Does Marine Insurance Only Cover Water-Related Damages? Let's Clear the Myth

Exploring the scope of marine insurance: Understanding coverage beyond water-related damages with BTW Financial Services.

Misconception: Marine Insurance = Sea-Only Coverage

The word “marine” gives the impression that this insurance is only valid during sea voyages. This is far from accurate. While marine insurance originated to protect goods at sea, it has now evolved to cover a wide variety of risks across multimodal transport systems.

What Marine Insurance Really Covers

1. Land Transit Risks If your goods are being moved via truck or train before or after reaching the port, they are still covered — provided your policy includes warehouse-to-warehouse coverage.

2. Air Freight Coverage Air shipment leg of cargo transit can also be insured under marine insurance if the policy is structured as multimodal or combined transport.

3. Loading and Unloading Hazards Damages that occur during the loading at origin or unloading at the final destination are covered — this includes mishandling, crane failure, or manual damage.

4. Storage Risks (Short-Term) Temporary warehousing at transit hubs or customs yards is covered under many marine insurance plans, depending on the terms and duration.

5. Third-Party Liability If your cargo or shipping operations cause damage to another person’s property or result in injury during transit, marine insurance can protect you from legal and compensation liabilities.

6. Natural Calamities & Human Threats Coverage includes perils like fire, floods, cyclones, piracy, and even acts of war or terrorism under extended clauses like Institute Cargo Clauses A.

Why This Misconception Is Risky

Assuming marine insurance is for "sea travel only" can lead businesses to skip protection for road or air segments — leaving shipments vulnerable to uninsured losses. In global trade, this mistake can be costly.

How to Ensure Complete Coverage

• Choose the Right Clause: ICC-A (Institute Cargo Clause A) offers the broadest protection.

• Specify Multimodal Transit: Declare all modes of transport used.

• Opt for Warehouse-to-Warehouse Cover: Ensures start-to-end security.

• Discuss Extensions with Your Provider: Include storage, handling, or delay covers if needed.

 Marine insurance is not just for sea cargo — it's for every part of your cargo's journey. From factory to final delivery point, comprehensive marine insurance can protect you against the unexpected.

If you're relying only on water-related coverage, you may be missing out on full protection.

Get your marine insurance reviewed today.