DP World has introduced a unique war risk insurance solution for cargo owners operating on Middle East routes – a region where traditional insurance instruments have become fragmented, expensive, or entirely unavailable. The new program ensures continuous coverage across the entire supply chain: from sea or air transport to port storage and subsequent inland delivery. This eliminates critical gaps found in standard policies, which typically provide coverage for only a single stage of the transportation process. Thanks to the company’s scale and its partnerships within the global insurance market, the cost of the policy is significantly lower than typical war risk premiums.
HOW IT WORKS: Example shipment from Asia to the Middle East
Cargo travels by sea into Jebel Ali, where it is stored at port for several days before clearance, then transported by truck to its final inland destination.
With traditional insurance: Coverage typically applies only during ocean transit, leaving gaps during port storage and inland transport.
With DP World’s solution: A single policy provides continuous protection across the entire journey, from entry into the war risk zone through to final delivery.
Why this matters:
· Traditional cargo insurance typically excludes war risk or requires separate cover
· Coverage often ends at discharge, leaving gaps during port handling and inland transport
· Carriers do not cover war-related losses, as these fall outside their liability
DP World’s solution closes these gaps with continuous, end-to-end protection.
The insurance covers physical loss of or damage to cargo resulting from acts of war, civil unrest, confiscation, and other related risks; furthermore, all valid claims are compensated without a deductible. The program is available to all companies trading within or through the region and is designed to maintain supply chain continuity along key trade corridors, including the Persian Gulf, the Red Sea, and adjacent overland routes. Various coverage formats are available – ranging from comprehensive “door-to-door” protection to standalone policies for sea, air, or land transport – along with automatic coverage for port storage of up to 14 days, as well as high liability limits: up to $400 million per shipment and up to $1 million per overland movement.
The company explains that traditional insurance policies often exclude war risks or require separate underwriting; moreover, coverage typically terminates the moment cargo is unloaded at the port, leaving the goods unprotected during the storage and inland logistics phases. Furthermore, carriers are not liable for losses caused by acts of war. DP World’s new solution bridges these gaps with a single, unified policy that remains in effect from the moment the cargo enters a high-risk zone until its final delivery. This initiative serves as a continuation of the company’s strategy to develop comprehensive logistics services and expand DP World’s role as a partner across the entire supply chain – even amidst heightened instability.