Marine cargo insurance

Marine Cargo insurance is a type of insurance cover that is designed to provide protection against the loss or physical damage to goods that are being transported in the UK or internationally by sea, rail, air and land. It can provide protection for raw materials or finished products when they are in transit in your own vehicle or a third party vehicle.

Although the name suggests that the cover is to protect sea cargo this could be misleading. It actually covers freight transported by ship, train, truck or aeroplane. It could also include cover for damage to goods when stored at a premises or in storage in the UK.

Businesses who import, export or manufacture goods are likely to require cargo insurance. Just some of the business types this policy could protect are:

• Manufacturers
• Wholesalers
• Retailers
• Distributers
• Suppliers
• Agents
• Market traders
• Technology companies

Marine Cargo insurance can by purchased to cover the transit of raw materials, single components and finished products.

Typically the policy provides protection for:

• Physical loss or damage to goods being transported in the UK or internationally
• War and terrorism cover is usually provided as standard
• The policy will cover the entire journey of the goods, from the seller to the end receiver
• You could add additional cover to protect the goods held in warehouse storage until the end destination is reached
• It could cover your annual shipment requirements or you could purchase cover when needed for a single trip

The cost of cover will depend on a variety of factors, for instance, the type of goods you are looking to cover, the journey routes, the transportation type, if you require additional cover to protect when the goods are in storage, if it’s a single trip policy or annual cover. Like any other insurance, generally the more cover you require the higher the premium.

The value you gain from having the right cover in place is a huge benefit to protect your business activities. A cargo insurance policy is a product that you have paid for that you may never get to use but also a product that you hope you will never need to call on.