Insurance & Risk
Marine Cargo Insurance Explained
Carriers’ liability is far more limited than most importers assume — if your cargo is lost or damaged in transit, you may recover only a fraction of its value. Marine cargo insurance closes that gap. Here’s what it covers and why it matters.
What marine cargo insurance is
Marine cargo insurance covers physical loss of or damage to your goods while they’re in transit — by sea, and despite the name, usually by air and road too. It protects the commercial value of the cargo from the moment it leaves the supplier until it reaches the final destination.
Why carrier liability isn’t enough
Shipping lines, airlines and hauliers limit their liability by international convention — often to a low amount per kilogram, regardless of what your goods are worth. A container of high-value cargo lost overboard might recover only a token sum under carrier liability. Insurance is what makes you whole.
What the cover includes
Cover typically follows the Institute Cargo Clauses. The broadest, Clauses (A), is effectively all-risks — covering loss or damage from most external causes. Clauses (B) and (C) are progressively more restricted, covering named perils only. The right level depends on your cargo, route and risk appetite.
Levels of cover
Institute Cargo Clauses
• Clauses (A) — broadest, effectively all-risks
• Clauses (B) — named perils, mid-level
• Clauses (C) — most restricted, major events only
The right level depends on your cargo, route and risk appetite.
When risk passes to you
Your Incoterm decides at what point in the journey the risk becomes yours — and that’s exactly when you need cover in place. Under terms like FOB, risk passes early, at the origin port, so relying on the seller’s insurance can leave a dangerous gap. Matching your insurance to your Incoterm is essential.
Arranging cover with your shipment
The simplest approach is to insure the cargo as part of arranging the freight, so there’s no gap and one party has the full picture. We arrange marine cargo insurance alongside the shipments we handle, sized to the value and the route, so your goods are protected door to door.
Related service
Marine Insurance
Cargo insurance that protects the value of your goods in transit by sea, air or road — arranged with your shipment.
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Want your cargo properly protected?
Tell us what you’re shipping and its value, and we’ll arrange the right marine cargo cover with your freight — quote within 24 hours.