What is Marine Insurance?
Marine cargo insurance covers loss of or damage to cargo in sea transport, as well as general average and salvage charges, under the Institute Cargo Clauses (ICC).
Sea transport carries its own risks: heavy weather, stranding or sinking of the vessel, containers lost overboard, port handling and general average. When general average is declared, even cargo owners whose goods are undamaged may have to contribute to salvage costs.
Marine insurance covers these risks from port of loading to port of discharge or door to door. Cover terms for special cargo such as bulk, project cargo and dangerous goods are arranged separately with the insurer.
What is covered?
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Main transit perils
Sinking, stranding, collision of the vessel and fire.
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Container loss
Containers lost or washed overboard.
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Port and handling
Damage during loading, unloading and transhipment.
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General average
The cargo owner's general average contribution and the guarantee process.
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Salvage charges
Reasonable costs to save the cargo and minimise the loss.
Optional extensions
- War and strikes clauses
- On-deck cargo cover
- Delay in start-up (DSU) for project cargo
- Dangerous goods shipments
Who is it for?
- Companies importing and exporting by sea
- Traders of bulk commodities (grain, minerals, chemicals)
- Buyers of project and heavy-lift cargo
- Forwarders and logistics firms (on behalf of their clients)
Information needed for a quote
Sharing the following information lets us obtain fast and accurate quotes from several insurers.
- Type of goods, packing and value
- Ports of loading and discharge, transhipment details
- Vessel name and age (if known)
- Delivery terms and bill of lading details
Frequently asked questions
What is general average?
Sacrifices and expenses deliberately made to save the vessel and cargo from a common peril are shared between ship and cargo owners in proportion to their values. The insurer pays the insured cargo owner's share and provides the guarantee needed to release the cargo.
Can on-deck cargo be insured?
Yes, but because on-deck cargo carries higher risk it is usually covered with narrower clauses or an additional premium. Containerised on-deck shipments are generally assessed on normal terms.
Does marine insurance provide door-to-door cover?
Yes. The policy can cover both land and sea legs, from collection at the origin warehouse to delivery at the destination warehouse.
Scope of cover and limits are determined by the general and special conditions of the issuing insurer.