Marine insurance is very important to ship owners. Without marine insurance, ship owners could incur a lot of loss and even financial loss especially when the ship is used commercially as a cargo carrier.

Cargo Insurance or Marine Cargo Insurance is put in place so as to protect the cargo that is being shipped. In some countries, it serves as part of a regulation that must be observed when it comes to shipping.

Marine insurance covers the loss or damage of ships, cargo, terminals, and any transport by which the property is transferred, acquired, or held between the points of origin and the final destination. It however does not cover loss of when the ship is sailing in the waters. This becomes a challenge as there could be loss while on water due to piracy or other reasons. In other to overcome this, Marine Cargo Insurance was introduced.

Marine cargo insurance or Cargo insurance can be used interchangeably. It covers and protects cargo while the ship is sailing on the waters. It covers the loss incurred while cargo is in transit. This type of cargo is very beneficial to moving oil tankers or other heavy cargo carrying ships.

Many companies offer Cargo Insurance. It’s all dependent on what the client wants and the recommendation the insurance company gives.

There are however things to note before obtaining Marine Cargo Insurance so as not to incur losses. Such includes;

· If the goods shipped are second hand or not packaged properly, the Cargo Insurance would not apply. Read how to properly package your cargo

· If the loss of cargo is due to negligence on the ship worker’s part or the ship workers are dishonest, then the insurance would not apply.

· It is also important to note that the condition of the weather also determines whether the Cargo insurance would be applicable or not.

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