Keeping your business risk information up to date is essential to ensure your insurance cover remains adequate, your premium remains competitive, and your insurer fully understands and accepts your risk.

At DPI, we provide bespoke advice and service when arranging your insurance. If there’s anything you don’t understand or need help with, please don’t hesitate to contact us – we’re here to support you.

Below is a summary of the key areas we typically review at renewal for a Marine Cargo policy and why they are important:

1. Goods Insured

It is important to clearly define the type of goods being shipped. Changes in product types (e.g. adding new commodities or moving to higher-value or perishable goods) may alter the risk profile and must be disclosed. Some goods may require specific conditions, limits, or even exclusions if not agreed in advance.

2. Shipping Routes and Territories

Insurers rate cargo risks based on transit routes, destination countries, and methods of transport (e.g. sea, air, road, or rail). If your trade routes have changed – for example, new exports to high-risk regions or routes through politically unstable areas or transits that don’t start or end in the UK – this should be reviewed to ensure continued cover.

3. Annual Turnover and Sending’s

Most marine cargo policies are rated on your annual sending’s – the total value of goods shipped annually. Accurate estimates help ensure correct premium calculation and adequate coverage limits. Significant increases or decreases in sending’s should be reported to avoid underinsurance or unnecessary premium costs.

4. Limits and Basis of Valuation

Your policy should reflect appropriate per sending or per conveyance limits to cover your highest-value shipments. The valuation basis (e.g., cost + 10%, CIF + 10%) determines how claims are paid – it’s essential this aligns with your commercial contracts and expectations in the event of loss.

5. Incoterms and Responsibilities

Understanding who holds the insurance responsibility under your trading terms (e.g. FOB, CIF, DDP) is critical. Your policy should correspond with your obligations and exposures under international shipping terms. If your trading terms change, your insurance arrangements may need adjusting accordingly.

6. Packaging and Labelling Standards

Insurers may impose conditions around how goods are packaged and labelled. Failure to meet industry or insurer-specified standards can result in claims being reduced or declined, especially for fragile or perishable items.

7. Claims History

Reviewing any claims from the previous years helps identify potential risk management improvements. Frequent or high-value claims may affect terms at renewal, but demonstrating proactive loss prevention measures can support favourable outcomes.

8. Storage and Warehousing

If your goods are temporarily stored at any location (e.g., bonded warehouses or third-party facilities), this may require specific cover under your policy. It’s important to disclose the duration, nature of storage, and security protections in place.

9. Insurance General Acceptance – Adverse Financial History, Health & Safety Breaches and Criminal History

Commercial insurance is subject to an ongoing fair presentation of risk and insurance contracts are subject to certain standard general acceptance criteria. It is the ongoing responsibility of the policyholder to ensure any adverse financial history, health & safety breaches and criminal history are disclosed as these are considered material facts that directly impact the insurer’s ability to accurately assess risk. Non-disclosure or misrepresentation of such information can lead to serious consequences, including the voiding of the policy, rejection of claims and legal action. Full disclosure ensures transparency, allows insurers to offer suitable terms and helps maintain the integrity of the insurance contract.

Please Note:
This guide provides a general overview and is not exhaustive and should not be construed as bespoke advice or a personal recommendation. The requirements of marine cargo policies can vary significantly depending on the nature of your business, goods, and trading activities.