Marine cargo insurance coverage
Our marine cargo insurance brokers equip Australian businesses with the cover to send or receive assets with confidence.
Insure against the specific risks of goods in transit
Cargo can face a range of risks in transit, from breakage caused by mishandling to delays due to severe weather. Marine cargo insurance covers physical damage to, or loss of, your goods whilst in transit by sea, air, rail or road.
At Ian Jones Insurance Brokers, we’ve helped cargo owners, transport operators and logistics companies in Australia protect against the financial loss of damaged or missing goods for over 35 years. Our experienced team takes the time to understand the exact processes used to ship goods. Enjoy peace of mind with comprehensive cover and correct claims management.
Find the right marine cargo insurance policy for your needs
Single cargo shipments
This is a common form of transit insurance, mainly taken out by individuals and small businesses for single shipments of cargo and freight. This is where the cargo, as a one-off shipment, is priced and covered as one shipment from a particular destination to another.
Also referred to as a ‘Voyage Policy’, this insurance only covers that specific shipment. Cover usually commences at the point of departure and ceases upon arrival at the cargo’s destination.
Open or annual cover for multiple shipments
This is the most common form of cargo insurance, most often used by regular shippers of goods, such as importers and exporters, including freight forwarding agents, where a policy is issued to cover several consignments being shipped to and from various ports and destinations throughout the year.
The policy can be either for a specific value that requires renewal once the insured amount is exhausted, or an open policy that covers an indefinite number of dispatches for an agreed period.
What marine cargo insurance covers
Marine cargo insurance covers the loss of goods whilst en route from one destination to another. The cover may be for the shipment of goods by air, rail, sea or vehicle from anywhere in the world to the point of collection.
Loss or damage in transit
Cover may apply when goods are accidentally lost or physically damaged during transport. Insured events can include theft, fire, collision, overturning, severe weather and other unexpected incidents.
Theft and non-delivery
A policy may cover cargo that is stolen, pilfered or fails to reach its destination. This can be especially important for high-value, theft-attractive or time-sensitive goods.
General average and salvage charges
When a serious maritime emergency occurs, cargo owners may be required to contribute their share towards the costs incurred to protect the vessel and remaining cargo.
Sue and labour expenses
Some policies cover reasonable expenses incurred to protect cargo after an insured event. These costs, often called sue and labour expenses, may include repacking, relocating or redirecting goods to prevent further damage.
Loading, unloading and temporary storage
Cover may extend beyond the main journey to include loading, unloading, connecting transport and temporary storage during the ordinary course of transit. The policy should clearly state where cover begins and ends.
Broad or specified-perils cover
Broad cover, also called “all risks” cover, generally protects against accidental physical loss or damage unless the cause is specifically excluded, whereas specified-perils cover only applies to events named in the policy.
Marine cargo insurance FAQs
Marine cargo insurance protects goods against insured loss or physical damage while they are being transported. Depending on the policy, cover may apply to domestic and international shipments travelling by sea, air, road, rail or courier.
A marine cargo insurance policy may cover risks such as:
- Accidental damage during transit
- Theft, pilferage or non-delivery
- Fire or explosion
- Collision, overturning or vessel stranding
- Water or weather damage
- Damage during loading or unloading
- General average contributions arising from a maritime emergency.
As exclusions, limits and conditions vary, it’s important to make sure the policy reflects the goods, destinations and transport methods involved.
No. Despite its name, marine cargo insurance can cover goods transported by sea, air, road or rail, depending on the policy.
The term originated when most international cargo was moved by ship, but it is now commonly used for insurance that protects goods throughout the broader transport journey. Cover may apply to domestic and international freight, including multiple transport methods within the same shipment.
For example, a shipment may travel by truck to a port, cross international borders by sea and then continue by rail or road to its final destination. A suitable marine cargo policy may cover the goods across each stage of this journey.
The risks, transport methods and geographic limits covered will depend on the policy wording, so businesses should confirm that their insurance reflects how and where their goods are transported.
Yes, both terms are generally used to insure the transit of goods.
Businesses that own, buy, sell or are financially responsible for goods while they are in transit should consider marine cargo insurance.
This may include:
- Importers and exporters
- Manufacturers and wholesalers
- Retailers and ecommerce businesses
- Distributors and suppliers
- Construction and project cargo operators
- Businesses transporting equipment, stock or raw materials.
Without suitable cover, a business may have to absorb the cost if goods are stolen, lost or damaged during transportation.
Maritime shipments can also create exposure to general average, where cargo owners may be required to contribute to certain sacrifices or emergency expenses incurred to protect a vessel and its cargo.
The need for insurance often depends on when responsibility for the goods transfers between the buyer and seller. Your sales contract and any existing insurance arrangements should be reviewed before goods are shipped.
Marine cargo insurance is generally not compulsory under Australian law for ordinary international shipments. However, it may be required under a sales contract, finance agreement, letter of credit or agreed Incoterm.
Even when insurance is not legally or contractually required, it can protect a business from having to fund the replacement of goods that are lost or damaged during transit. Buyers and sellers should confirm who carries the risk, who must arrange cover and when responsibility transfers.
The cost of a marine insurance premium depends on the value of cargo, the risk profile of the goods, the journey and the level of cover selected.
Insurance companies may consider:
- The type and volume of goods
- The origin, destination and distance travelled
- Whether freight moves by sea, air, road or rail
- Packaging and handling arrangements
- Shipment frequency and annual turnover
- Policy limits, excesses and optional cover
- Previous losses and claims history
- Whether cover is for one shipment or an annual policy.
Higher-value, fragile, perishable, theft-attractive or hazardous goods may cost more to insure.
Note that the insured value may also include freight, insurance and other expenses associated with shipping the goods.
Our insurance brokers can help you compare and secure a tailored policy that reflects the actual shipment risk without paying for unnecessary inclusions.