An ultrasound machine, an electronic microscope, a laboratory automation system or an operating room control unit are commonly worth several tens of thousands of euros, sometimes more, for a moderate weight. In the event of loss or damage during transport, the carrier's liability only reimburses compensation calculated by weight, without any relation to this value. For a manufacturer, distributor or importer of medical equipment, the gap between the legal compensation and the actual value of the good is the primary source of financial exposure.
This guide addresses a specific need: ensuring the value of medical and laboratory equipment during transit. It does not cover transportation itself, insurance for a healthcare provider’s equipment, or a medical device manufacturer’s product liability—three related topics that we distinguish below.
Why Medical Equipment Is a Special Case
Three characteristics make these shipments more sensitive than average.
The value is concentrated and often difficult to replace after the fact: an optical instrument, a probe, or an electronic module can account for a significant portion of an order, with long lead times for replacement.
Fragility is as much a functional issue as it is a physical one. A device may arrive without any apparent damage but may be out of calibration due to vibrations or shocks during shipping. Putting it back into service then requires recalibration—and sometimes recertification—the cost and time involved in which are nothing like those of a simple cosmetic repair.
Finally, downtime comes at a cost of its own. Equipment that is out of service means a delayed installation, a halted testing line, or a service that cannot open. This loss of revenue often exceeds the value of the asset itself.
The carrier's liability is limited to the weight.
In the absence of specific coverage, the only recourse is to hold the carrier liable. This liability is presumed—which offers protection—but it is capped based on weight and subject to grounds for exemption.
The SDR is a floating-value unit of account used by the International Monetary Fund; only amounts in SDRs are considered official, while euro equivalents are for reference only. National regulations vary from one European country to another. The result is inevitable: for equipment with a high value-to-weight ratio, the capped indemnity covers only a fraction of the loss. The full mechanism is detailed in our guide to cargo insurance.
Added to this are the grounds for carrier exemption: fault on the part of the claimant, inherent defect, unavoidable circumstances, and—above all—missing or defective packaging, which is the primary reason for rejection in the market. For sensitive equipment, the quality and traceability of the packaging are therefore crucial.
Understand the different types of coverage so you don't choose the wrong policy
Four concepts are often conflated in research, even though they do not refer to the same thing.
The liability of carrier is the legal obligation described above, subject to a weight limit.
The “declared value” option on the carrier provides coverage for the Limit in exchange for an additional fee, but remains subject to its liability provisions, including its exemptions and exclusions.
Ad valorem property insurance is a standaloneproperty insurance policy: it provides compensation for property damage based on the insured value, without requiring that the liability of the carrier be established. This is the subject of this guide, and the principle is explained in our guide to ad valorem insurance.
Finally, two related types of coverage do not pertain to shipping:insurance for a healthcare provider’s equipment (both in the office and while traveling) and product liability coverage for a manufacturer of medical devices. Neither is intended to compensate for the value of a shipment entrusted to a carrier.
The regulatory framework, and why it matters after a disaster
Medical and laboratory equipment is subject to strict compliance requirements: the European Medical Device Regulation (Regulation (EU) 2017/745, known as the MDR), the In Vitro Diagnostic Medical Devices Regulation for laboratory equipment (Regulation (EU) 2017/746, known as the IVDR), and the quality management systems specified in ISO 13485. The CE marking certifies this compliance.
This framework has direct implications in the event of an incident. A damaged device cannot always be “repaired” informally: returning it to service may require intervention by a qualified technician, a new inspection, or even recertification, to ensure compliance and traceability. Coverage must therefore be based on the cost of restoring the device to a compliant condition, not just its market value, and the contract’s basis for compensation should be interpreted in this light.
From the Incident to Restoration of Service
The quality of the coverage is meaningless if the proper procedure is not followed. Upon delivery, inspect the equipment and note specific, well-founded reservations on the delivery slip; vague reservations are weak, whereas functional damage may not become apparent until testing. In the event of damage or partial loss, a substantiated claim must be filed with carrier within three days of receipt, excluding holidays, in accordance with Article L.133-3 of the Commercial Code; this deadline applies to the claim against Carrier and is separate from the deadline for reporting the claim to the insurer, as specified in the contract.
A mechanism links these steps: subrogation. The insurer that pays the claim then exercises its right of recourse against the carrier; preserving this right of recourse—through the filing of claims and adherence to deadlines—is essential for receiving full compensation. For calibrated equipment, also document its condition prior to shipment, which facilitates the assessment and cost estimation of bringing it back into compliance.
Optimizing Coverage: Efficiency and Cost Control
Beyond providing protection, a well-designed equipment insurance policy serves as a tool for ensuring an efficient, steady flow of equipment.
It covers the actual value rather than a flat rate based on weight, which eliminates residual exposure for high-value goods. It is independent of the carrier, which allows customers to retain their existing logistics contracts and freely compare shipping options. It avoids minimum premium requirements that make carriers’ options less attractive for shipments of spare parts and components with low unit values—which are common in after-sales service. Finally, it consolidates all shipment flows—new shipments, after-sales service, demonstration loans, and returns—under a single policy, simplifying management and streamlining overall costs.
The speed of compensation is the last—but by no means the least—factor: the shorter the settlement process, the less the downtime impacts cash flow and the installation schedule. Above a certain unit value threshold, shipments require customized solutions, which we develop in collaboration with specialized partners.
For shipments with a very high value-to-weight ratio, see also our guide to insuring high-value parcels, and for industrial machinery and equipment, our guide dedicated to industrial equipment.
Sources
- Regulation (EU) 2017/745 on Medical Devices (MDR)
- Regulation (EU) 2017/746 on in vitro diagnostic medical devices (IVDR)
- ISO 13485 Standard (Quality Management Systems—Medical Devices)
- CMR Convention, Article 23; Montreal Convention (limit increased to 26 SDRs/kg as of December 28, 2024, ICAO): https://www.icao.int/news/international-air-travel-liability-limits-set-increase-enhancing-customer-compensation-0
- General Standard Contract, Decree No. 2017-461 of March 31, 2017, Légifrance: https://www.legifrance.gouv.fr/jorf/id/JORFTEXT000034330431
- Commercial Code, Article L.133-3