Wine shipping insurance: protecting your shipment

Getting your wines to your customers on time and in optimum condition is both your priority and ours. But what happens when something goes wrong? Shipping insurance can help cover any losses if your products are lost or damaged on their journey. For businesses shipping internationally, shipping insurance provides reassurance that, should the worst happen, your business won’t suffer financial hardship.

What does shipping insurance cover? 

Shipping insurance policies can also offer different levels of coverage in terms of the shipment value. A policy that covers 100% of the value of the shipment covers the total cost of a replacement shipment to your customer, for example. Typically, the cost of the shipping insurance policy is linked to the value of the wine you’re insuring.

The insurance model offered will vary depending on your insurance provider, but most policies offer compensation in the event of:

• Damage

• Loss

• Theft 

In addition, some policies also cover:

• Debris removal: covers the cost of removing cargo that may have dropped onto the roads or into water bodies.

• Product damage: this is usually in relation to an incident where the bottles are damaged. Heat damage is normally an additional insured risk.

If you take out insurance with us, our insurance policy covers the full value of your products against:

• Physical damage to the goods: including leaks, breaks, damage from road accidents, terminal accidents, etc. 

• Robbery

• War and terrorism risk

• General average costs

• Strikes, riots or civil commotion

• Debris removal

• Cost of disposal or demolition 

• Thermal shocks: when adequately shipped with our insulation liners or in a temperature-controlled reefer container.

• Duties and taxes: subject to additional premium. 

This covers shipping using any transport mode needed to deliver your cargo.

What does a typical shipping insurance policy not cover?

It’s important to note that shipping insurance only covers problems related to the transport itself, and there are some things that shipping insurance won’t cover. For example, if a bottle leaks because it has been damaged by an accident during handling, then you can claim for it on your shipping insurance - depending on the details of the policy. However, if a bottle leaks during transport due to a seal failure, shipping insurance won’t cover it. Common policy exclusions include:

• Losses exceeding the policy limit: shipping insurance won’t cover the value of products loss or damage over the limit of a policy.

• Inherent vice: damage or loss due to a condition inherent in the products before they were shipped. 

• Failure to pay or collect: if the shipper’s failure to pay at any stage of the supply chain leads to the loss or damage of the shipment, it won’t be covered.

• Loss of market or profit: if the import loses the opportunity to sell their product because of damage, any loss of potential profits above the value of the shipment isn't covered.

• Negligence: shipping insurance won’t cover losses or damage if the importer or any other parties in the supply chain have been negligent in the handling of your shipment.

Is it worth getting shipping insurance?

Yes! Shipping insurance offers you broader protection than a carrier’s liability. Freight forwarders and carriers have limited liability under international conventions, which means that they only pay compensation if you can establish that they were at fault for the damage or loss to the shipment. If you can prove fault, the compensation will be based on weight or package count, which may be much less than the actual value of your goods. For wine in particular, shipping insurance is a smart investment. Wine is a sensitive product, and needs to be transported carefully. Shipping insurance will protect your business financially. 

Although loss or damage of shipments is rare, it can happen. As a business, it can be useful to consider the financial risk to your company from loss of revenue if even one of your shipments was damaged or lost. Wine shipments also tend to be high in value, so shipping insurance provides peace of mind as well as financial cover. Here’s an example of a bespoke policy we created for a shipment of rare and fine wines worth €600,000 here.

How much is cargo shipping insurance?

The cost, or premium, for shipping insurance varies depending on your wine's value and transport cost. You can use our shipping insurance tool to get an estimate of your insurance premium. We also offer tailored policies for wine shipments with a high value, such as those containing fine or rare wines. 

When taking out insurance, it’s important to review the terms and conditions. Check how the policy values the goods, as this affects the cost of the insurance and how much you could claim in the event of an accident or other loss. 

Generally, the cost of shipping insurance is minimal, when you look at it as a per bottle price. The following factors can affect the cost of your shipping insurance premium: 

1. Policy limits: if the policy doesn’t cover the entire value of the shipment, it will specify a certain limit. A limit of US$100,000 is common, but others offer higher limits, around US$250,000-$300,000. Higher limits will mean the premium is higher. 

2. Type of cargo: the cargo itself makes a difference to the price too. While less sensitive goods such as plastic items tend to cost less to insure, consumable products like wine often cost a bit more. 

3. Prior losses: if you have made insurance claims for shipping losses in the past, they may be factored into your premium. But not with a Hillebrand Gori policy!

4. Excess: this is an amount you will need to pay before you are able to receive the compensation of your claim. Hillebrand Gori do not apply an excess to their insurance policies.

5. Deductibles: this is an amount sometimes deducted from the compensation amount for the amount of admin required to investigate and manage the claim.

Get a shipping insurance estimate today

Choosing the right shipping insurance policy for your business is a must-have for wine shippers who need protection should an incident occur. Our shipping insurance tool can provide a premium indication in seconds. For bespoke quotes or for shipments with a commercial value over US$100,000, contact us to get your insurance premium. You can also find more useful information about safeguarding your wine in our wine protection articles here.

Published 09th October 2023, updated 22nd December 2023