Here’s why you might need CMR insurance

In the world of shipping and logistics, smooth operations and secure deliveries are essential for success.

If you’re a UK courier or haulier, and want to start taking loads to and from the EU and beyond, CMR insurance is key to safeguarding loads during transit, offering peace of mind and financial protection for both you and your customers.

In this guide, we’ll explain what CMR insurance is, its significance for UK couriers and hauliers, how it’s different to Goods in Transit insurance, and how it’s usually priced.

So what is CMR insurance?

CMR insurance, or International Carriage of Goods by Road insurance, is a type of coverage specifically designed to protect goods being transported across international borders by road.

It’s named after the CMR Convention, an international agreement that outlines the rights and responsibilities of parties involved in road transportation.

This insurance is essential to ensure that goods are covered against damage, loss, or theft during their journey, providing financial support when unfortunate incidents occur.

Why UK drivers need it

Thanks to Brexit, couriers and hauliers face new challenges when operating across borders. CMR insurance becomes a crucial tool to navigate these challenges smoothly.

When transporting goods to EU countries and beyond, having proper CMR insurance ensures compliance with international regulations and mitigates potential risks associated with the road transportation process.

CMR vs. Goods in Transit insurance

While both CMR insurance and Goods in Transit insurance focus on protecting goods during transportation, they have distinct differences.

CMR insurance specifically covers international road transportation under the CMR Convention.

On the other hand, Goods in Transit insurance provides coverage for goods transported within a country’s borders, encompassing various modes of transportation such as road, rail, and air.

Therefore, CMR insurance is a subset of Goods in Transit insurance, tailored for international journeys by road.

How premiums are calculated

Several factors contribute to the calculation of CMR insurance premiums:

1. Types of Goods: The nature of the goods being transported influences the risk associated with the journey. Fragile or high-value items might incur higher premiums due to their susceptibility to damage or theft.
2. Distance and Destination: The length of the journey and the destination country affect the insurance cost. Longer distances and countries with different risk profiles can impact the premium.
3. Security Measures: The level of security measures in place, such as tracking systems, alarms, and secure packaging, can impact the insurance cost. Enhanced security measures often lead to reduced premiums.
4. Transportation Equipment: The condition and quality of the vehicles used for transportation play a role in determining the insurance premium. Well-maintained vehicles with proper safety features might lead to lower premiums.
5. Claims History: The claims history of the courier or haulier can influence the premium. A history of frequent claims might lead to higher premiums, while a clean record could result in lower costs.

How to get CMR insurance

For the best-in-class CMR and Goods-in-Transit insurance, look no further than our trusted partners, Business Choice Direct.

They specialise in tailoring coverage to suit your unique needs, ensuring you have the right protection when it matters most.