Reference
Marine cargo insurance explained
A cargo policy pays for goods that are lost or damaged in transit. It does not pay for the goods being late, and it does not pay the port charges that lateness generates. Knowing exactly where that line sits is the difference between a programme that works and an invoice nobody is covering.
What the cover grades actually mean
All-risks
Institute Cargo Clauses (A)Physical loss or damage from any external cause, subject to the named exclusions. The widest cover ordinarily written on containerised cargo.
Watch: Still excludes inherent vice, insufficient packing, ordinary leakage, delay and loss of market.
Named perils — wide
Institute Cargo Clauses (B)Fire, explosion, stranding, sinking, collision, general average sacrifice, jettison, washing overboard, water ingress into the hold or container, and total loss of a package during loading or discharge.
Watch: Cheaper than (A), but the burden is on you to show the loss came from a listed peril.
Named perils — restricted
Institute Cargo Clauses (C)Major casualty perils only: fire, explosion, stranding, sinking, collision, general average sacrifice and jettison.
Watch: No cover for water damage, washing overboard or theft. Usually only appropriate for low-value bulk.
Open cover
Annual policy with declarationsA standing policy that automatically attaches to every shipment you declare, with an agreed limit per conveyance and per location.
Watch: The normal structure once you ship regularly. Certificates are issued per shipment for banks and buyers.
Single-shipment certificate
One-off coverCover for one named shipment, from named origin to named destination.
Watch: Priced at a higher rate than open cover. Sensible for an occasional high-value move, expensive as a habit.
What drives the premium
| Commodity | Target goods (electronics, pharma, branded apparel, spirits) and fragile or temperature-sensitive cargo attract the highest rates. Machinery and packaged industrial goods sit at the bottom. |
| Insured value | The rate is quoted per 100 of insured value, so the value formula matters as much as the rate. The market convention is CIF plus 10%. |
| Route and transhipment | Direct port pairs price better than routings with transhipment, feeder legs or long inland drayage. War and strikes cover is rated separately for listed areas. |
| Conveyance and packing | FCL under deck prices better than LCL or on-deck carriage. Documented export packing and container seals reduce theft and handling loss rating. |
| Loss history | Three clean years is the strongest lever you have. A single large claim inside the last three years typically moves the rate more than the commodity does. |
| Deductible | Raising the per-shipment deductible lowers the rate. Beyond a point it just moves small losses onto you without moving the premium much. |
For rate bands, worked examples and an indicative estimator, see how much cargo insurance costs.
What a cargo policy does not cover
Delay, and any loss caused by delay
Excluded by the Institute Cargo Clauses in all three grades, even where the delay itself is caused by an insured peril. This is the single biggest gap on a container programme.
Demurrage, detention and storage charges
These are contractual charges from the carrier or terminal, not physical loss or damage to the cargo, so a cargo policy does not respond to them.
Insufficient packing and inherent vice
Treated as your own act or the nature of the goods rather than an external casualty.
Loss of market and consequential loss
A missed selling season or a cancelled order is economic loss, not damage. It sits outside the policy.
War, strikes and terrorism unless bought back
Written back by separate clauses at an additional rate, with listed areas excluded or surcharged.
Cargo policy, Sellexio Guard, or neither
| Cargo policy | Sellexio Guard | Neither | |
|---|---|---|---|
| Responds to | Physical loss or damage in transit | Demurrage, detention and reefer power charges that stop your cargo | Nothing |
| Delay charges | Excluded, always | Paid out of your funded pool the day they land | Paid by you, in full, on the carrier’s timetable |
| General average | Insurer provides the GA guarantee | GA deposit posted from the pool against a release fee | Cash deposit posted by you before release |
| Who carries it | The approved maritime insurance partner underwrites | Sellexio operates the pool — a liquidity service, not a policy | — |
| Starts when | The first premium payment clears | The first payment clears and the pool is funded | — |
Guard is an operational liquidity service, not an insurance product. Sellexio does not underwrite risk. How the Guard pool works.
Cargo insurance FAQ
What is marine cargo insurance?
Marine cargo insurance covers physical loss or damage to goods while they are in transit by sea, air, road or rail, including while in temporary storage on the way. It is bought by the party that carries the risk under the Incoterm — usually the buyer on FOB and the seller on CIF.
Is marine cargo insurance mandatory?
It is not required by law in most jurisdictions, but it is routinely required by contract: CIF and CIP sales oblige the seller to insure, letters of credit require a certificate, and many financing agreements require cover as a condition of drawdown.
Does the carrier not already cover my cargo?
Carrier liability is limited by convention and is not insurance. Under the Hague-Visby Rules the ceiling is roughly 2 SDR per kilo or 666.67 SDR per package, whichever is higher, and the carrier can defend the claim. On a full container of high-value goods this typically recovers a small fraction of the loss.
Does cargo insurance cover demurrage or detention?
No. Cargo policies respond to physical loss or damage, and they exclude delay expressly. Port charges caused by congestion, a customs hold or a missed appointment are outside the policy — that exposure is what Sellexio Guard and freight recovery address.
What is general average and why does insurance matter?
When a ship sacrifices cargo or incurs extraordinary expense to save the voyage, every cargo owner contributes in proportion to value, and the carrier holds your container until security is posted. A cargo policy provides the GA guarantee; without one you must post a cash deposit before your cargo is released.
Who arranges the policy — Sellexio?
No. Sellexio does not underwrite or bind cover. We publish this reference, and we introduce you to the maritime insurance partner we have approved for placement. Any cover is between you and that insurer, and it starts only once the first payment has cleared.
Request a placement introduction
Tell us what you ship and where. We pass it to the maritime insurance partner we have approved, who quotes and underwrites. Sellexio does not issue or bind cover.