Can You Get Just Cargo Insurance?

What standalone cargo insurance actually covers

Marine cargo insurance is placed against the Institute Cargo Clauses (ICC), which exist in three forms: A, B, and C. ICC (A) is the broadest, covering all risks of physical loss or damage to your goods except for a defined list of exclusions. ICC (B) and ICC (C) are named-perils policies — they respond only to the specific causes of loss listed in the clause, such as fire, stranding, collision, and (under B only) earthquake and washing overboard. For most commercial cargo, ICC (A) is the appropriate starting point; ICC (B) or (C) tend to appear where underwriters require a restricted basis for high-risk commodities or trading areas.

All three sets of clauses exclude loss attributable to inherent vice, inadequate packing, delay, and wilful misconduct of the assured. War and strikes risks are also excluded from the base clauses but can be reinstated by endorsement — typically under the Institute War Clauses (Cargo) and Institute Strikes Clauses (Cargo). If your goods move through or near designated high-risk areas, those endorsements are not optional extras; they are essential cover.

A standalone cargo policy can be structured as a single-voyage certificate, a named-shipment policy, or an open cover — an annually renewable facility under which individual shipments are declared as they arise. Open cover is the standard arrangement for any buyer moving goods regularly, because it removes the need to bind a new policy for every consignment and ensures no shipment falls through the gaps between individual placements.

What your cargo policy does not cover — and why that matters

A cargo policy protects your interest in the goods. It does not protect the vessel carrying them, the liability you may owe to third parties, or the freight revenue at risk if a voyage is abandoned. If you own or operate the carrying vessel as well as the cargo, you need to think about those exposures separately — hull and machinery cover for the vessel itself, and a P&I entry for third-party liability including cargo liability to other shippers.

General average is a point that catches cargo owners by surprise. Under the York-Antwerp Rules, if the shipowner declares general average — for example, following an emergency jettison or a salvage operation — every cargo interest on board is required to contribute to the shared loss in proportion to the value of their goods. Your cargo insurer will pay your general average contribution, but only if you have a policy in force at the time of the casualty. An uninsured cargo owner faces that contribution demand personally. This is one of the strongest practical arguments for maintaining continuous cover even on shipments you consider low-risk.

Sue-and-labour costs — the reasonable expenses you incur to avert or minimise a covered loss — are recoverable under a cargo policy, but only if you act promptly and document your actions. If your goods are damaged in transit and you arrange emergency re-packing or onward carriage to prevent further deterioration, keep every invoice. Your insurer will expect to see that evidence before settling the sue-and-labour element of your claim.

The Hague-Visby Rules, which govern most bills of lading issued in the UK and EEA, cap the carrier's liability per package or per kilogramme. For high-value cargo, that cap will almost certainly be less than the actual value of your goods. Your cargo policy bridges that gap. If you are shipping under a charterparty rather than a liner bill of lading, check whether the Hamburg Rules or a bespoke contractual regime applies — the liability cap and the carrier's defences differ, and your broker needs to know the contractual basis before recommending a sum insured.

• Hull and machinery damage to the carrying vessel — not your risk unless you own the vessel
• P&I liability to third parties — requires a separate P&I entry or liability policy
• Freight at risk — covered by a separate freight interest or freight liability policy
• Delay losses — expressly excluded under all three ICC sets
• Loss caused by your own inadequate packing or preparation of the goods
• Consequential loss and loss of market — excluded unless specifically endorsed

When a standalone cargo policy is sufficient — and when it is not

If you are a cargo owner, importer, exporter, or freight forwarder with no ownership interest in the carrying vessel, a standalone cargo policy is almost always the right structure. Your exposure is the goods themselves, and a well-placed ICC (A) open cover with war and strikes endorsements will respond to the overwhelming majority of physical loss scenarios you will encounter.

If you are a vessel operator carrying your own cargo, the picture changes. Your hull policy will not respond to damage to your own goods — hull cover protects the ship, not the cargo. You need a cargo policy sitting alongside your hull and machinery cover. Similarly, if you operate under a contract of affreightment or a charterparty that makes you responsible for third-party cargo, your P&I entry should cover cargo liability, but you should confirm that with your P&I club or liability insurer before you sign the contract.

