What is marine cargo insurance?
When you see the word ‘marine’, you immediately associate it with all things relating to the sea. However, marine cargo insurance does not just cover goods at sea. It is a specific division of property insurance that insures property while it moves from A to B against damage or loss as a result of transportation by sea, air or land.
Many cargo journeys require a number of different methods of transportation and the Marine Insurance Act 1906 (MIA) covers them all.
What would happen to your business if an entire shipment were lost? If that seems unthinkable then you need to consider safeguarding your cargo with the relevant insurance.
Accidents happen, so you should ensure that you have the correct level of cargo insurance to protect their business.
Who needs marine cargo insurance?
In international trade the liability of carriers (freight forwarders, airlines, shipping lines etc.) is limited by law. Compensation may therefore be considerably lower than your actual loss. Moreover, conventions are often further limited due to additional exclusions of liability.
In case a shipment is damaged or lost, the insured customer will be compensated for the full replacement value of the goods.
These can range from:
- Logistics operators
- Large project-cargo operations
What does marine cargo insurance cover?
Marine cargo insurance covers all risks of loss of or damage to goods during transportation and related storage.
The amount of marine cargo insurance you need will depend on the any one consignment limit and the estimated annual sendings per territory value.