Home / Logistics Knowledge / FCL Marine Cargo Insurance: Do You Need It?
Carriers limit their liability to a small amount per package. Marine cargo insurance is what actually protects the value of your goods in transit.
Under international rules such as Hague-Visby, a carrier's liability per package or unit is low. For most cargo, that limit is far below the goods' value, so a loss leaves you largely unprotected unless you insure.
Institute Cargo Clauses define the standard covers. All Risks is the broadest, covering most physical loss or damage except listed exclusions. With Particular Average (WA) is narrower and excludes minor losses. Choose the cover that matches your cargo's risk.
A good policy covers the transit from the warehouse at origin to the warehouse at destination, not just the ocean leg. Confirm the cover starts when the cargo leaves the supplier and ends at your door.
Under CIF the seller arranges and pays for insurance, but the buyer is the beneficiary. Under CFR or FOB the buyer arranges transport and should buy insurance, since risk passes to the buyer at shipment even though the seller books the vessel.
No, unless the price is CIF. Otherwise insurance is arranged separately, usually by the buyer.
All Risks is broader and covers most physical loss; WA excludes minor and partial losses. Pick All Risks for higher-value or fragile cargo.
The buyer, because risk transfers at shipment while the seller only books the vessel. The buyer needs cover from that point.
Notify the insurer or surveyor quickly, keep all shipping documents and photos, get a survey if needed, and file within the policy limit.
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