High Stakes in High Tech: Securing the Technology Supply Chain

High Stakes in High Tech: Securing the Technology Supply Chain
October 15, 2025 11 mins

High Stakes in High Tech: Securing the Technology Supply Chain

Logistics

As in-demand, high-value technology cargo travels through complex supply chains, any disruption can trigger costly delays and reputational damage. Leaders can manage volatility with a future-ready risk management approach backed by innovative insurance solutions and data-driven logistics.

Key Takeaways
  1. The growing global dependency on technology is intensifying pressure on already-complex supply chains.
  2. Trade turmoil, fragmented value chains and contractual ambiguity require a forward-looking approach to risk management.
  3. Building resilience requires agility, adaptability and the support of a specialized broker with global reach.

Table of Contents

  1. Introduction

  2. The Key Cargo Risks Facing Technology on the Move

  3. Tariff Turbulence: A Closer Look

  4. Contractual Risks in the Technology Industry

  5. Steps to Safeguard Your Tech Cargo

Imagine this: A shipment of servers that will help power a major product launch are enroute to a data center when a sudden jolt during transit damages key components, delaying deployment and costing millions.

For technology companies, cargo risk isn’t just operational — it’s reputational, financial and deeply personal. It’s also subject to the precarious dynamics of global supply chains. In Asia, technology manufacturing is moving out of China and into Malaysia, Thailand, Vietnam and Singapore,1 while in the United States, tariff uncertainty is redrawing trade routes and reshaping risk exposure. These transitions are creating new vulnerabilities — and new urgency for smarter risk strategies.

Geopolitical developments are just one of the many forces driving the accumulation of high-value technology cargo in transit. When key components don’t arrive on time, suppliers absorb the risk and buyers miss critical deadlines.

To navigate volatility, risk managers need support from brokers with global reach and deep sector expertise. A blend of traditional and innovative risk transfer solutions is essential to address the evolving nature of supply chain exposure, which is only set to grow in parallel with tech demand.

$728B

The global semiconductor market is expected to reach a new high of $728 billion by the end of 2025.

Source: World Semiconductor Trade Statistics 

Quote icon

New countries, new locations and new supply lanes bring new risks for technology cargo. The current global trade war, geopolitical tension and increasingly frequent weather disruptions add even more uncertainty. 

Andrew Green
Global Claims Leader, Transportation and Logistics

The Key Cargo Risks Facing Technology on the Move

For tech leaders, every shipment carries not just product, but promise. Damage, delay or theft can ripple through the supply chain, eroding customer trust and impacting reputations.

Key risks in shipping high-tech cargo include:

  • Accumulation Risks in Technology Cargo

    The risk of high-value cargo accumulating at any single point in the supply chain is on the rise. Advances in technology and surging consumer demand mean shipments are more concentrated — and more vulnerable. Global trade tensions and natural catastrophe events can disrupt the normal flow of products, causing pileups and increasing exposure.

    “As technology gets smaller and more valuable, a single shipment today can be worth several times what it was a decade ago,” explains Dr. Nick Chapman, Aon’s Head of Cargo and Logistics in Asia. “That means accumulation risk is only going to increase, making it even more challenging to manage and insure high-value tech cargos.”

  • Transit Risks for High-Value Tech Cargo

    Sensitive electronic components face multiple threats in transit — from humidity and moisture to shock, vibration and fire risks linked to lithium-ion batteries. These risks are amplified when cargo is delayed or rerouted, such as during extreme weather events.

  • Cargo Theft: A Persistent Threat in Tech Logistics

    Technology goods are often targeted because of their high value, compact size and easy resale nature, particularly in Latin America, Europe and the U.S. In fact, direct or strategic theft of technology goods is a common cause of marine insurance claims.

Tariff Turbulence: A Closer Look

Evolving tariffs on technology components, such as semiconductors, are straining supply chains and eroding margins.

When tariffs are imposed or adjusted, a chain reaction follows: Companies increase shipping volumes to beat deadlines, cargo accumulates at customs and high-value tech products pile up at ports. Consequently, the risk of theft, loss and logistical challenges spikes.

Beyond delays, tariff turbulence and broader geopolitical shifts, such as changing regulations and sanctions, can cause:

  • Sudden changes in shipping routes, leading companies to increase storage capacity for greater flexibility — requiring stock throughput coverage — and to seek alternative transit logistics, which may be less secure or not fully vetted
  • Increased exposure to theft and lower security standards due to engaging with these under- or unvetted transportation entities
  • Complicated insurance coverage as cargo value fluctuates
  • Forced product redesign or sourcing from elsewhere to meet deadlines

The long-term implications of geopolitical risk could lead firms to shift manufacturing in-country or to new and emerging markets, but these moves take time and investment. Success lies in staying agile and adaptable. Businesses in Asia's technology sector are already responding by relocating manufacturing operations, reevaluating investment priorities and diversifying supply chains.

“Such strategic flexibility is not merely a reaction to external pressures; it is a proactive approach to risk management that helps organizations maintain competitiveness and operational continuity,” says Stephen Rudman, Aon’s Head of Marine in Asia. “By continuously monitoring geopolitical developments and trade policy shifts, companies can anticipate potential challenges and take decisive action to mitigate risk.”

Contractual Risks in the Technology Industry: Why Clear Agreements Matter

Managing exposure to cargo risks starts with the contract. In the fast-paced world of technology, speed-to-market often takes priority in many agreements between designers and manufacturers. While this approach supports agility, the urgency also leaves room for ambiguity around who holds the risk of loss at different stages, such as during manufacturing or storage.

