Marine Cargo Insurance

What Does Marine Cargo Insurance Mean?

Marine cargo insurance is a sub-branch of marine insurance and a type of property insurance that covers the loss or damage of goods or cargo during sea transit. It is one of several types of commercial marine insurance, which also includes hull insurance and liability coverage for vessel operators.

Insuranceopedia Explains Marine Cargo Insurance

Marine cargo insurance offers varying levels of coverage depending on the type of cargo or goods being transported, which can range from frozen meat and food to dry goods like cotton, coffee, refined sugar, and tea, as well as commodities like oil, jute, and coal. The extent of coverage can protect against several risks, including but not limited to fire, capture, war, piracy, jettison, and theft.

The Institute Cargo Clauses, a set of standardized terms adopted by many international marine insurers, typically outline the scope of coverage. These clauses are categorized as A, B, or C, with Clause A providing the most comprehensive coverage and Clause C offering the least. Businesses that ship goods domestically by truck or rail rather than by sea may need freight insurance instead, since marine cargo policies generally apply only to ocean shipments.