Maritime transport

Maritime transport is one of the most widely used modes of transport in the world: according to data from the United Nations Conference on Trade and Development (UNCTAD), more than 90% of world trade is carried by sea. It is a very efficient and safe means of transport, but it also carries certain risks. For this reason, having marine cargo insurance is essential to protect the cargo and minimise risks.

What are the most important covers?

The most important covers in marine cargo insurance are the following:

1. 1. Transport cover: covers the damage and loss the cargo may suffer during sea transport.
   2. Liability cover: covers the damage the cargo may cause to third parties during sea transport.
   3. War and terrorism cover: covers damage that may result from acts of war or terrorism.
   4. Strikes and riots cover: covers damage that may result from strikes or riots affecting sea transport.

What types of marine cargo insurance are there?

There are several types of marine cargo insurance. The most common are:

1. 1. All-risks insurance: covers all damage and loss the cargo may suffer during sea transport, except for the specific exclusions set out in the policy.
   2. Insurance with excess: covers the damage and loss the cargo may suffer during sea transport, but the insured must bear part of the risk, as set out in the policy.
   3. Liability insurance: covers the damage the cargo may cause to third parties during sea transport.

Marine cargo policies, like transport policies in general, can also be classified into three types:

1. 1. Declaration-based insurance: this type of insurance is used by companies that make shipments sporadically. Instead of taking out insurance for each shipment, a declaration-based policy is taken out that covers all shipments made in a given period. In this way, the company can save on insurance costs.
   2. Turnover-based insurance: this type of insurance is used by companies that ship regularly and have a high turnover. Instead of taking out insurance for each shipment, a turnover-based policy is taken out that covers all shipments made during a given period, usually one year. The cost of the insurance is based on the company’s turnover.
   3. Floating policy: this type of insurance is used by companies that ship regularly and have a fleet of vessels or containers. Instead of taking out insurance for each vessel or container, a floating policy is taken out that covers all shipments made with that fleet during a given period. The cost of the insurance is based on the size of the fleet.

It is important to stress that, whichever type of insurance is chosen, you must carefully review the policy conditions and make sure it adequately covers the company’s needs. It is also important to have an insurance broker specialised in maritime transport who can advise on choosing the most suitable type of insurance and on handling any claims.