Marine Cargo Insurance

Why carrier liability is not enough

Ocean, air and road carriers are only liable for cargo loss or damage up to limits set by international conventions such as the Hague-Visby Rules or the Montreal Convention, and those limits are calculated per kilogram or per package, not by the actual value of the goods. A container of machinery worth £80,000 might attract carrier liability of only a few thousand pounds if it is lost overboard, leaving the owner to absorb the rest.

Marine cargo insurance is arranged separately from the freight contract specifically to close this gap, providing cover based on the real declared value of the goods rather than a liability formula designed to limit the carrier's exposure.

What all-risks cover actually includes

An all-risks policy covers loss or damage from an accidental external cause during transit — this includes things like dropping, water ingress, theft, collision and fire, but it does not cover inherent vice (the goods' own tendency to deteriorate), inadequate packing, or loss arising from a delay itself rather than a physical event. War and strikes cover is usually a separate clause added where the route or destination carries that risk.

Cover typically runs warehouse-to-warehouse, meaning from the moment goods leave the shipper's premises until they are delivered to the final address, covering every leg of a multi-modal journey rather than just the sea or air crossing.

• Accidental loss, damage, theft and collision
• Fire and water damage in transit
• Handling and loading damage
• War and strikes clauses where the route requires them

Declaring value correctly

The insured value should be the full replacement cost of the goods including freight and, where relevant, duty — not just the invoice price of the goods alone. Under-declaring value to save a small amount of premium is a common mistake, because most policies apply average, meaning a claim is paid only in the same proportion as the goods were insured relative to their true value.

For personal effects and household removals, an honest inventory value including replacement cost of items rather than sentimental or original purchase price is what the insurer will actually use to assess a claim.

Single shipment versus annual open policies

A single shipment certificate suits anyone moving cargo occasionally — a one-off vehicle export, a single container of household effects or a single machinery movement. An annual open policy suits businesses shipping regularly, since it removes the need to arrange a certificate for every consignment and usually reduces the effective rate per shipment.

We help decide which structure fits based on shipment frequency, because an open policy arranged for a business that ships twice a year rarely pays for itself compared with individual certificates.

Making a claim

If cargo arrives damaged or is found short, the first step is to note it on the delivery paperwork at the point of receipt — an unqualified signature for receipt in good order makes a later claim much harder to support. Photographs of the damage and the packaging, and where relevant a survey report, are then submitted alongside the claim form.

We support the claims process by liaising with the insurer, arranging a surveyor where the loss is significant, and making sure the paperwork trail from booking through to delivery is complete and consistent, since gaps in that trail are the most common reason a claim is delayed or reduced.

What we handle and what you supply

We assess the right cover level, place the policy or certificate with the insurer, confirm the wording matches the mode and route, and support any claim from notification through to settlement. You supply an honest declared value, an accurate description of the goods, and prompt notification of any damage discovered on delivery.

For fragile or high-value cargo we also advise on packaging standards before shipment, since a policy will not respond to damage that resulted from inadequate packing rather than an insured event.