7 Key Factors Affecting the Cost of Cargo Transport Insurance

Cargo transport insurance is an essential tool for protecting goods during their transfer, whether by land, sea, or air. However, not all policies have the same cost, as various factors influence the insurance premium.

At Assek Europe, we design solutions adapted to the needs of each client, considering the key aspects that determine the price of the coverage. Below, we explain the main factors that can affect the cost of your cargo transport insurance policy.

Type of Goods:

Not all goods present the same level of risk. High-value, fragile, or perishable goods usually require higher premiums due to their vulnerability. Some examples include:

• Electronic products: susceptible to theft and damage from impact.
• Perishables: require temperature-controlled transport and can deteriorate quickly.
• Dangerous goods: have stricter regulations.
• Bulk cargo: risk of shrinkage and spills.
• Machinery: complexity of internal mechanisms susceptible to damage. High-value goods with high tax burdens.

Means of Transport:

The selected method of transport also influences the insurance rate. Each modality has specific risks:

Maritime transport: may involve risks of general average, sinking, or moisture damage. Land transport: faces risks of theft, accidents, or damage due to improper stowage. Air transport: cargo handling is more complex, which influences the risk. Multimodal transport: the number of times the goods are loaded and unloaded affects the rate.

Distance and Route of the Journey:

Premiums vary depending on the origin, destination, and route of transport. Factors such as distance, road conditions, or navigation conditions depending on the time of year can increase the risk and, therefore, the cost of the insurance.

Intermediate Storage:

If the goods need to remain stored in transit, the time and conditions of storage can influence the cost of the insurance. At Assek Europe, our policies include coverage for intermediate storage for up to 60 days, providing greater security in the event of logistical delays.

Claim History of the Insured:

Companies with a good transport history and a low claim index can obtain better conditions and prices on their policies. A high number of prior claims can raise insurance rates, as it represents a greater risk for the insurer.

Policy Conditions and Coverage:

The type of coverage contracted directly influences the cost of the insurance. Some of the most common options include:

All-risk coverage: protects against every risk of transport that is not expressly excluded in the policy. Specific risk coverage: each commodity may require specific conditions, for example, deferment in the opening of packaging for coiled goods.

The Role of the Policyholder and Insured:

A vital aspect in determining the rate is the profile of the Policyholder and Insured:

Whether they are a carrier, freight forwarder, or owner of the goods. Whether they are the buyer, seller, importer, or exporter, as this is influenced by the INCOTERM of the sale and purchase operation.

Understanding the factors that influence the cost of cargo transport insurance is thus key to optimizing the protection of shipments without incurring unnecessary expenses. At Assek Europe, we offer flexible and specialized solutions, ensuring agility in underwriting and personalized service for every client.

📩 If you want to learn more about how to optimize the cost of your cargo transport insurance without compromising its coverage, contact our team of specialists.