Also known as: Marine Cargo Policy
Cover for goods in transit by sea, air, rail or road — domestic and international.
Marine Cargo Insurance covers loss or damage to goods while in transit. Despite the name it applies to all modes of transport, not only sea freight. Goods in movement sit outside the protection of both the warehouse they have left and the one they are heading to, which is why this cover exists as a distinct line. The policy typically operates warehouse to warehouse, covering the full journey including intermediate storage.
Importers, exporters, manufacturers moving raw materials or finished goods, distributors, e-commerce operators and any business with a supply chain that crosses a warehouse boundary. Whether the buyer or the seller insures depends on the Incoterms agreed — a detail that frequently leaves goods uninsured because each party assumed the other had arranged cover.
Sum insured is usually declared as invoice value plus freight plus a margin, commonly ten percent, to reflect the cost of replacement. For regular shipments an Open Policy covers all consignments within a declared annual turnover, with individual declarations made as shipments move. A Sales Turnover Policy takes this further, basing premium on annual sales rather than individual declarations.
The difference between a policy that responds and one that disappoints usually sits in details that are easy to overlook at purchase.
Not sure which combination fits your business?
Speak to an AdviserNo. It covers all modes — sea, air, rail, road and multimodal. The name is historic.
A policy covering all shipments over a period, typically twelve months, up to a declared limit. It removes the need to arrange cover for each individual consignment.
Standard international wordings. Clause A is all-risk and broadest, Clause C is the most restricted and covers named perils only. Clause B sits between them.
It depends on the Incoterm. Under CIF the seller insures. Under FOB the risk transfers to the buyer at the ship’s rail. Confirming this at contract stage avoids uninsured shipments.
No. Inadequate packing is a standard exclusion across cargo policies.
A maritime principle where all parties to a voyage share proportionally in losses from a voluntary sacrifice made to save the venture. Cargo insurance covers your contribution.