Freight forwarders occupy a particular position. As a forwarder, you may hold goods as a bailee, issue your own house bills of lading, and take on contractual liability to your customers for loss or damage. A cargo policy on your own goods is not the same as freight forwarders' liability insurance, which covers your legal liability to your customers when their goods are lost or damaged in your custody or under your contractual responsibility. Many forwarders need both.

How cargo cover is priced and structured in the London market

Cargo insurance is rated on the commodity, the trade lane, the mode of transport, the packing standard, the sum insured, and the claims history of the assured. There is no single market rate — capacity and pricing vary between specialist underwriters, and the terms available to a buyer with a clean five-year record will differ materially from those available to a buyer with frequent attritional claims.

For an open cover, you will declare shipments periodically — monthly or quarterly — and pay premium in arrears against those declarations. The policy will specify a maximum any-one-conveyance limit, which caps the underwriter's exposure on any single vessel or aircraft. If a single consignment exceeds that limit, you need to advise your broker before shipment so that additional capacity can be arranged. Failing to do so does not automatically void the policy, but it may result in a proportional reduction in any claim settlement.

Deductibles on cargo policies are typically modest for standard commercial goods, but they widen for bulk commodities, refrigerated cargo, and high-theft items such as electronics and pharmaceuticals. If your trade involves those categories, discuss the deductible structure with your broker before binding — a deductible that looks acceptable in the abstract can be painful on a high-frequency, low-severity claims pattern.

What to bring to your broker when requesting a cargo quote

The more precisely you describe your trade, the more accurately your broker can approach the market. Underwriters price cargo risk on specific information, and a vague submission will either produce a wide premium range or attract restrictive terms as a precaution. Come prepared with the following.

If you are placing an open cover, your broker will also want your five-year claims history, including any claims that were notified but not paid. A clean record is a genuine commercial asset at renewal; do not underestimate it.

• Commodity description — what the goods are, how they are packed, and their HS code if available
• Trade lanes — origin and destination countries, ports of loading and discharge, any transhipment points
• Mode of transport — FCL, LCL, breakbulk, ro-ro, air freight, or multimodal
• Annual turnover or estimated annual shipment value for open cover
• Maximum value of any single consignment
• Contractual basis — Incoterms, bill of lading terms, any special conditions in your sale or purchase contracts
• Five-year claims history for renewals or transfers from another insurer

Frequently asked questions

Do I need to own the vessel to buy cargo insurance?

No. Cargo insurance protects your interest in the goods, not the vessel. You can place cover as a cargo owner, importer, exporter, or freight forwarder regardless of whether you have any ownership or operational interest in the carrying ship. Your insurable interest is the value of the goods at risk.

What happens if the shipowner declares general average and I have no cargo policy?

You will receive a general average notice requiring you to contribute to the shared loss before your goods are released. Without a cargo policy, that contribution comes out of your own funds. Your cargo insurer would normally pay that contribution on your behalf and deal with the average adjusters directly. This is one of the most practical reasons to maintain continuous cover even on shipments you consider routine.

Can I get cargo insurance for a single shipment rather than an annual policy?

Yes. Single-voyage certificates and named-shipment policies are available through the London market. They are more expensive per unit of cover than an annual open cover, but they are the right structure if you ship infrequently or are testing a new trade lane before committing to a full programme.

Does ICC (A) cover theft?

Yes. ICC (A) covers all risks of physical loss or damage, which includes theft, pilferage, and non-delivery. ICC (B) and ICC (C) do not cover theft unless it is specifically endorsed. If your cargo is high-value or moves through high-theft corridors, ICC (A) is the appropriate basis.

What do you need from me to get terms?

At minimum: a description of the goods and how they are packed, the trade lanes you use, the mode of transport, the maximum value of any single consignment, and your estimated annual shipment value if you want an open cover. For a transfer from an existing insurer, a five-year claims history is also required. The more detail you provide, the more competitive the terms we can seek on your behalf.

How long does it take to bind cargo cover?

For a straightforward open cover on standard commercial goods with a clean claims record, terms can typically be agreed within a few working days of a complete submission. Single-voyage certificates for non-hazardous cargo can often be bound same-day. Complex risks — bulk commodities, hazardous materials, high-value electronics, or trade lanes involving sanctioned territories — take longer because they require referral to specialist underwriters.