Top 5 Marine Insurance Claims in Shipping & How to Avoid Them

• Top Five Marine Insurance Claims You Should Know About

1. Cargo Damage from Rough Handling

How to Prevent It:

2. Water Intrusion from Weather or Containers

How to Prevent It:

3. Theft and Piracy

How to Prevent It:

4. Delays Due to Port Disruptions and Strikes

How to Prevent It:

5. Container Loss at Sea

How to Prevent It:

• References & Industry Insights

• Sources: 

• Final Thought

Top Five Marine Insurance Claims You Should Know About

Shipping cargo worldwide comes with inherent risks weather challenges, rough handling, port delays, and even piracy. While marine insurance offers robust protection, being aware of the most common claims can help businesses prevent costly losses. Here are the top five marine insurance claims made by exporters, logistics providers, and importers globally and tips for avoiding them:

1. Cargo Damage from Rough Handling

The most frequent marine insurance claim arises when goods get damaged during loading, unloading, or transit. Poor handling—such as crane drops or improper stacking—can seriously harm fragile items, especially those inadequately packed.

How to Prevent It:

• Wrap goods in shock-absorbing materials and use sturdy pallets.

• Clearly mark fragile items and follow ISPM-15 packaging rules.

• Employ trained handlers and secure cargo with proper lashing techniques.

  
  

2. Water Intrusion from Weather or Containers

Exposure to sea spray, heavy rain, or container leaks can wreck shipments, particularly over long voyages. Even minor container damage may cost thousands in ruined goods.

How to Prevent It:

• Use waterproof packaging for sensitive items like electronics and textiles.

• Request waterproof or sealed containers.

• Whenever possible, avoid shipping during known storm or monsoon seasons.

3. Theft and Piracy

Theft including piracy is a growing threat in key maritime corridors across Africa, Southeast Asia, and Latin America. Criminals often target high-value shipments, making cargo theft a serious concern.

How to Prevent It:

• Avoid high-risk zones or include security escorts.

• Fit containers with GPS trackers.

• Partner with carriers who use anti-piracy protocols and cover theft robustly in their policies.

Data from insurers like AGCS confirm that theft is among the top three most common marine cargo claims.

4. Delays Due to Port Disruptions and Strikes

Scheduling and contractual penalties can pile up when shipments are stalled by port strikes, customs holdups, or local disturbances. These disruptions can lead to financial injury and claims.

How to Prevent It:

• Monitor port and customs updates before dispatching goods.

• Favor ports known for reliability and minimal downtime.

• Choose policies that include delay-in-transit coverage.

  
  

5. Container Loss at Sea

While rarer, losing a container overboard due to rough seas, poor lashing, or an unstable vessel results in major financial loss and a full claim.

How to Prevent It:

• Ensure shippers adhere to IMO stowage standards.

• Use smart containers with weight sensors or stability indicators.

• Always opt for full container loss coverage in your insurance policy.

📚References & Industry Insights

• Physical damage to cargo is the most frequent type of marine insurance claim, often due to handling or packing flaws.

• Theft and piracy rank among the top three causes of claims internationally .

• Weather-related container loss at sea and delays from port disruptions are also significant contributors to claim costs.

  
  

Sources: 

International Union of Marine Insurance (IUMI)  

Allianz Global Risk Report – Marine Claims  

📝Final Thought

Even the best-prepared businesses may face unexpected losses. Understanding the top marine insurance claims helps you take preventive measures and assures peace of mind. With the right policy from you're not just insured you’re prepared.