Gray areas can lead to complications when losses occur:

  1. Unclear wording: Valuation clauses can fail to account for the appreciation in value at various stages of manufacturing, leading to underinsured losses.
  2. Insufficient contract review: Operational speed can sideline risk management or legal teams, leaving gaps in liability and coverage.
  3. Law and jurisdiction: Risks are often accepted under a 3Cs (Care, Custody and Control) clause when working with original design manufacturers. However, local laws vary in defining contractual relationships, which can affect claim outcomes.

When contracts lack clarity, insurance claims can be delayed or complicated — especially for high-value, rapidly appreciating tech products. Clear wording means the right party can claim for a loss and that the payout reflects the true value at risk.

Team

Capability Overview

Innovative Insurance Solutions for Technology Cargo Risks

As high-value cargo becomes more concentrated — in single shipments and fixed locations — traditional insurance solutions are struggling to keep pace. Placing adequate cover is increasingly difficult and innovation is needed to create flexible, responsive risk transfer strategies. "We’re already at a point where capacity only just matches some clients’ exposure,” says Dr. Nick Chapman, Aon’s Head of Cargo and Logistics in Asia. “Extra capacity will help, but insurers must innovate and offer competitively priced, tailored solutions. Deploying these strategically in an insurance tower is key to ensuring clients have the protection they need to succeed."

Since alternative risk transfer solutions require careful consideration of pricing, risk appetite and organizational needs, tech organizations should work closely with risk advisors to determine the best fit for their evolving risk profile.

5 Steps to Safeguard Your Tech Cargo

  1. Work with Specialist Brokers on Program Design

    Regularly review and update insurance programs with your broker to ensure they are flexible enough to respond to sudden changes in value, shipping routes or regulatory requirements — and consider stock throughput insurance to help manage these risks more effectively. Where effective loss prevention processes are in place, your broker can help communicate these to the market as part of submissions.

    “Deeply specialized broking teams have the ability and resources to not only craft bespoke insurance contracts at the front end, but also bring in resources to address grey-swan-type events when they do occur,” underscores Shady Ismail, Chief Commercial Officer for Aon’s Marine Practice in the United States.

  2. Involve Key Teams in Contract Reviews

    Engage contract review specialists, especially those familiar with marine and cargo risks, to confirm that liability is assigned appropriately. Contract and valuation wordings should be robust and clearly define responsibilities and coverage.

    “Always tap into your risk managers and legal teams during contract negotiations for a well-rounded approach to profit and risk,” says Ismail. “If that’s not possible, leverage a specialized broker contract review team.”

  3. Manage Exposure to Geopolitical Risk

    Bring in global practice groups and cross-functional teams to access local contract knowledge, logistics expertise and regional best practices. Proactively communicate with logistics and legal teams to assess and address vulnerabilities in the supply chain that may arise from geopolitical events.

  4. Embed Loss Control into Supply Chain Logistics

    Focus on loss prevention strategies powered by real-time data and analytics to safeguard cargo security and physical integrity.

    Before transit, ensure robust packing and preparation suited multi-modal transport, with clear carriage and handling instructions. Employ tracking technology with geofence, shock, environmental and light sensor triggers for real-time indication of in-transit location, integrity and conditions, enabling timely intervention. Over the longer term, continually evaluate freight logistics partner performance and address identified vulnerabilities.

  5. Tackle Strategic Theft via Verification and Vetting

    Implement layered theft prevention programs that integrate all stakeholders, from origin to destination. This can involve pre-vetting freight brokers and transportation providers, establishing secure freight booking systems and processes, training logistics stakeholders in evolving theft methods and performing compliance monitoring of providers.

Quote icon

Today, powerful technology tools can provide incredible visibility over exactly what cargo is where, informing risk transfer strategies and encouraging agility in implementing proactive and effective risk management measures.

Chris Law
Senior Vice President, National Marine Practice, United States
Container

Case Study

From Risk to Resilience: Securing Semiconductor Supply Chains

A large semiconductor company suspected its coverage for contingent exposures was falling short — leaving the business vulnerable to unexpected costs. Insurers were hesitant to offer higher coverage due to geographic uncertainties and a lack of information across many supply chains. To quantify supply chain risks and identify growth opportunities, Aon conducted a comprehensive Business Impact Analysis, reviewing the firm’s complex supply chain data and broader risk strategies. In turn, the firm was able to access better risk control, realize tax efficiencies and gain capital for growth, while achieving full insurance coverage limits.

Next Steps: Elevate Your Risk Mitigation Playbook

When you’re shipping the future, every detail matters. That’s why we build protection into every step of the journey.

Aon’s global practice group and cross-functional collaboration provide clients with access to specialized knowledge and best practices from around the world, ensuring that solutions are tailored to the unique risks of the technology industry.

Take a proactive approach to tech cargo risk management — start a conversation with us today.

The Aon Difference

  • 03
    Collaborative Approach

    Our cargo and logistics practice groups work together to give firms access to integrated solutions that address the full spectrum of risks facing cargo in-transit.

Aon’s Thought Leaders

Dr. Nick Chapman
Head of Cargo and Logistics, Asia

Andrew Green
Global Claims Leader, Transportation and Logistics

Shady Ismail
Chief Commercial Officer, Marine Practice, United States

Chris Law
Senior Vice President, National Marine Practice, United States

Patrick O'Neill
Marine Practice Leader, United States

Stephen Rudman
Head of Marine, Asia

Jillian Slyfield
Global Chief Innovation Officer

Tomas Winje
Head of Cargo and Logistics, Europe, the Middle East and Africa

General Disclaimer

This document is not intended to address any specific situation or to provide legal, regulatory, financial, or other advice. While care has been taken in the production of this document, Aon does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the document or any part of it and can accept no liability for any loss incurred in any way by any person who may rely on it. Any recipient shall be responsible for the use to which it puts this document. This document has been compiled using information available to us up to its date of publication and is subject to any qualifications made in the document.

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