Marine Cargo Insurance

Cover at a glance

Worldwide protection for inbound cargo and/or export cargo from the seller premises to the buyer at final destination.
Cover is on an all risks basis for loss or damage to the cargo in transit, unless otherwise excluded in the policy wording.
Basis of valuation is that which is shown on the invoice plus any additional costs associated with the transit unless otherwise agreed with the insurer and shown on the schedule.
Cover extends to include general average and salvage.

Policy Overview

Cover is provided on an all risks basis for damage to cargo that is either being imported or exported worldwide. The cover extends to cover the shipping vessel, terminals at point of origin and destination and cargo in transport between the seller and the port of origin and the port of destination and the purchasers agreed final destination.

The cover will be determined by the freight forward terms of contract which can vary from (FOB) Free on Board, (CIF) Cost Insurance and Freight, (Ex Works) and (CFR) Cost and Fright (CIP) Carriage and Insurance Paid to. These are known as incoterms and determine who is responsible to purchase the insurance and to what extent, the buyer or the seller.

Insured’s can purchase single cargo policies covering a specific shipment or can purchased on an Open Cover Marine cargo policy covering all imports and exports on an annual basis.

Additional Benefits

Airfreight replacement for imports
Benefits for exports including the sellers interest for FOB and CFR
Debris Removal
No disposal of branded goods with consent
Cover at packers premises up to 90 days
General average and salvage
Exhibition and demonstration risks

The information provided on this page that may have been implied is General Advice only and does not take into consideration your specific needs, risk appetite or financial requirements. Please contact our office to discuss and review your needs and the appropriate financial product best suited to meet your requirements . Before purchasing any financial product, you should always read the Product Disclosure Statement to ensure the product is suitable for your needs.

Frequently Asked Questions

What should I insure?

The most common method is to insure Invoice value plus on costs and a profit margin if there is the potential to loose the customers order following a loss.

How is my premium calculated?

Premium is calculated on the incoterms (FOB), (CIF), (CFR), the destination, length of the voyage, any transhipment, layovers and the value of the cargo being shipped.

What does general average mean?

When General Average is declared in the event of an emergency, the principle of maritime law is triggered where if cargo is jettisoned or expenses incurred to save loss of life, the vessel or others goods on board , the loss is shared proportionately by all parties with a financial interest in the voyage. Your financial interest will be based on the value of your shipment in proportion to the total value of all property at risk. Not only could you loose your cargo but you may also become responsible for salvage and other related costs for which the policy will respond accordingly.

Tip

Even though your carrier has their own insurance through legislated carrier liability cover, this is often limited cover and calculated on weight and not the actual replacement value of the cargo. It is therefore important that additional cover is purchased through a Marine Cargo policy. In addition you will be also become responsible for any general average costs should general average be triggered.

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