However, lack of precision targeting in Hezbollah rocket attacks and continued conflict means that underwriters are erring on the side of caution, Aon said, noting that London sees Israel as an enhanced risk.

Additional premium war risk rates are nevertheless inconsistent, which is good for the cargo owner who can shop around for the most competitive rate for the required coverage, Aon pointed out.

An additional premium has the option to cover both war risks and strikes, the latter including terrorist activity, thus ensuring protection for the cargo owner regardless of whether this conflict is deemed war or a terrorist activity by the underwriter.

The standard additional premium for a country such as Venezuela sits at a rate of about .05 percent of the cargo's value, Aon said. But for Israel, deemed an elevated risk, cargo owners can expect their premiums to fetch up to 15 percent.

“As Haifa is closed, there's double the traffic trying to sail via Ashdod, leading to congestion and some vessels being diverted to Cyprus, for example,” pointed out Stephen Garrard of Aon Marine's cargo team. “Even though cargo may not suffer a direct hit from the rockets, owners should recognize that these delays are in turn leading to increased exposure whilst goods are in temporary storage waiting to travel via the port.

“As still in transit, cargo will be covered under the standard policy, but owners need to be aware of maximum limits they can claim on,” he continued. “Owners could face a potential shortfall if suddenly two or three of their shipments are exposed at the same storage location, increasing the potential amount of their claim for a one-off incident.”

Aon noted that cargo owners who have taken a block annual war policy would not be subject to additional premiums, but those looking for one-off covers, or needing to pick up insurance partway through a journey, will need to be prepared for the increased rates.

Cargo shippers should try to ensure that vessel owners do not terminate their contract before the final destination is reached, the broker said. The ship owner could decide to discharge the cargo at an alternative port, such as Cyprus, saying the vessel has traveled as far as it can without becoming entangled in the conflict or the congestion at Ashdod. In this case, the cargo owner may immediately find they are without any cover and an additional premium may have to be paid to follow the cargo through to its final destination on a new vessel.

Business interruption cover is vital for project cargo involved in construction works, Aon said, but Israeli exporters of goods such as kiwis or avocados need to consider the implications of overripe fruit arriving in Europe due to port delays.

Aon said it is crucial for goods owners to take out cargo insurance as freight forwarders cannot be held liable for loss or damage to cargo as the circumstances of conflict are beyond their control.