Optimising transport insurance: minimising risks, controlling costs and maximising cover
12.06.25
8
Minutes
Katrin Straub
Managing Director at nextsure
Every transport carries the risk of damage or loss, which can quickly amount to six-figure sums. A tailored transport insurance policy protects your business from these financial consequences. Find out how to ensure the optimum cover for your goods.
The topic in brief and concise terms
The statutory liability of freight forwarders is often very limited (e.g. to 8.33 SDR/kg), and your own transport insurance closes this coverage gap for the full value of the goods.
The cost of transport insurance depends on many factors (type of goods, transport route, turnover, excess) and can be around €500 per year for goods valued at €100,000.
Recent court rulings (e.g. the Federal Court of Justice on ADSp 2017) influence liability limits and underline the need to regularly adjust insurance policies.
Understanding transport insurance: the key facts for quick decisions
Cargo insurance covers damage to and loss of goods during transport. Carriers' statutory liability is often limited to amounts such as 8.33 special drawing rights (SDR) per kilogram. A separate policy closes this gap for the full value of the goods. It applies across many modes of transport, from lorries to ships. The need arises because, according to statistics, around eighty-five per cent of all losses require separate cover.
Practical guide to transport insurance: analysing costs, cover and real claims cases
Calculating transport insurance costs
Premiums for transport insurance vary widely and start at around fifty euros per month. Factors such as the type of goods, route (domestic/international), turnover and excess significantly influence the cost. An example calculation: for the transport of plants worth 100,000 euros within the EU with an excess of 250 euros, the annual premium can be around 500 euros. The insured sum should always cover the value of the goods plus transport costs and a small risk margin.
Know typical cover and limits of liability
Goods-in-transit insurance often offers all-risk cover. This typically includes damage caused by accidents involving the means of transport, theft, fire, explosion or natural events. Costs for transshipment, interim storage and loss mitigation are also often covered. Note liability limits: freight forwarders under the ADSp are often liable for only around ten euros per kilogram. A carrier's insurance can provide additional cover here.
Understand damage scenarios and their financial impact
A common loss scenario is the theft of high-value electronics worth over 200,000 euros. Without additional insurance, the freight forwarder's liability would perhaps cover only 50,000 euros here. Another example is damage to a machinery shipment caused by an accident, resulting in repair costs of 30,000 euros. Transport insurance covers these costs up to the agreed sum insured. Many companies underestimate the risk of transport damage, which can amount to over one billion euros annually. Choosing the right car & mobility insurance is therefore crucial.
To illustrate the complexity of liability rules and the need for adequate cover, we will now look more closely at the legal framework.
Expert knowledge of transport insurance: mastering legal fundamentals and current case law
Navigating statutory obligations and liability provisions (HGB, ADSp)
The legal foundations of transport insurance are found in the German Commercial Code (HGB) and the Insurance Contract Act (VVG). For carriers with vehicles over three and a half tonnes, insurance is mandatory under Section 7a of the Road Haulage Act (GüKG). The General German Forwarders' Terms and Conditions (ADSp) are often part of the contract and regulate liability issues, but frequently limit them. Knowledge of these sets of rules is essential for drafting contracts in order to avoid gaps in cover. A motor vehicle liability insurance does not cover these specific transport risks.
Current court rulings and their implications for your policy
A ruling by the Federal Court of Justice on 27 October 2022 (case ref. I ZR 139/21) clarified liability under ADSp 2017 for multimodal transports with an unknown place of damage. Liability was limited here to two SDR per kilogram instead of the usual 8.33 SDR. The Brandenburg Higher Regional Court (case ref. 7 U 173/18) awarded a claimant compensation of 15,000 euros for the loss of two instruments, as there were organisational shortcomings on the part of the carrier. Such rulings influence risk assessment and premium calculation.
Drafting tips for watertight contracts and optimal clauses
Pay attention to a clear definition of the scope of insurance and the exclusions. The sum insured must cover the full value of the goods, including ancillary costs, in order to avoid underinsurance. Our expert tip: agree a „subsidiary cover“ if the freight forwarder is only liable to a limited extent. Have clauses on special duties of care, such as secure parking for high-value goods, reviewed. A vehicle return transport insurance can be useful for international transport.
These legal details show how important careful review and adjustment of your transport insurance is in order to be optimally protected in the event of a claim.
Risk minimisation through proactive measures and the right insurance choice
Effective risk minimisation begins long before transport. This includes the careful selection of packaging materials that absorb at least ten per cent of impact energy. Train your employees regularly in handling sensitive goods; this can reduce the damage rate by up to fifteen per cent. Use modern telematics systems to monitor your transports in real time. Many companies achieve a reduction in insurance costs of up to twenty per cent through proactive risk management.
Choosing the right insurance partner and the appropriate policy is the next step. Here are a few points to consider:
Check the scope of cover: National or worldwide cover, as is often required with electric car insurance.
