Marine Cargo
Insurance
Marine Cargo Insurance protects against the loss or damage of goods during transit by sea, air, rail, or land.
It protects cargo owners, exporters, importers, freight forwarders, and other parties involved in the transportation of goods against financial losses resulting from various risks and perils during transit.
Do you need Marine Cargo Insurance?
Marine cargo insurance is essential for businesses engaged in international trade or shipping goods across long distances, as it helps mitigate the financial risks associated with loss or damage to cargo during transit. By providing financial protection against unforeseen events or accidents, marine cargo insurance ensures that cargo owners can safeguard their investments and maintain the continuity of their supply chains.
The key components of Marine Cargo Insurance
Coverage
Marine cargo insurance covers loss or damage to goods during transit from the point of origin to the final destination. It typically protects against risks such as theft, pilferage, fire, explosion, sinking, grounding, collision, overturning of vehicles, water damage, and other perils.
Types of Policies
- Open Cover Policy: An ongoing policy that provides coverage for multiple shipments over a specified period, typically one year. It offers flexibility and convenience for businesses that frequently ship goods.
- Single Voyage Policy: A policy that provides coverage for a specific shipment or voyage from one point to another. It is tailored to the needs of individual shipments and is valid for a single journey.
- Annual Policy: Similar to an open cover policy, but with coverage renewed annually. It provides continuous coverage for all shipments made by the insured within the policy period.
Scope of Coverage
- Institute Cargo Clauses (ICC): Standardised clauses used in marine cargo insurance policies to define the scope of coverage, terms, and conditions. The most common ICC clauses are A, B, and C, which vary in the extent of coverage and exclusions.
- All Risks Coverage: Comprehensive coverage that protects against all risks of loss or damage to the cargo, except those specifically excluded in the policy.
- Named Perils Coverage: Coverage limited to specified perils or risks listed in the policy, such as fire, theft, collision, or sinking.
Coverage Limits and Deductibles
Marine cargo insurance policies typically have coverage limits, which represent the maximum amount the insurer will pay for a covered loss, and deductibles, which are the amounts the insured must pay out of pocket before insurance coverage applies.
Additional Coverage Options
- War Risk Coverage: Protection against losses caused by acts of war, hostilities, civil unrest, piracy, or other warlike operations.
- Strikes, Riots, and Civil Commotions (SRCC) Coverage: Coverage for losses resulting from strikes, riots, civil disturbances, or labor disputes.
Customisable Coverage
Marine cargo insurance policies can be tailored to meet the specific needs of shippers, cargo owners, or businesses involved in international trade. Coverage options, limits, deductibles, and policy terms can be adjusted based on the nature of the cargo, transportation route, and risk profile.
How much Marine Cargo Insurance cover do you need?
Determining the appropriate amount of marine cargo insurance needed depends on various factors related to your business operations, the value and volume of goods transported, the transportation routes used, and the specific risks associated with your cargo. It’s not an easy area, but we can work with you to understand your potential exposure and build a policy that covers your needs.
Step 1
Your business
We meet with you to understand your unique business and the risks it faces.
Step 2
The market
We will take the information and research the market to find the most suitable policy.
Step 3
Your cover
Once you have agreed, we put your policy in place and you are covered.
If you have an insurance need then please get in touch
At Minories Partnership we work with our clients to construct the most appropriate insurance programme for their specific needs. And we’d be delighted to do the same for you. Get in touch and we can talk to you about your needs with no obligation.
