As one of the UK’s leading independent providers of logistics insurance, it’s a sector of the market extremely well.  Having established our business in Hull and subsequently opened offices in Grimsby and Peterborough, supporting the logistics industry has become a central part of our working lives.   Since the pandemic, our clients have come to rely on us more and more.  Rising insurance premiums, a dramatic increase in the number of claims arising from thefts and climate events, and threats from new risks such as cyber-attacks have meant they’ve needed more support than ever.

To help industry professionals navigate the world of logistics insurance, we’ve put together this guide.  In it, we’ll explain what logistics insurance is and what it covers, why premiums have risen, how you can get cheaper cover, the main types of cover, and the impact that technology and AI are having on the industry.

We hope this guide will prove useful, but if you’d like some more help or a logistics insurance quote, then please get in touch.  You can call us on 04182 434343, request a callback or get a quote, and our experienced team will be happy to help.

What is Logistics Insurance & Why Does It Matter?

Logistics insurance protects firms involved in the transport, storage, and handling of goods from financial losses due to risks like damage, theft, or accidents.  A flexible policy can cover a wide range of perils, including loss or damage of cargo, warehouses, goods in transit, public liability risks, cybersecurity, business interruption, and theft, to name but a few. Supply chain insurance is a flexible policy, and at Coversure, we can tailor protection to your business’s needs.

It matters, not just as it protects a firm’s assets and from some of its liabilities, but because of the turbulent environment in which logistics and supply chain businesses operate in these days.  Thefts from logistics companies are rising significantly in the UK. Organised criminal gangs are increasingly targeting freight with sophisticated methods, leading to millions of pounds in losses, threatening driver safety and the supply chain. The value of goods stolen has risen considerably, with reports from 2024 and early 2025 indicating losses exceeding £100 million, and incidents, particularly at motorway service areas, have seen dramatic increases.

Climate-related incidents such as storms and wildfires have also increased dramatically across Europe, threats that are likely to continue to spiral upwards as climate change continues.  Then there’s the threat from cyber-attacks.  Owing to the connected nature of the industry, the large amount of data they hold, and their reliance on IT systems, logistics and haulage firms are easy targets for cyber criminals.  These attacks can be devastating.  Knights of Old, a 158-year-old firm, was crippled, leading to its closure and the loss of over 700 jobs.  A simple mistake by an employee allowed the Akira ransomware into Knights of Old’s system, locking the business out.  It is thought the hackers demanded £3.7m to hand control back, but when the firm failed to raise the cash in time, they had no choice but to call in the administrators.  Cyber insurance is a policy element that more and more businesses are adding to their insurance arsenal, a phenomenon we’ve explored in our cyber insurance blog.

In short, supply chain businesses need logistics insurance if they are to survive.

Why have logistics insurance costs gone up?

There are two reasons for this: the aftereffects of the pandemic and increased risks.  The pandemic wreaked havoc on supply chains, and this led to a surge in costs. Everything from fuel to spare parts and a lack of availability of new vehicles made everything more expensive. Finding replacement and courtesy vehicles became harder, and as parts were in short supply, the rental periods for these became longer.  Haulage insurance claims alone rose by 25% in 2023, according to Gallagher, and even now, years later, the effects are being felt.

There’s also been a huge rise in the number of risks that need to be considered.  As well as cyber-attacks and thefts, loss at sea or air owing to storms and other weather events, political instability and strikes have made insurers nervous.  Then there’s the sheer size and complexity of the supply chains these days, and with the rise of e-commerce so customers are demanding goods to be delivered more quickly and cheaply.  This need for speed creates tensions, forces compromise and can lead to system failures and claims.

How can you get cheaper logistics insurance?

