Marine cargo insurance covers the risks of loss, damage, expense and liability to your goods during transportation as cargo from one place to another place. The process of transportation includes airfreight, ocean
freight and overland carriage. The marine cargo insurance is to indemnify the cargo owners and/or the financiers such as banks against financial loss arising as a result of physical loss, damage, expenses incurred or liability from the transportation process.
Loss can arise from the perils of the sea such as rough weather, sinking, the ports or as a result of overturning, collision of and/or theft from overland transports.
Who Needs Ocean Cargo Coverage?
Just about every enterprise that imports or exports raw materials or sells finished products abroad needs ocean cargo insurance. These include:
- Logistics Providers
- Commodity Traders
- Customhouse Brokers
- Freight forwarders
- Steamship Lines
- Air Carriers
The ocean cargo policy automatically covers goods shipped by water or air, depending on the terms of sale, from the warehouse at the point of shipment to the warehouse at the point of destination, including all intermediate transit by rail or truck. While All Risks coverage is available, the basic ocean cargo policy covers perils of the sea such as stranding, sinking, fire and collision, as well as perils on the sea including heavy weather and theft.