Marine Cargo Insurance

Coverage Inclusions & Details

Marine Cargo Insurance-also known as freight, marine, or shipping insurance-protects goods and merchandise against loss or damage while in transit by sea, rail, road, or air, and during storage anywhere in the world between the point of origin and the final destination.

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Who Needs Cargo Insurance?

Cargo insurance isn’t just for importers, exporters, or transport companies. Nearly every business will, at some stage, need to ship or receive goods as part of their supply chain. Key industries that depend on shipping include:

• Manufacturing: Importing raw materials and distributing finished products

• Agriculture: Moving a wide range of goods, from grains and produce to livestock, to and from farms

• Wholesaling: Transporting goods from producers to retailers

• Retail: Managing stock transfers and deliveries from warehouses

• Mining: Importing and exporting raw materials and equipment

While most shipments arrive safely, unforeseen incidents can have severe financial consequences if your goods are not properly insured.

When Is Cargo Insurance Needed?

Whenever you move goods from one location to another, it’s wise to have cargo insurance in place. Your policy will specify exactly when coverage begins and ends-typically starting before the goods leave the origin and concluding once they are received at their destination.

Cargo insurance can range from basic protection to comprehensive policies that cover loss of sales and product replacement. Coverage options are varied and may include cargo, commercial hull, and marine goods in transit insurance. These can often be combined for broader protection.

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Main Types of Cargo Insurance:

1. Open or Annual Cover
Ideal for regular shippers (such as importers, exporters, and freight forwarders), this policy covers multiple consignments shipped to and from various locations throughout the year. It can be set for a specific insured amount or for a fixed period (often 12 months), allowing unlimited shipments during that time. This is commonly called an ‘Open Policy’ or ‘Annual Policy.’

2. Single Cargo Shipments
Best for one-off shipments, this policy covers individual consignments from the point of departure to the final destination, whether that’s a port or the customer’s premises. Often known as a ‘Voyage Policy’ or ‘Warehouse to Warehouse’ cover, it is suitable for individuals and small businesses with occasional shipping needs.

3. Inland Cargo Insurance
This policy covers the overland transport of commercial goods.

4. Marine Goods in Transit
Designed for commercial transport operators, this insurance protects goods being moved under a cartage agreement. Coverage can be tailored based on the terms of your contract with the client.

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Cargo insurance is a complex product with many variables depending on your specific circumstances. To ensure you have the right protection, it’s important to consult with a professional insurance adviser who can tailor coverage to your unique needs.