Marine cargo insurance protects your goods against loss or damage while they are in transit, whether by sea, air, or road. For any business that imports, exports, manufactures, or moves goods, it is the cover that stands behind the value travelling between your supplier, your warehouse, and your customer. We structure cargo cover around how and where your goods actually move.
What marine cargo insurance covers
Marine cargo insurance responds to physical loss or damage to goods during the course of carriage, from the point cover attaches to the point it ends. It applies across sea, air, and land transit, and can extend to inland movement and storage along the way. The cover is for the goods themselves, and it is distinct from a carrier's or freight forwarder's liability, which responds only where the carrier is at fault.
How is the sum insured calculated on marine cargo insurance?
The scope of a cargo policy is usually defined by the Institute Cargo Clauses, the standardised terms used worldwide. Institute Cargo Clauses (A) provide the broadest, all-risks cover, while (B) and (C) cover a narrower set of named perils. Even all-risks cover carries standard exclusions, such as loss from inherent vice, ordinary wear and tear, delay, and inadequate packing. Matching the clause to the nature and value of your goods is the first decision in arranging the cover.
Should I take a single shipment or an open cover policy?
For a one-off or occasional shipment, a single voyage policy covers that consignment alone. For a business shipping regularly, an open cover or annual policy insures shipments automatically on agreed terms, with the premium adjusted to actual volumes, which removes the need to arrange cover consignment by consignment. The right structure depends on how often you ship and how predictable your volumes are.
What does marine cargo insurance not cover?
The most common gap is a mismatch between the insurance and the trade terms. Incoterms determine the point at which risk passes between buyer and seller, and a policy that does not align with the agreed term can leave goods uninsured for part of the journey. Cover that stops at the port rather than continuing to the final warehouse, or that does not contemplate transhipment and storage, leaves a gap precisely where goods are often most exposed. Confirming that the cover follows the goods from origin to destination, and aligns with your Incoterms, is where the protection is decided.
Frequently asked questions
What is the difference between all-risks and named-perils marine cargo cover?
Marine cargo insurance is typically placed on one of two bases. All-risks cover (using Institute Cargo Clauses A) responds to any accidental loss or damage to the goods during transit, subject to standard exclusions. Named-perils cover (using Institute Cargo Clauses B or C) responds only to losses caused by specific listed events, such as fire, vessel sinking, or overturning of a land conveyance, and provides narrower protection. For most commercial shipments, all-risks cover under ICC A is the preferred basis, as it places the burden on the insurer to prove a loss is excluded rather than on the insured to prove it falls within a named peril. The choice of clause affects both the scope of protection and the premium.
Does marine cargo insurance cover goods in a warehouse during transit?
Yes, a standard marine cargo policy on an all-risks basis covers goods during the ordinary course of transit, which includes temporary storage at warehouses and transhipment points that form part of the journey. Cover typically attaches from the time goods are first moved in the seller’s warehouse for the purpose of loading and continues until they are delivered to the buyer’s final warehouse or storage facility. Cover ends at the final warehouse or 60 days after discharge at the final port of destination, whichever comes first. Goods held beyond that point require a separate storage or stock throughput policy. Traders, importers, exporters, and freight forwarders handling goods on behalf of clients in Singapore should confirm whether their policy covers the full door-to-door journey, including any intermediate storage.
How we structure it
We take time to understand what you ship, the routes and modes you use, your trade terms, and the value at risk on a typical consignment, and we place cover with our appointed insurers around that. We structure the policy to follow your goods for the whole journey, review it as your trade patterns change, and remain your point of contact if a claim arises. The aim is cover that travels with your goods and responds without gaps.