Analyse the insured risks: all-risks cover or only specific risks.
Clarify the excess amount: A higher excess lowers the premium, but increases your risk in an individual claim.
Watch out for exclusions: Damage caused by inadequate packaging is often not covered.
Consider additional services: Costs for loss mitigation measures or salvage.
A thorough analysis of your individual risk situation is crucial in order to find the right cover and not just pay premiums, but receive real value.
Claims management: Ensuring efficient processing in the event of a claim
If a loss occurs, swift and correct action is crucial for prompt settlement. Report the claim to your insurer immediately, ideally within 24 hours. Document the loss comprehensively with photos, detailed descriptions and witness statements. Keep damaged goods until they have been inspected by an expert. A complete and prompt claim notification can reduce the processing time by up to fifty per cent.
The following steps are common in the claims process:
Immediate claim notification to the insurer with all relevant details (What, When, Where, How, Who).
Securing the loss site and the damaged goods to prevent consequential damage.
Detailed documentation of the damage (photos, videos, written reports).
Submission of all required documents (bill of lading, commercial invoice, delivery note, police report if applicable).
Cooperation with the average adjuster or expert appointed by the insurer.
Review of the claim and cover by the insurer.
Payment of compensation after completion of the review, often within 14 days of full documentation.
A well-prepared claims process and knowledge of your obligations as the policyholder are invaluable and safeguard your claims, just as with a motorcycle insurance.
nextsure: Your partner for tailored transport insurance solutions
As a digital insurance portal, our mission at nextsure is to offer you comprehensive and easy-to-understand insurance solutions. We understand the complexity of transport insurance and the need for tailored cover concepts. With our focus on niche products and full digitalisation, we offer you expert advice. Our experts analyse your specific risks and develop tailored proposals that go beyond standard cover. We support you in managing your transport risks effectively and obtaining help quickly and easily in the event of a claim. Trust our expertise for your optimum protection.
Request an individual risk analysis now: Have your insurance situation reviewed free of charge and receive concrete suggestions for improvement.
More useful links
Wikipedia offers a comprehensive overview of transport insurance in Germany.
The Federal Statistical Office (Destatis) provides comprehensive data and statistics on freight transport in Germany.
The Federal Statistical Office (Destatis) offers detailed tables on freight transport, providing important insights into the transport sector.
The European Commission provides information on the EU's priorities and strategies in the area of customs risk management.
The German Bar Association offers specialised information and resources on this area of law through its Transport and Freight Forwarding Law Working Group.
PwC provides information on supply chain optimisation and resilience, which are of great importance to companies.
The BME (German Association for Materials Management, Purchasing and Logistics) uses its Logistics Study 2024 (PDF) to offer in-depth insights into current trends and challenges in the logistics industry.
The Fraunhofer Institute for Material Flow and Logistics IML is a leading research institution in the field of logistics and material flow and offers innovative solutions for the transport industry.
The German Insurance Association (GDV) provides comprehensive information on transport and logistics from the perspective of the insurance industry.
FAQ
What role do the ADSp play in transport insurance?
The General German Forwarders' Conditions (ADSp) are pre-formulated contractual terms that are frequently used by freight forwarders. They regulate, among other things, the liability of the freight forwarder, which is often limited (e.g. to 8.33 SDR per kilogram). Separate transport insurance is important in order to be insured beyond these limited liability amounts up to the full value of the goods.
What are Special Drawing Rights (SDRs) in transport insurance?
Special Drawing Rights (SDRs) are an artificial currency unit of the International Monetary Fund (IMF). In transport law, in particular in international agreements such as the CMR and also in the ADSp, liability limits are often stated in SDR per kilogram of the damaged or lost goods. The value of an SDR is recalculated daily.
What does all-risk cover mean in transport insurance?
Comprehensive all-risk cover (all-risk cover) in transport insurance offers the most extensive protection. It generally covers all risks to which the insured goods are exposed during transport, provided these are not explicitly excluded in the insurance contract. Typical exclusions can include damage caused by war, strike (sometimes insurable as an optional extra), inherent vice or normal wear and tear.
What should I do in the event of a claim under transport insurance?
In the event of a claim, you should inform your insurer without delay. Document the damage as thoroughly as possible (photos, witnesses, claims report). Take steps to minimise the damage, if possible and reasonable. Keep the damaged goods and packaging for any potential inspection and submit all relevant documents (consignment note, invoice, etc.).
Does the transport insurance also cover damage during interim storage?
Yes, many transport insurance policies also cover damage that occurs during interim storage related to transport. The exact scope and duration of insured interim storage are defined in the policy. It is important to check this in the contract, especially if longer storage periods are part of your logistics chain.
Can private individuals also take out transport insurance?
Yes, private individuals can also take out transport insurance, for example for a move, the shipping of valuable items or the transport of sports equipment. This is particularly sensible if the value of the goods exceeds the transport company’s liability or if more comprehensive cover is desired.