There are several ways of potentially cutting your supply chain insurance quotes, the most common ones being:

• Use a specialist broker – this is key.  This type of insurance is extremely complex, and you need a broker who knows the risks and who has the right connections to the right providers
• Complete a risk assessment with us and see where you can save money – reducing policy limits and unnecessary policy options can mean cheaper cover
• Renew early – get in touch with your broker a couple of months ahead of renewal to give them time to compare their markets to find you great cover for a great price
• Make sure you have accurate valuations of the goods you’re carrying, or else you could end up paying more
• Set a higher excess, the amount you pay in the event of a claim – this will also reduce the chance of you making small claims that will affect your no-claims discount
• Build up your no-claims bonus
• Improve the security on your vehicles and at your depot
• Invest in safety and security – driver training can reduce costs by up to 15%, in-cab monitoring can reduce the chances of a claim, and telematics systems can reduce the chances of accidents
• Secure premium flexibility – use staged premiums, fixed-rate agreements, and low-interest instalment plans to spread the costs

What does logistics insurance cover?

Insurance for logistics companies through Coversure can be tailored to your needs.  In its most basic form, it will give you cover for your cargo, warehousing, vehicles, and public liability.  Most of our clients take out a mix of covers to fit their needs, and the most common ones are:

• Public liability insurance – covers you against claims for injuries or property damage
• Employers’ liability insurance – a legal requirement, it protects businesses from compensation claims from employees
• Cargo insurance – covers you if the cargo you’re carrying is lost, damaged or stolen. The Road Haulage Association (RHA) has reported that freight crime losses have exceeded £1 billion since 2020
• Cyber insurance – a growing menace for logistics businesses, it can cover the cost of system repair, data recovery, and reputational damage
• Expediting expense cover – covering costs to complete repairs to get the business back in business ASAP, including overtime and express transport costs
• Commercial property insurance – including cover for warehouses, yards, loading bays, and offices
• Directors’ and officers’ insurance (D&O insurance) – covers senior people financially should they be sued owing to their business’s activities
• Business interruption cover – provides you with an income while your logistics business is out of action, providing much-needed peace of mind in a time of stress
• Storage and hazardous goods insurance – protects stored cargo from loss, accidental damage, or theft and can even cover hazardous goods
• Warehouse legal liability – which covers goods during storage stages

How much does logistics insurance cost?

There can be dozens of factors that determine the level of your logistics insurance quotes. The size of your business, which cargoes you’re carrying, how and where will all have a bearing on it.  The main ones are:

• The value of the goods you’re carrying, and whether they are fragile or high-value
• The routes you are working – politically risky spots like the Middle East, Russia, the Straits of Hormuz or around the Horn of Africa, where piracy is prevalent, will all push up costs.  In warzones, you can expect war-risk premium hikes of up to 2% of the shipment’s value
• The distances you are carrying goods over
• Your claims history
• Whether you want to pay monthly or annually, paying annually will usually be cheaper
• Your no-claims bonus
• The turnover of your business
• The type of goods you are carrying – hazardous goods will push up your premiums
• The type of goods you are storing and for how long
• Your business’s postcode
• The level of security at your hub or yard
• If you have any employees, and if so, how many

How is technology transforming logistics insurance?

Technology is revolutionising the industry, and this is having a knock-on effect on logistics insurance.  The Internet of Things (IoT), advanced telematics systems, real-time risk and route mapping using AI, and blockchains being used for dynamic pricing and fraud detection have given insurers a much clearer picture of the risks involved.  These innovations allow insurers to provide personalised quotes at speed.  Increased efficiency and less input from underwriters means lower administration costs.  Customers will also be able to get detailed quotes online and be able to monitor their policies web portals.

These data-driven business models for insurers are allowing for coverage for even complex risks.   Last year, we were approached by a client who needed to ship £1m of Macallan whisky from Aberlour to London by road.  A couple of years ago, such a risk would have been almost impossible to place, but thanks to an AI-aided assessment and real-time telematics tracking including driver data, we wrote the business for an affordable premium.

What this means is a future where logistics insurance quotes will be lower, policies will be tailored to the client’s needs, and quotes will be turned around in minutes rather than days.

