What are the different types of shipping insurance coverage?
All-Risk
An all-risk cargo insurance policy will cover any physical loss/damage from
any external cause. An all-risk policy will list any exclusions that are not covered,
which can be added on to the policy as an additional clause.
TRG Marine™ only writes all-risk annual policies because of the many
benefits.
Named Perils
Named perils policies will list what is covered under the policy. These policies will
not cover
theft!
- Free of Particular Average (FPA) - Covers stranding, sinking, burning,
collision, fire, lightning, crash.
- With Average (WA) - This is not a common type of policy anymore. It
covers stranding, sinking, burning, collisions, heavy weather, fire, lightning,
crashing.
Shipment - by - Shipment (Through a carrier)
If you are insuring your goods shipment-by-shipment, you are most likely not covered
for:
- Acts of God - e.g. heavy weather, earthquake, lightning, etc
- Acts of war - acts of strikes, riots or civil commotions
- Latent defects in the hull or machinery
- Criminal acts or negligence by the master or crew
- Unseaworthiness of the vessel
C+I+F
Seller owns the goods until they are loaded onto the vessel. Selling price includes
all costs so far, plus the costs of the
cargo insurance.
Learn about Terms of Sale (INCOTERMS)
DON'T RELY ON YOUR CARRIER
A carrier’s insurance does not
cover you. Their liability is
insured, but they limit their liability
by contract.
Make sure to double check the
contract. You may find these
limitations…
Ocean Carrier:
$500 per package or customary
freight unit
International Air Carrier:
$9.07 per lb. or $20 per kilo
Domestic Air Carrier:
$0.50 per lb.