KMB’s Guide to Insurance

With the recent plight of exporters suffering long delays due to the Ever Given blocking the Suez Canal, many will be wondering how they are covered in terms of insurance. We’ve put together a list of FAQ’s to answer any questions you may have.

Q. What is covered under standard insurance?

Sea freight

Approx. £2.20 per kg under BIFA conditions of carriage

Air freight

Lost or damaged freight – between £18 and £21 per kg, but is dependent on the airline and also whether they adhere to Montreal or Warsaw air freight convention

Road freight

UK – £1.30 per kg based on RHA conditions of carriage

European – Approx. £9 per kg under CMR conditions

Q. What is excluded from CMR insurance?

Typically, the following goods will not be covered by a standard CMR policy:

  • Spirits
  • Tobacco products
  • Explosives
  • Dangerous drugs
  • Living creatures
  • Electronics – computer chips, memory cards
  • Mobile phones
  • Precious metals or bullion

Monetary items – bank notes and coins, currency, cheques, bonds or negotiable instruments or securities

Q. What can I do to minimise freight insurance claims?

  1. Firstly, it is advisable to take a photo of the cargo before loading, and if possible, get the driver to see the cargo before it is loaded.
  2. Although it is the driver’s responsibility to ensure a load is adequately secured on a vehicle, the shipper is advised to check the load before the driver leaves.
  3. Ensure the goods are adequately packaged and labelled and ensure the vehicle and freight service you use is suitable for the nature of the goods you are transporting.

Q. Can I claim for consequential loss if a shipment is delivered late?

In order to claim for consequential loss costs you must be able to prove that the carrier acted with “wilful neglect”.

For more details about insurance or any of our other services, please do not hesitate to call us on 0121 557 3352 or email