Marine Cargo
from FML

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Marine Cargo Insurance

Marine Cargo Insurance

Arranging insurance for cargo all over the world. Cargo insurance will cover Shipments and cargo of any size and description can be covered and we also have an excellent claim handling department should you assistance when making a claim.

If your business relies on any form of physical products at some point in time you will require some form of cargo insurance. Regardless of what you may have been told, it is always worth checking with your broker to make sure you are covered correctly, as the old saying goes it is better to be safe than sorry.

You have already instructed your broker to arrange a commercial combined policy for you, that policy covers your premises for the storage of goods and also it covers your distribution, do you need anything else? Well, yes you do. Many businesses just like yours hand over the protection of those goods to a third party such as a freight forwarder.

You’re waiting for the inevitable “but” and there is one, it includes some added risks for you when handling the insurance of goods this way and there are some benefits for you if you take full control over the insurance yourself. As is the case for anyone purchasing insurance it is always worth speaking to a broker that understands and specialises in your industry, someone that can simplify the language in such a way that allows you the benefit of making an informed choice.

Marine cargo insurance explained?

Also called freight insurance or goods in transit insurance covers physical loss or damage to goods during transit. A marine cargo insurance policy will normally cover all risks with some set exclusions.

Typical cargo freight exclusions are:

  • Geographical Exclusions such as higher than normal risks of war or terrorism, countries where there may be trade sanctions in place, inland journey’s where the risk of theft is unacceptable for example some African landlocked countries. Some countries require buyers to insure via local markets or state insurance corporations.
  • Goods Exclusions such as items banned for international trade, high-risk items such as certain chemicals or arms and weaponry, sometimes there may be exclusions concerning foodstuffs or biological freight due to restrictions in particular countries.

The following list of goods are excluded unless in orange those you will need to make your broker aware of

  • Mobile Phones
  • Bullion, precious metals, diamonds, precious stones and the like
  • Cash, bank notes, treasury notes, stamps, bonds, securities and the like
  • Jewellery, watches and the like
  • Tobacco, cigarettes and cigars
  • Livestock
  • Microchips and SIMMS/DIMMS and similar
  • Drugs pharmaceuticals and medicines
  • Fresh meat, fish, vegetables and/or perishable foods of whatsoever nature

Your broker will inform you of the specific exclusions that apply to your cargo insurance policy.

There are a few restrictions when it comes to the type of goods being transported. Very few exclusions are inherent on a typical marine transit insurance for household goods. As an example, the goods may be worth £100,000 and the owner has them covered for that. However, the limit of liability may be for 2 million so if the goods were lost and this caused the owner extra expense outside the value of the goods the freight forwarder would be covered.

Freight forwarder insurance requirements

Is there a difference between cargo insurance and freight insurance? No, they are just different terms used to describe the policy that will cover your goods. There are, however, different types of cargo insurance which your broker will correctly inform you of and should you have any specific requirements or questions do not hesitate to ask.

Understanding the difference between insurance and liability is key here, the owner of the goods will have them insured for a value however the forwarder or carrier will have insurance for their level of liability.

Talk to a professional Transit Insurance broker

Our specialist marine cargo insurance brokers are a small dedicated team with a wealth of experience in handling all types of cargo insurance requirements. We arrange cargo insurance quotes for many Freight forwarders and carriers worldwide as long as they have a base of operations here in the UK.


Contact Details

  • Telephone: 01702 225 440

  • fmlenquiries

  • Primo plc, Cumberland House, Baxter Ave

  • Southend-on-Sea, Essex SS2 6HZ