Logistics Terms
What Is Marine Cargo Insurance and Do You Need It?
4 min read
Marine cargo insurance protects the value of your goods against loss or damage while they are in transit, whether by sea, air or land. Despite the name, it is not limited to ocean shipments.
Why carrier liability is not enough
Carriers limit their liability by international conventions, often to a small amount per kilogram or package, far below the real value of most cargo. Cargo insurance covers the gap so you can recover the actual value if goods are lost or damaged.
What it typically covers
- Physical loss or damage in transit, subject to the policy terms.
- Common perils such as handling damage, accidents and certain natural events.
- Cover levels vary; all-risk policies are broader than named-perils policies.