Who needs logistics insurance?

Any business that’s involved in the movement or storage of goods can benefit from having logistics insurance.  Whether its activities are national or international, by land, sea, air or a combination of the three, the following types of businesses need supply chain insurance cover:

• Storage and logistics businesses
• Haulage contractors
• Removals businesses
• Multi-centre businesses
• Freight forwarders
• Businesses delivering customers’ goods
• Owner-operator truck drivers

Logistics insurance FAQs

Transport insurance can be one of the most complex sectors of the market.  To help make getting the cover you need easier, here are our logistics insurance frequently asked questions and answers.  We’ve covered the most important issues here, but if you’d like some independent advice, then please call us on 01482 434343 or request a callback.  Our team of specialists will be happy to talk you through the options to ensure you get the protection that’s right for you.

Q. Is logistics insurance a legal requirement?
A. It depends on the nature of your business and the countries you operate in.  It’s not a legal requirement in the UK, but other countries do have specific requirements enforced by law

Q. Which firms need transport insurance?
A.  It’s suitable for all transport firms that are moving large amounts of other people’s goods for money to one or two destinations, such as logistics, removals, certain types of delivery companies and driver-operators

Q. Does logistics insurance insure my vehicles?
A. Yes, and if you have 2 or more vehicles, you include fleet insurance on your policy and can cover everything on one policy

Q. Are goods left in vehicles overnight covered?
A. Yes, so long as it is locked and parked in a secure place.  This is part of the care and custody element of the policy

Q. Why do I need logistics insurance for my business?
A. Because it’s tailored to the industry’s needs and offers a wide range of covers, everything from public liability, warehouse, and cargo cover on a single policy

Q. How does logistics insurance differ from goods in transit insurance?
A. Logistics insurance offers a much greater range of covers.  Goods in transit only covers cargo, whereas a logistics policy can cover commercial property, vehicles, contractual issues, and expediting expenses

Q. What risks does logistics insurance cover?
A. It can be tailored to your business’s needs, but typically it covers vehicles, public liability, cargo, and your business’s buildings, such as warehouses and yard

Q. Does logistics insurance cover international shipments?
A. Yes, though there may be some countries that will be excluded, e.g. North Korea, Sudan, Iran, and Afghanistan

Q. What types of goods can be insured?
A. Almost all types, though there may be exclusions around hazardous goods, explosives or other restricted cargoes.  That said, we can find specialist providers who will even cover these

Q. Can I get short-term or one-off logistics insurance?
A. Yes.  Temporary cover can be provided, or you can get a

Q. Does it cover warehousing?
A. Yes, many policies extend cover to goods in storage as part of the supply chain

Q. Can small businesses get logistics insurance?
A. Yes, policies are available for businesses of all sizes, from SMEs to multinationals, and we can offer cover for all firms

Q. Does my freight forwarder’s policy cover me?
A. It depends.  Their liability insurance is often limited, so it’s best to arrange your own policy to cover the full value of goods

Q. What’s the difference between “all-risk” and “named perils” cover?
A. All-risk covers most unforeseen events except listed exclusions, whereas named perils only cover specific risks, like fire or theft.

Q. How does logistics insurance interact with Incoterms?
A. Incoterms define which party (buyer or seller) is responsible for insurance during shipment.   Your coverage should align with what’s been agreed upon with the Incoterm

Q. How can I get a transport and logistics insurance quote?
A. Getting a quote from us is easy.  You can call us on 01482 434343, request a callback, or get a quote here.  Our team of specialists will be happy to talk you through the options to ensure you get the protection that’s right for you

Conclusion 

Technology is set to make getting the right logistics insurance easy, faster, and cheaper.  Even complex risks on risky routes will become easier to cover, something that will prove a real boon to many firms and their clients.  As with everything, the human touch will still be necessary and consulting an independent logistics insurance broker will be essential.