Marine Insurance Info — Your Trusted Guide for Global Shipping Risk Coverage
Welcome to Marine Insurance Info, a comprehensive guide designed for shipping companies, exporters, importers, and logistics professionals who require a clear understanding of marine insurance policies, terms, and procedures.
We simplify complex policies, explain industry terms, and outline practical procedures, helping you choose the right coverage, comply with legal requirements, and handle claims with ease. Whether you’re navigating major trade routes or managing local shipments, our verified insights empower you to minimize risks and protect every voyage.
Warehouse-to-Warehouse
Incoterms Context
General Average
Sea • Air • Road • Rail
What Is Marine Insurance?
Marine insurance covers the financial risk of physical loss or damage to ships, cargo, terminals, and related maritime assets during transportation by sea, air, or land. Marine insurance is a financial safeguard that covers the risk of physical loss or damage to ships, cargo, terminals, and related maritime assets during transportation by sea, air, or land.
Coverage may include protection for vessels and machinery, goods in transit, freight charges, and liabilities to third parties in case of accidents, pollution, or injuries. Specialized policies also exist for extraordinary risks such as war, piracy, and natural disasters.
Marine insurance plays an essential role in international trade by reducing financial exposure and ensuring the continuity of supply chains in the face of unpredictable events.
This includes:
-
Vessels and their equipment (hull & machinery)
-
Goods in transit (cargo)
-
Freight charges
-
Third-party liabilities (pollution, accidents, injuries)
Special perils like war, piracy, or natural disasters
Marine insurance plays a vital role in safeguarding global commerce and ensuring smooth operation of supply chains.
What Does Marine Cargo Insurance Cover ?
Types of Marine Insurance
Understanding the classification of marine insurance helps identify which policy fits a given transport or shipping scenario.
-
Covers physical loss or damage to the vessel itself
-
Includes engines, hull structure, machinery, and onboard equipment
-
Typically taken by shipowners or leasing companies
1. Hull and Machinery (H&M) Insurance
2. Cargo Insurance
-
Covers loss or damage to cargo during transport by sea, air, or inland routes
-
Can be per shipment or under open policies covering multiple consignments
-
Clauses vary (e.g., Institute Cargo Clauses A/B/C)
3. Freight Insurance
-
Protects the freight charges payable by the buyer or client
-
Useful when the cargo is lost and the consignee refuses payment
4. Liability Insurance / P&I (Protection & Indemnity)
-
Covers legal liabilities to third parties due to collision, oil spills, crew injuries, etc.
-
Typically arranged through mutual insurance associations (P&I clubs)
5. Specialized Policies
-
War Risk Insurance: Covers conflict zones and piracy areas
-
Port Risk Insurance: When vessels remain docked for extended periods
-
Builders’ Risk Insurance: For ships under construction or major repairs
-
Transit Insurance: Extends coverage beyond marine legs, often for multimodal shipments
Marine Insurance vs. Cargo Insurance
Although related, marine insurance and cargo insurance differ significantly in scope and application.
Marine Insurance is comprehensive, covering multiple aspects of maritime trade. It can include protection for vessels themselves (through hull and machinery insurance), cargo in transit, freight charges, and third-party liabilities such as collisions, pollution, or injuries. Marine insurance is therefore most relevant to shipowners, charterers, operators, and logistics providers who carry broad responsibilities in the shipping process.
Cargo Insurance, by contrast, is more limited in focus. It applies specifically to goods being transported and is usually purchased by exporters, importers, and traders who want to secure their shipments against physical loss or damage. Unlike marine insurance, it does not extend to vessels, freight charges, or third-party liabilities. Cargo insurance can be arranged per shipment or under open policies covering multiple consignments, providing flexibility for frequent shippers.
In practice, both policies may be in effect simultaneously. A shipping company may secure marine insurance to protect its vessel and operations, while the cargo owner purchases cargo insurance to safeguard the value of their goods. Together, these policies create a layered system of protection that reduces risk across all participants in international trade.
Standard Documents Required
To secure marine insurance coverage or file a claim, the following documents are typically needed:
01
Bill of Lading / Shipping Note
02
Commercial Invoice
03
Packing List
04
Certificate of Insurance
05
Survey Report (in case of damage)
06
Freight Invoice
07
Port or Customs documentation (in select cases)
08
