Global Marine Industry

Types Of

Cargo Insurance

Cargo insurance protects the freight/goods being transported. Whether it is consumer products, industrial materials, or crude oil, the cargo insurance helps mitigate financial loss if the cargo is damaged, lost or delayed during transit.

Coverage

Hull Coverage

Hull insurance covers the physical damage to the vessel. This coverage includes collisions, fires and mechanical failures. Given the high value to commercial ships, hull insurance is essential for vessel owners.

Protection & Indemnity (P&I)

P&I insurance covers third-party liabilities. This can include environmental damage, injury or death of crew members, and damage to other vessels or property. These policies are typically provided by specialized mutual insurers known as P&I clubs.

War Risk Insurance

Standard marine insurance policies typically exclude high-risk events related to conflict, seizure, or extreme political instability. To cover these exposures, insurers offer separate “war risk” policies.

War risk insurance applies when vessels operate in regions where threats are elevated. This can include situations where a ship is seized or held by authorities, damaged by military or hostile activity, or prevented from completing a voyage due to safety concerns.

Unlike standard coverage, war risk insurance is highly responsive to changing conditions. As risk levels shift, pricing can increase quickly, coverage may be restricted, and insurers may reassess each trip individually based on current conditions.

This responsiveness is necessary given the nature of these risks, but it also creates uncertainty for shipowners and operators. Costs can change with little notice, and coverage that is available one day may be limited or unavailable the next. If coverage becomes unavailable, ships may not be able to operate at all, reducing the movement of goods and disrupting global trade.