Marine Cargo Insurance

Definition - What does Marine Cargo Insurance mean?

A marine cargo insurance (also known as a voyage policy) refers to a marine policy that covers the goods transported by a sea vessel. It does not cover the vessel itself, although the insurer evaluates the vessel and the crew for safety and competence, respectively, before issuing such a policy.

Insuranceopedia explains Marine Cargo Insurance

A voyage policy is often bought by exporters to give them financial protection when an unlikely catastrophic event does damage or causes loss to the cargo in a sea voyage. This policy covers one trip or voyage only.

This policy has a number of inclusions. Among them are damage caused by crew misconduct and damage due to bad packaging. A cursory glance at the exclusions will show that the policy does not cover preventable risks. To cover those, an insured will need to purchase a separate insurance policy.

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