed stock cover
  • Hi-jacking of conveyance
  • Rust, oxidisation and discolouration cover howsoever arising
  • Inherent vice extensions including heating, sweating and spontaneous combustion
  • Reimbursement of export subsidiaries
  • ‘Country’ damage
  • Owned/operated warehouse liability coverage
  • Trade disruption insurance.

We know that comprehensive understanding of our clients’ structure, operations and business principles are fundamental to the delivery of superior insurance/risk transfer products and services.

Aligning the right expertise and experience with the project owner and contractor is of paramount importance to the process. We have a dedicated project cargo placing and claims team with renowned market presence.

  • We have a proven track record in successfully handling large and complex projects, including; power, petrochemical (onshore and offshore), water treatment plants, refineries, above ground mines, heavy industrial facilities, wind farms, renewable energy plants, off shore platforms and heavy rig transportation
  • We can work with project owners, contractors and heavy lift freight forwarders
  • We put great emphasis on working closely with underwriters, the project contractor and the appointed marine warranty surveyor
  • We prepare and distribute bespoke survey/coordination procedures to assist in the understanding of, and compliance with, the survey warranty provision and other paramount contractual conditions/exclusions
  • Our contract form offers seamless project cargo and marine delay in start-up (DSU) insurance, including where required, contingent, difference in conditions (DIC) and difference in limits (DIL) provisions, including the following additional features. This needs to identify this is a list.
    • Non-cancellable contract, other than in respect of war and strikes risks
    • Broad form duration of cover clause specifically designed to avoid potential termination of cover during any particular voyage
    • Extra expense provisions available following loss or damage for debris removal, forwarding charges, replacement by air, overtime work, night work, work on public holidays and professional fees (independent architects, surveyors, consulting engineers etc).
    • Control of damaged goods clause ensures that the client remains in full control of said goods and shall be the sole judge as to whether they are fit for sale as salvage or otherwise for destruction
    • Deductible clause ensures that the physical damage deductible is not applicable in the event of a major insured peril (e.g. vessel sinking, stranding or collision)
  • We can provide real time support for our clients’ operations as needed
  • We offer global servicing including co-ordination of local policy implementation
  • We provide on-demand electronic insurance document production, data control and risk management solutions
  • We offer bespoke pre-loss claims handling strategies and procedures.

The concept of a stock throughput policy (STP) is to shift coverage for inventory from the insured’s property policy into a marine cargo policy.


  • Coverage for stock is insured on a broad “all risk” basis and can include such coverages as contamination, infestation, change in temperature etc., which may not be covered under the property policy
  • The cost to insure stock on an STP is often much lower than leaving it in the property programme
  • All stock can be valued at selling price whereas under most property programmes, stock not manufactured by the insured is valued at replacement
  • Deductibles can be reduced on stock, in particular with respect to nat cat perils
  • Coverage can be written with a per location limit and, in many cases, the limit with respect to nat cat perils is not subject to an annual aggregate
  • Loss or damage to stock under a STP resulting from nat cat perils will not erode the annual aggregate limits under the property programme
  • A STP eliminates the need to purchase a separate, standalone cargo policy.
  • Binding authorities
  • Coinsurance
  • Excess stock policies
  • Internet-based global risk management
  • Program facilities
  • Trade disruption
  • War risks and terrorism
  • Worldwide cargo programmes

Claims Certainty

Claims service is the ultimate test. You need claims support that allows your business to continue uninterrupted in the event of a loss. Our claims service includes:

  • Stress testing and adapting products to tailor truly bespoke solutions that accurately reflect your risk exposure
  • A dedicated team that offers a comprehensive review of your policy wording
  • Using our extensive database we benchmark the performance of individual insurers, allowing you to make informed decisions about the markets with which you trade
  • Most importantly, in the event of a loss you really need the most from your broker. With 24/7 access, our priority is to deliver full settlement as quickly as possible. From submission to payment, our average lead market settlement period is ten days.
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