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As Markel’s product line leader for inland marine, I’ve been especially alert to the almost daily changes in the tariff climate. The reason is, I’m aware just how pervasive tariffs’ risks are for virtually every aspect of international trade.
Ongoing negotiations, shifting policies, reciprocal tariffs and unpredictable responses from global partners have created a climate of uncertainty that can impact everything from pricing to supply chain stability.
Just one indicator of the potential economic impact: new data shows that in January 2025, U.S. imports reached a record high, as people raced to stock up on goods prior to tariffs’ expected onset.1
Where does inland marine insurance come in?
For appointed brokers selling inland marine insurance, this reality presents both a challenge and an opportunity. Inland marine policies are deeply connected to global commerce—covering not just goods in transit, but also storage facilities, job site materials, equipment and more. When tariff conditions shift, risk exposure does too. That’s why today’s environment calls for more than a standard policy; it requires a strategic, service-driven approach.
Tariffs can materially affect many areas of potential risk
All of these facets of trade are potentially affected by tariffs. So against this backdrop, how do we begin assessing inland marine risks for a given insured?
Impact on cargo value: The picture starts with the potential for unpredicted, tariff-related changes in the value of cargo—and its ultimate replacement cost in the event of loss or damage. Tariffs could affect the values of many types of shipped goods, ranging from materials such as wood or steel to finished goods such as appliances or cars. Just one example: analysts estimate tariffs on imported autos could raise the price of an average new car by $5,000 to $10,000.2
Brokers must be prepared to help insureds reevaluate replacement value and appropriate coverage.
Effects on storage and distribution: Tariffs also have the potential to bring about changes in the way goods are stored and distributed, a key factor in trade. For example, businesses may find that their storage facilities are fuller than usual, either because trade has been slowed by tariffs or because they may find it advantageous to stock up on certain commodities or finished goods at a given time.
Brokers and insureds should take stock: Are facilities still properly protected based on current usage? Has heavier-than-usual inventory affected sprinkler systems, access routes or equipment loads? Should businesses be spreading their storage over multiple facilities? Should construction contractors be pre-sourcing spare parts for maintenance?
Reciprocal tariffs and vendor relationships: Global trade dynamics are rarely one-sided. When one country imposes tariffs, it often invites a reciprocal response. This domino effect can cause ripples across industries, making it harder for businesses to forecast costs, plan inventory or manage vendor relationships. Brokers should encourage insureds to take a wide-angle view of their international relationships and consider how tariff actions in one region could impact goods or components sourced from another.
Broader supply chain vulnerabilities: Tariffs often expose gaps or weaknesses in third-party vendor networks. Brokers should advise insureds to revisit their supply chain maps. Who are the critical suppliers? Are alternative sources available in case of a sudden tariff increase or geopolitical shift? Encouraging insureds to diversify vendors and broaden their sourcing strategies can help minimize exposure and bolster resilience.
Reciprocal tariffs have a domino effect that can cause ripples across industries, making it harder for businesses to forecast costs, plan inventory or manage vendor relationships.
Carriers’ service capabilities can play a critical role
With the tariff picture quickly evolving, it’s critical that carriers provide personalized, in-house attention and service. Key factors include:
Risk engineering and loss control: Knowledgeable risk engineers can offer strategies to mitigate a multitude of risk-related factors related to tariffs.
In-house vs. outsourced key functions: Are key functions related to underwriting and risk management handled in house, such as policy issuing, endorsements and communications, instead of being outsourced? Such in-house integration of key functions can help facilitate constant communications with brokers and clients and enable quicker policy adjustments in the event that clients’ needs change.
Integration of risk engineering and underwriting: It’s also important that risk engineering and loss control are well integrated with carriers’ underwriting functions, so that policies can be adjusted based on both changes in tariffs’ costs and the advent of new risk mitigation strategies.
With the tariff picture quickly evolving, it’s critical that carriers provide personalized, in-house attention and service.
What’s the role of insurance? A consultative approach matters
The benefits of insurance are strengthened when carriers and brokers work together proactively with insureds—taking advantage of carrier capabilities and staying in close touch as conditions evolve.
Best practices for brokers include:
- Encourage insureds to identify critical third-party suppliers and assess their risk exposure.
- Support insureds in diversifying vendor relationships to minimize dependency.
- Regularly review insured's storage practices and property usage to ensure facilities match current risk assumptions.
- Communicate early and often with underwriters as business operations shift.
Start getting a grip on tariffs’ challenges
Uncertainties around tariffs have the potential to cause turmoil for many companies involved in trade and transport. But understanding the many aspects of tariffs’ risks can also be the first step in surmounting their challenges.
To help ensure that your company comes through any upcoming trade wars unscathed, it’s smart to engage with your inland marine insurance carrier’s service functions, take a look at the areas of your business that may be affected and adjust your inland marine strategies accordingly.
1"U.S. imports surged to record heights as consumers stocked up ahead of tariffs,” Dian Zhang, USA Today, April 1, 2025.
2"Trump’s tariffs could push up costs even if you’re not buying a new car,” John Towfighi and Matthew Kaufman, CNN, March 28, 2025.