Marine Cargo Insurance

Cover at a glance

Worldwide protection for inbound cargo and/or export cargo from the seller premises to the buyer at final destination.
Cover is on an all risks basis for loss or damage to the cargo in transit, unless otherwise excluded in the policy wording.
Basis of valuation is that which is shown on the invoice plus any additional costs associated with the transit unless otherwise agreed with the insurer and shown on the schedule.
Cover extends to include general average and salvage.

Policy Overview

Marine Transit Insurance provides essential coverage for businesses involved in the import and export of goods worldwide. Offering protection on an all-risks basis, this type of insurance covers potential damage to cargo while in transit. Whether your goods are being shipped by sea, air, or land, Marine Transit Insurance ensures that your cargo is protected from the point of origin to the final destination. Coverage typically extends to shipping vessels, terminals at both the point of origin and destination, as well as cargo in transit between the seller’s location and the buyer’s final delivery point.

The terms of your Marine Transit Insurance are often dictated by Incoterms (International Commercial Terms), which establish the responsibilities between the buyer and the seller in terms of transportation and insurance. Common Incoterms include Free on Board (FOB), Cost Insurance and Freight (CIF), Ex Works, Cost and Freight (CFR), and Carriage and Insurance Paid To (CIP). These terms determine who is responsible for purchasing the insurance and at which point during the transit process the liability transfers from the seller to the buyer. Understanding these terms is crucial for ensuring that the right party is protected during each stage of the cargo’s journey.

Marine Transit Insurance is flexible and can be tailored to meet the specific needs of your business. You have the option to purchase single cargo policies, which cover individual shipments, or an Open Cover Marine Cargo policy, which provides ongoing coverage for all imports and exports over the course of a year. Open Cover policies are particularly beneficial for businesses that ship goods regularly, offering peace of mind that every shipment is protected without the need to arrange separate policies for each one.

Additional Benefits

Airfreight replacement for imports
Benefits for exports including the sellers interest for FOB and CFR
Debris Removal
No disposal of branded goods with consent
Cover at packers premises up to 90 days
General average and salvage
Exhibition and demonstration risks

The information provided on this page that may have been implied is General Advice only and does not take into consideration your specific needs, risk appetite or financial requirements. Please contact our office to discuss and review your needs and the appropriate financial product best suited to meet your requirements . Before purchasing any financial product, you should always read the Product Disclosure Statement to ensure the product is suitable for your needs.

Frequently Asked Questions

What does Marine Transit Insurance cover?

Marine Transit Insurance provides cover for physical damage or loss to your cargo while it is being transported. This includes damage during shipping, handling at ports and terminals, and any damage that occurs while the cargo is in transit to or from the port. Coverage is typically provided on an all-risks basis, meaning it includes most types of unforeseen damage or loss unless explicitly excluded in the policy.

What are Incoterms, and why are they important for Marine Transit Insurance?

Incoterms, or International Commercial Terms, define the responsibilities of buyers and sellers for shipping goods internationally. They determine who is responsible for purchasing insurance and at which point the liability transfers from the seller to the buyer. Examples include Free on Board (FOB), where the buyer takes responsibility once the goods are on the ship, and Cost Insurance and Freight (CIF), where the seller is responsible for insuring the goods up to a specific destination.

What is the difference between single cargo policies and Open Cover policies?

A single cargo policy covers a specific shipment from the point of origin to its final destination. This is ideal for businesses that ship goods infrequently or for one-off consignments. An Open Cover policy, on the other hand, covers all of your imports and exports over a specified period, typically a year. This is particularly useful for businesses that regularly ship goods, as it offers continuous protection without the need to arrange a new policy for each shipment.

Does Marine Transit Insurance cover all modes of transportation?

Yes, Marine Transit Insurance can cover multiple modes of transportation, including sea, air, and land. It provides protection for cargo at every stage of its journey, whether it is being shipped across oceans, transported by air, or moved overland by trucks or rail. Coverage typically applies from the seller’s location to the buyer’s final delivery point.

How does Marine Transit Insurance handle damage claims?

In the event that your cargo is damaged or lost during transit, you will need to file a claim with your insurer. The process usually involves providing documentation such as the bill of lading, a commercial invoice, and a survey report detailing the damage. It is important to document the condition of the goods both before and after transit to ensure a smooth claims process.

Who is responsible for purchasing Marine Transit Insurance, the buyer or the seller?

The responsibility for purchasing Marine Transit Insurance depends on the agreed-upon Incoterms. For example, under CIF (Cost Insurance and Freight), the seller is responsible for insuring the goods until they reach the buyer’s port. Under FOB (Free on Board), the buyer assumes responsibility once the goods are loaded onto the vessel. It is important to clarify these terms in your contract to ensure the appropriate party is covered.

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