Coverage Details (What This Insurance Covers)
Insurance policies for containerized goods cover goods and products that are inside a standard shipping container.
You can see a sample policy here.
Below is a summary of the policy coverage.
This insurance applies to household goods and personal effects shipped internationally. It begins:
- When the goods leave the warehouse at the origin
- Continues through ocean transport and any standard stops/transfers
- Ends when goods are delivered to the final warehouse, or:
- 15 days after being unloaded at the destination port (or 30 days if the warehouse is outside port limits)
Two Coverage Scenarios:
- Goods shipped on deck (declared as such)
Limited coverage: “Free of Particular Average” (FPA) – only major losses like fire, sinking, or jettison are covered. - Goods not shipped on deck (or stowed below deck)
All-risk coverage: Includes most physical losses or damage from outside forces (with exclusions listed below).
Losses That Are Covered
General Marine Risks (both on-deck and under-deck):
- Fire
- Sinking or stranding of the vessel
- Collision with another object
- Jettison or washing overboard
For Goods Not On Deck (All-Risk Coverage)
- Physical loss or damage from external causes (e.g., breakage due to accident)
- Damage from:
Lightning
Earthquakes, floods, cyclones, or tornados
Land transportation accidents (collision, fire, derailment) - Coverage during normal transit, including temporary stops
Other Included Protections
- General average and salvage charges
- Explosion, machinery breakdown, damage in warehouse (under Marine Extensions Clause)
- Inchmaree Clause: Covers crew negligence and certain technical failures
- “Sue and labor”: Costs to protect or recover goods after an incident
Losses That Are Not Covered
Always Excluded (Unless Bought Separately):
- War risks (e.g., seizure, hostilities, nuclear events)
- Strikes, riots, civil unrest, vandalism, and terrorism
- Anything that would violate U.S. government trade sanctions (e.g., OFAC violations)
Exclusions for Both On-Deck and Under-Deck Cargo:
Losses caused by:
- Scratching, chipping, marring, or breakage
- Leakage or deterioration
- Unless these were caused by a major incident (e.g., sinking, fire)
Delay-Related Exclusions:
- Loss due to delay (even if caused by a covered risk)
- Loss of market value due to late delivery
On-Deck Specific Limitation:
- “Free of Particular Average” means no payment unless damage is caused by major perils (fire, sinking, etc.)
Claims Notes & Important Conditions
- You must report any loss or damage immediately to the insurer or their representative.
- Keep proof of loss: delivery receipts, survey reports, bills of lading, and invoices.
- Claims must be filed within 1 year of the loss.
- A deductible of 1% of the insured value applies, with a minimum of $250 per claim.