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Marine Freight Cargo
If you regularly have goods in transit, even if they never go near the sea, keep reading! Confusingly, Marine Cargo policies insure property as it moves from Point A to Point B by sea, but also air, rail and road. The misleading title stems from the 1906 Marine Insurance Act which, as the name suggests, focused on ‘maritime perils’ and ‘marine losses’.
Standard cover includes:
Property
Contents
Business Interruption
Public Liability
Employers Liability
INSURANCE
Marine Cargo policy
By sea, air or land
Marine Cargo insurance is much broader now and covers your merchandise against damage or loss arising from transit in the air, on sea and subsequently over land or inland waterways. Policies can cover a single mode of transport or a combination, depending on the journey to be taken by your goods. The critical element is the ‘peril’ that each mode of travel carries. So your Marine Cargo policy might specify that you are covered for derailment, crashing, piracy, or all three, and many more besides.
Who has the ‘insurable interest’?
Another key consideration is who has the ‘insurable interest’ in any goods insured. This can be complicated. Someone selling goods will retain ownership until they have received payment from their buyer. If this happens during transit, for example after the cargo has docked at its destination port but before it is unloaded, the policy must cover both parties.
This is unlike other property insurances where ownership remains the same throughout. Marine policies have to be more flexible, allowing for ownership to change as goods are bought and sold, sometimes before their journey is completed.