Could Tariffs and Cargo Theft Send Insurance Costs Through the Roof?
Think cargo theft isn’t your concern? It impacts everyone. With commercial insurance premiums already on the rise, new tariffs could drive these costs even higher. Ultimately, businesses bear the brunt of these increases, and over time, some of those costs may trickle down to consumers through higher prices (hint: they always do).
What’s Happening With Cargo Theft?
Cargo theft isn’t some headline-grabbing crime you only see in movies. It’s real, and it’s expensive—for businesses, insurers, and the entire supply chain. Between 2019 and 2023, Memorial weekend alone saw an average of 29 cargo theft incidents a year in the U.S. Some of those incidents? Massive. Like $4 million worth of pharmaceuticals stolen in Florida or $1 million in electronics swiped in Georgia.
High-risk areas like California and Texas stand out as prime theft zones. California had 43 reported thefts over five years tied to Memorial Day alone. Unfortunately, food and drinks, electronics, and household goods top the thieves’ wishlist. Because why not steal what’s easy to sell?
Tariffs + Cargo Theft = Big Problems
Now throw tariffs into the mix. What happens when certain imported goods are subject to higher fees? Their value skyrockets. Suddenly, a shipment of high-end electronics is worth a lot more—making it basically a giant, rolling “steal me” sign.
For example, a company is preparing for a new tariff deadline by increasing its stock of high-value goods. Warehouses are operating at capacity, shipments are larger than usual, and transport schedules are tightly packed. Unfortunately, these circumstances can make it easier for thieves to exploit vulnerabilities. Whether it’s a security lapse, a targeted scam to redirect deliveries, or a moment of oversight, the result can be another unfortunate insurance claim.
And when claims keep adding up? Insurers either raise premiums to offset their risk or tighten their requirements. Neither option’s great news for businesses.
Insurance Costs Are Already Creeping Up
Here’s the thing. For businesses, getting hit with higher commercial insurance premiums isn’t hypothetical anymore. It’s happening. Insurers are paying attention to rising theft rates, especially in high-risk areas or with certain goods. If theft trends keep increasing, rates won’t just creep up; they’ll soar.
Have you reviewed your policy recently? If not, you might be surprised. Some policies fully cover theft, but others? They don’t, especially if the theft involves negligence or unauthorized carriers. Miss one box on that insurance checklist, and your business might be eating those big-ticket losses.
And what’s the domino effect of hiked-up premiums? Businesses may need to adjust budgets, pass costs along to customers, or restrict how they transport goods.
What If It’s Your Business?
Imagine owning a small food distribution company. You’ve got five trucks on the road, carrying everything from chips to carbonated drinks. A new tariff bumps up the wholesale cost of beverages, and suddenly your typical $50,000 load is worth a lot more. You’ve got insurance, sure. But what if you didn’t log the driver credentials as required or didn’t double-check the transport company’s new contact info? Insurance denies the claim. You’re out the money.
Or suppose you work in logistics, managing shipments of electronics. New tariffs push loads to record value, and suddenly you’re on the radar for organized crime. Even if everything’s locked down, premium hikes start eating into thin profit margins. What then?
Can Businesses Get Ahead of This?
Businesses don’t have to sit around waiting to get hit by rising theft trends or insurance hikes. Experts recommend strengthening security, from GPS tracking to solid warehouse protocols, and vetting every carrier like your profits depend on it (because, well, they do).
Think small changes don’t matter? They do. Companies that consistently log driver and vehicle info or use verified, trusted shippers have fewer thefts. And fewer thefts mean better insurance rates in the long run.
Why You Should Care About the Trickle-Down Effect
If you think cargo theft and rising premiums only impact big corporations, think again. The cost of theft and insurance is redistributed across the entire supply chain. Businesses raise prices to make up for losses, and consumers almost always end up paying more for groceries, gadgets, and household goods.
The Takeaway
New tariffs and rising cargo theft are like throwing gasoline on a fire. And who’s getting burned in the process? Businesses, insurers, and consumers alike. But it doesn’t have to be all doom and gloom. With the right security strategies and insurance policies in place, there are ways to outsmart the bad guys.
Just remember, issues like cargo theft don’t stay in their lane. They ripple through the whole system. And unless businesses play proactive defense against theft and tariff-driven risks, the cost won’t just stay on the balance sheet. It’ll show up wherever it stings the most. Whether that’s in premium payments or on price tags for everyday stuff. Who’s ready for that? Not us.