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Marine Cargo Insurance Explained
Whether goods move by sea, air, or road as part of an international shipment, cargo is exposed to a distinct set of risks from the moment it leaves the warehouse to final delivery.
What marine cargo cover actually protects
Despite the name, marine cargo insurance typically covers the full transit — not just the sea leg — including inland transport before loading and after discharge. It responds to loss or damage from events like rough handling, fire, collision, and in some cases theft or non-delivery, depending on the terms agreed.
Named perils vs. all-risk cover
Policies generally fall into two shapes: named-peril cover, which pays out only for specific listed causes of loss, and broader all-risk cover, which responds to any loss not explicitly excluded. All-risk cover costs more but removes a lot of the ambiguity about whether a particular incident is actually covered.
Why Incoterms matter
Who's responsible for insuring the goods at each stage of a shipment is usually determined by the Incoterm agreed in the sale contract (e.g. FOB, CIF, DAP). Understanding which party bears the risk — and therefore who needs to hold the policy — at each point in the journey avoids a costly gap in cover.