FAQ's

Marine insurance is a contract providing financial protection from losses to a ship, cargo, or freight while covered during water transport, and often during related land or air transport, due to various perils, including loss, damage and/or theft.

Marine insurance is useful for an entity that transports goods over the ocean (or includes sea legs), including importers, exporters, shipping providers, transportation providers, etc. Marine insurance protects you from losing goods or liabilities they may incur during the process of transport, etc.

The main types of coverage under marine insurance are:

• Cargo Insurance - insurance to cover goods being transported.

• Hull Insurance - insurance that covers the vessel.

• Freight Insurance - insurance associated with potential loss of freight revenue.

• Liability Insurance - insurance associated with liability to third party claims.

Cargo insurance generally covers loss or damage to goods being transported, subject to various perils such as weather, sinking, collision, theft or accidents. The issuing policy may cover related losses while loading or unloading depending on the clause in the policy.

Some standard exclusions are:

• Loss from fraudulent or intentional misconduct.

• Normal wear and tear of the goods; inherent vice (natural defect associated with the goods).

• Losses incurred from delays, bad packing, and failure to legally comply.

Marine hull insurance covers the ship/vessel itself. The policy will cover physical damage to the hull, machinery, and equipment, because of perils such as collision, grounding, fire, or heavy weather. There are other clauses which may cover additional perils such as war risk, strikes, and other specific perils.

These are standard sets of clauses included in marine insurance policies, and define coverage:

• Clause A - broad "all risks" coverage.

• Clause B - named perils coverage, not as wide coverage as A.

• Clause C - narrow coverage, less expensive than A and B.

Yes, marine cargo policies normally include "warehouse to warehouse" or "door to door" coverage, which means the goods are insured from the point of origination to the destination, including any land or air leg to destination, depending on the policy.

Marine insurance protects a business from significant financial losses as the result of damaged, lost, or destroyed goods while in transit. Marine policies also fulfil contractual, or law requirements, such as trade agreements, to protect from losses. Marine insurance also supports supply chain security and stability.

It is essential to understand: the type of coverage required (cargo / hull / liability); the specific risks to each route, any exclusions to policy coverage if applicable, the value of goods / vessel / liability insured, mode of transport (sea, land, air), the reputation of the insurance company, and clarity on the claims process.