Marine Transit Insurance

Marine insurance is a type of insurance that provides coverage for aspects including but not limited to:

• Ships
• Boats
• Other watercraft
• Cargo
• Other marine-related risks

Shipowners, cargo owners, and other stakeholders in the maritime industry will get financial protection against losses or damages that may occur during sea voyages.

The typical risks associated with shipping that you’ll get cover for include damage to the vessel, damage or loss of cargo, and liability for injuries or damages to third parties. We can also tailor your policy to include additional coverage, such as protection against piracy, war risks, or natural disasters.

Because of the unique nature of this industry, marine insurance policies are typically issued by specialised insurers, known as marine insurers or P&I clubs. Cover can be customised to meet the specific needs of individual clients. Thanks to the marine insurance experts on the McKenzie Ross team, we understand your business and unique concerns, and can help get you the cover you need.

The cost of marine insurance varies depending on the nature and extent of cover you require. The level of risk associated with the voyage or cargo being insured also affects insurance premiums.

Marine cargo insurance covers the loss or damage to goods or merchandise being transported by sea, but can also be relevant when it’s carried by air or land.  As a cargo owner, you’ll have financial protection against a variety of possible risks, such as:

1. Fire or explosion
2. Theft or pilferage
3. Jettison or washing overboard
4. General average (sacrifice of some cargo to save the vessel)
5. Natural disasters such as storms, hurricanes, and earthquakes
6. Collision or grounding of the vessel
7. Improper packing or handling of the cargo

At McKenzie Ross we pride ourselves on providing custom solutions. This means your insurance policy will suit your specific needs as cargo owner. For over 20 years we’ve helped clients obtain relevant policies, after considering aspects like:

• Type of goods
• Destination
• Mode of transport
• Value of the cargo

With marine experts on our team, we can help you make the best decisions for your cargo and your business.

Your coverage can be for a single shipment or multiple shipments over a specified period.

You can pick from various types of marine cargo insurance policies, based on your needs. Each option has different levels of coverage and the experts at McKenzie Ross can help identify the cover most appropriate for you.

The main types of marine cargo insurance include:

1. Voyage Policy: This policy provides coverage for a single shipment from one port to another. The coverage starts when the cargo is loaded onto the vessel and ends when it is discharged at the final destination.
2. Time Policy: You’ll receive coverage for multiple shipments during a specific period, usually one year. The policy covers all shipments made by the policyholder during that time.
3. Open Cover: This option is ideal for companies that transport goods regularly, since you’ll have cover for an indefinite period. As the policyholder you can declare the value of the cargo shipped periodically and pay the premium accordingly.
4. Named Perils Policy: Policyholders obtain coverage only for specific risks or perils that are named in the policy, such as fire, theft, or collision.
5. All Risk Policy: Your policy will cover all risks of loss or damage to the cargo, except for those specifically stated to be excluded.
6. Frustration of Adventure Policy: You can obtain coverage for situations where the shipment cannot be delivered to the intended destination due to unforeseeable circumstances, such as war, piracy, or a natural disaster. The policy covers losses and damages, but also expenses incurred in trying to recover the cargo.

When our brokers help you identify the best policy for your needs, we’ll discuss details such as your specific needs as cargo owner, the frequency and nature of your shipments, and the level of risk you’re willing to assume.

Marine insurance is not always mandatory or legally required but if you own or operate a vessel or transport goods by sea, air or land, it’s strongly recommended, since it may be required in certain situations:

• Most countries require ships to have certain types of insurance to operate in their waters.
• Some ports may require ships to have liability insurance before they can enter.
• Many transportation contracts require parties to have insurance in place to cover the risks associated with the transport of goods.

Without insurance, cargo damage or complete loss can result in significant financial losses. Rather give yourself peace of mind and financial protection against unexpected risks and events. Our team of marine brokers will help customise the ideal policy and with specialised claims management we can help obtain the best possible outcome should something go wrong.

Your marine insurance policy with McKenzie Ross will protect your assets and liabilities in the following ways:

1. Protection against financial losses: You’ll have financial protection against losses or damages to ships, cargo, and other marine-related assets during transport or while in the custody of the owner or operator.
2. Peace of mind: With insurance in place to cover unexpected risks and events, cargo owners, shipowners, and other parties involved in marine-related activities can have peace of mind.
3. Maintain the flow of commerce: You can have a financial safety net in the event of losses or damages to transported goods. This is how we help your business take risks and transport goods to new markets without fear of significant financial losses.
4. Possible legal requirement: Marine insurance may be required by law, regulation, or contract in certain situations, making it an essential component of the marine industry.
5. Customised to meet your needs: McKenzie Ross can help you find a marine insurance policy that can be customised to suit your specific needs, including the type of goods being transported, the mode of transport, and the value of the cargo.

Yes, marine insurance can cover air freight as well as sea and land transportation.

We understand that air freight is a popular mode of transportation for high-value or time-sensitive goods due to its speed and efficiency. However, it carries risks such as damage, theft, and loss, which can result in financial losses. Luckily, your marine insurance can provide coverage, giving you more peace of mind.

Do note that coverage and premium rates for marine insurance for air freight may differ from those for sea or land transport due to differences in risk exposure and insurance requirements. When you talk to our expert marine brokers, they’ll be able to help determine the appropriate coverage and premium rates for your specific air freight needs.

The cost of marine cargo insurance can vary widely depending on factors such as, but not limited to:

• Type of goods being transported
• Value of the cargo
• Mode of transportation
• Distance covered
• Route taken
• Duration of the voyage
• Specific risks involved

Your premium will typically be a percentage of the value of the cargo being insured, ranging from 0.1% to 5% or even more, depending on the risk factors involved. In general, the higher the risk, the higher the premium rate.

For example, a shipment of low-value goods transported over a short distance may have a lower premium rate compared to a high-value shipment of fragile goods being transported over a longer distance or through a high-risk area. Furthermore, in addition to the basic premium, there may be additional charges for specific risks not covered by the standard policy.

At McKenzie Ross you can be sure to get the best solution available on today’s market and we’ll make sure you know exactly what you’re paying for.