The main types of trade and marine insurance
- Marine cargo insurance covers loss of or damage to goods in transit. Most policies use the Institute Cargo Clauses: (A) is all-risks cover with listed exclusions, while (B) and (C) cover only named events such as fire, stranding and jettison.
- Protection & indemnity (P&I) covers shipowners' liabilities — cargo claims, pollution, crew injury and wreck removal. Most ocean-going tonnage is insured by the mutual clubs of the International Group of P&I Clubs.
- Hull and machinery (H&M) covers physical damage to the ship itself.
- Trade credit insurance protects the exporter if the buyer fails to pay because of insolvency or political events. Export credit agencies (ECAs) offer similar cover backed by their governments.
Who buys cargo insurance depends on the Incoterm: under CIF and CIP the seller must insure the goods; under FOB, FCA and EXW the buyer usually arranges it. See the Incoterms 2020 guide.
Insurers and P&I clubs in this directory (40)
| # | Insurer | Line of business | Headquarters |
|---|---|---|---|
| 1 | Allianz Commercial | Marine Cargo & Logistics | Munich, Germany |
| 2 | AXA XL | Marine Cargo & Specie | Hamilton / Paris, Bermuda / France |
| 3 | Allianz Trade | Trade Credit & Political Risk | Paris, France |
| 4 | Gard P&I Club | P&I Mutual Club (IG) | Arendal, Norway |
| 5 | Zurich Insurance Group | Global Marine & Freight | Zurich, Switzerland |
| 6 | Chubb Global Marine | Marine Cargo & Logistics | Zurich / New York, Switzerland / USA |
| 7 | Coface | Trade Credit & Political Risk | Paris, France |
| 8 | NorthStandard P&I Club | P&I Mutual Club (IG) | Newcastle upon Tyne, United Kingdom |
| 9 | Tokio Marine HCC | Marine Cargo & Logistics | Tokyo, Japan |
| 10 | Atradius | Trade Credit & Surety | Amsterdam, Netherlands |
| 11 | Britannia P&I Club | P&I Mutual Club (IG) | London, United Kingdom |
| 12 | Sinosure | Export Credit Agency (ECA) | Beijing, China |
| 13 | AIG Marine | Marine Cargo & Logistics | New York, USA |
| 14 | Swiss Re Corporate Solutions | Marine Cargo & Reinsurance | Zurich, Switzerland |
| 15 | Skuld P&I Club | P&I Mutual Club (IG) | Oslo, Norway |
| 16 | UK P&I Club | P&I Mutual Club (IG) | London, United Kingdom |
| 17 | Berkshire Hathaway Specialty (BHSI) | Marine Cargo & Hull | Boston, USA |
| 18 | Steamship Mutual P&I | P&I Mutual Club (IG) | London, United Kingdom |
| 19 | Munich Re Marine | Marine Reinsurance & Hull | Munich, Germany |
| 20 | Beazley Group | Lloyd's Syndicate Underwriter | London, United Kingdom |
| 21 | ICIEC (IsDB Group) | Multilateral ECA (IsDB) | Jeddah, Saudi Arabia |
| 22 | Sompo International | Marine Cargo & Logistics | Hamilton / Tokyo, Bermuda / Japan |
| 23 | West of England P&I | P&I Mutual Club (IG) | London, United Kingdom |
| 24 | QBE Insurance Group | Global Marine & Cargo | Sydney, Australia |
| 25 | ADNIC (Abu Dhabi National) | Middle East Marine & Energy | Abu Dhabi, United Arab Emirates |
| 26 | Tawuniya | KSA Marine & Cargo Takaful | Riyadh, Saudi Arabia |
| 27 | Misr Insurance | Mediterranean & Suez Cargo | Cairo / Alexandria, Egypt |
| 28 | Markel International | Specialty Marine & H&M | London / Richmond, UK / USA |
| 29 | The London P&I Club | P&I Mutual Club (IG) | London, United Kingdom |
| 30 | SCOR SE | Marine Reinsurance & Hull | Paris, France |
| 31 | Japan P&I Club | P&I Mutual Club (IG) | Tokyo, Japan |
| 32 | American Club (SCB) | P&I Mutual Club (IG) | New York, USA |
| 33 | The Shipowners' Club | P&I Mutual Club (IG) | Luxembourg / London, Luxembourg / UK |
| 34 | The Swedish Club | P&I Mutual Club (IG) | Gothenburg, Sweden |
| 35 | MS Amlin | Lloyd's Marine & Cargo | London / Rotterdam, United Kingdom / Netherlands |
| 36 | Hannover Re Marine | Marine Reinsurance & Cargo | Hannover, Germany |
| 37 | Liberty Specialty Markets | Marine Cargo & Specie | Boston / London, USA / UK |
| 38 | RSA Insurance Group | Marine Cargo & Logistics | London, United Kingdom |
| 39 | Marsh McLennan Marine | Global Marine Underwriting | New York / London, USA / UK |
| 40 | Qatar Insurance Company (QIC) | Gulf Marine & Energy | Doha, Qatar |
Open an insurer above for its specialties and financial strength ratings. Ratings change; confirm the current rating with the rating agency before placing cover.
How to choose an insurer
- Financial strength. Ratings from agencies such as AM Best and S&P show how able an insurer is to pay claims. Many banks and buyers require a minimum rating.
- Claims service where the cargo arrives. A local surveyor and claims agent at the destination speeds up surveys and settlement.
- The right clauses. Check exclusions such as insufficient packing, delay and inherent vice; add war and strikes cover where needed.
- Sum insured. Cargo is commonly insured for the CIF value plus 10%, which is also the minimum under Incoterms and UCP 600 letters of credit.
For cargo inspections and certificates, see the marine cargo insurance and inspection portal; for letter-of-credit rules, the UCP 600 workbench.
Frequently asked questions
What is the difference between ICC (A), (B) and (C)?
ICC (A) covers all risks of loss or damage except listed exclusions; ICC (B) and (C) only cover named perils, with (C) the narrowest. Most manufactured goods are insured on (A) terms.
What is a P&I club?
A mutual association of shipowners that insures each other against third-party liabilities such as cargo damage claims, pollution and crew injury.
How much should cargo be insured for?
The common practice, and the minimum under Incoterms CIF/CIP and UCP 600 letters of credit, is 110% of the CIF or CIP value.
What does trade credit insurance cover?
It pays the exporter a large share of the invoice if the buyer does not pay because of insolvency, protracted default or, with political risk cover, events such as currency transfer restrictions.
Who pays for cargo insurance under FOB?
Under FOB the risk passes to the buyer when the goods are on board, so the buyer normally arranges and pays for the insurance of the sea voyage.