Ocean cargo insurance, also known as marine cargo insurance, provides coverage for a wide range of risks and perils that can affect cargo during its transportation by sea. While the specific terms and conditions of coverage can vary between policies, ocean cargo insurance typically covers the following:

  1. Loss or Damage: Ocean cargo insurance covers losses or physical damage to the insured cargo. This includes damage caused by accidents, handling, and various maritime perils.
  2. Theft and Pilferage: Coverage extends to theft and pilferage of the cargo during transit, which can occur during loading, unloading, or while in transit.
  3. Fire Damage: Damage to the cargo resulting from fires on the vessel or at the port is generally covered.
  4. Accidents and Collisions: Ocean cargo insurance protects against losses or damage caused by accidents such as vessel collisions, grounding, and sinking.
  5. Extreme Weather: Damage due to extreme weather conditions, such as storms, hurricanes, and rough seas, is typically covered.
  6. General Average and Salvage Charges: Costs incurred in situations involving general average or salvage efforts are usually covered. General average is a principle in marine insurance where all parties involved proportionally share the losses incurred to save the ship and cargo from common maritime perils. “With Average” coverage may apply to particular average losses.
  7. Improper Stowage and Handling: Damage resulting from improper stowage or handling of the cargo during loading and unloading is often covered.
  8. Acts of War or Piracy: Many policies include coverage for losses resulting from acts of war, piracy, or malicious acts. However, these risks may require special war risk coverage.

It’s important to note that the exact terms of coverage can vary from one insurance policy to another. Some policies may include additional protections or endorsements, such as coverage for high-value items, perishable goods, and other specific needs. Conversely, certain perils, like war risks or acts of terrorism, may be excluded or require separate insurance coverage.

To get a comprehensive understanding of what a specific ocean cargo insurance policy covers, cargo owners should thoroughly review their policy documents, including any endorsements or riders, and consult with their insurance provider or broker. Tailoring the policy to the specific needs of the cargo being shipped and understanding the policy’s terms and exclusions is crucial to ensuring that the cargo is adequately protected during its journey by sea.