Marine Cargo Insurance

This is a mandatory maritime law where all stakeholders share the cost of a loss if cargo is sacrificed to save the ship (e.g., throwing containers overboard during a storm). If you are uninsured, you must pay your share of the ship’s rescue costs out of your own pocket before your cargo is released.

Yes. A standard “All Risks” policy typically covers the goods from the moment they leave the sender’s warehouse, through all intermediate stops (p orts, rail, or truck), until they reach the final destination.

These are the global standard terms. Clause A is the widest (“All Risks”), covering almost any accidental loss. Clause C is the most restrictive, covering only major events like the ship sinking, fire, or collision.

Freight carriers have “Limited Liability” by law (often based on weight, not value). If they lose a $50,000 container, their legal payout might only be $500. Your own policy pays the full invoice value.

“Inherent Vice” refers to damage caused by the nature of the goods themselves (e.g., fruit rotting or iron rusting). This is a standard exclusion in almost all marine policies unless specifically negotiated.

Not automatically. In the shipping world, War and SRCC risks are usually added via a specific endorsement for an extra premium, as they are excluded from the base cargo clauses.

No. Marine insurance covers physical damage to the goods. It does not compensate you for lost profits because a seasonal product arrived two weeks late due to a port strike.

The industry standard is to insure for 110% of the CIF value (Cost + Insurance + Freight). The extra 10% is intended to cover the administrative costs and lost time associated with replacing the shipment.