What to Send Your Broker When Requesting a Marine Cargo Quote

Why the Submission Package Matters

Specialist underwriters in the London company market price marine cargo risk on the basis of commodity, packing, voyage routing, values at risk, and your loss history. A thin submission — a one-line email saying 'we ship electronics, need cover' — will either produce a wide deductible and restrictive conditions, or it will simply not be quoted at all. A well-structured submission, by contrast, lets your broker negotiate the Institute Cargo Clauses (A) as the default basis of cover rather than accepting (B) or (C) conditions, and gives the underwriter confidence to offer broader named-perils extensions without loading the rate.

The difference between Institute Cargo Clauses (A) and (C) is not academic. Clause (A) is an all-risks basis — it covers all risks of physical loss or damage to your cargo unless a specific exclusion applies. Clause (C) covers only a named list of major casualties: fire, explosion, vessel stranding, collision, discharge at a port of distress, and a handful of others. If your goods are damaged by rough handling during transhipment at a PSA terminal or a Felixstowe container yard, Clause (C) will not respond. Clause (A) will, subject to the standard exclusions for inherent vice, inadequate packing, and delay. The underwriter's willingness to offer (A) conditions at a competitive premium depends almost entirely on the quality of information in your submission.

There is also a practical timing point. Open cover programmes renew annually, and underwriters expect to see renewal submissions at least four to six weeks before expiry. If you come to your broker two weeks before renewal with incomplete data, you are negotiating from weakness. Build the submission habit now, and your broker can approach multiple specialist underwriters simultaneously and return with competing terms.

Core Documents for a Cargo Insurance Submission

The following list covers the baseline documents your broker needs before approaching underwriters. Some items are mandatory for any quote; others are required only for specific cover types or commodity classes. Your broker will tell you which apply to your programme, but arriving with all of them shortens the process considerably.

For an annual open cover or a voyage policy on general merchandise, the mandatory items are your completed proposal form (your broker will supply this), a commodity schedule or description of goods, packing and containerisation details, and your five-year loss record. For higher-value or specialist cargoes — refrigerated goods, fine art, project cargo, dangerous goods — additional technical documentation is required, as set out below.

One document that cargo owners frequently overlook is the sale contract or Incoterms clause. The Incoterms rule in your contract of sale determines at what point risk in the goods passes to you, and therefore at what point your insurance obligation begins. If you are buying on CIF terms, the seller is obliged to arrange insurance to the port of destination — but the cover they arrange may be on Institute Cargo Clauses (C) minimum conditions, which may not meet your needs. If you are buying on FOB or EXW terms, the risk passes to you at the point of loading or collection, and you need your own cover from that moment. Your broker needs to see the Incoterms clause to make sure your policy attaches at the right point and does not leave a gap.

• Completed cargo proposal form (supplied by your broker)
• Full commodity description: nature of goods, HS code if available, packing method, containerisation (FCL or LCL)
• Annual turnover or estimated annual shipment value (for open cover) or single-shipment value (for voyage policy)
• Voyage details: origin, destination, transhipment ports, carrier names or vessel class
• Incoterms clause from your sale or purchase contract
• Five-year loss record: date, cause, value of claim, whether recovered
• Any existing policy wording or schedule (for renewal or transfer of cover)
• Packing specifications or independent survey reports for fragile, high-value, or project cargo
• Cold-chain or temperature-monitoring records for refrigerated or perishable goods
• Dangerous goods declaration (DGD) or MSDS for hazardous cargo

Hull, P&I and Freight Liability: What Else Your Broker Needs

If you are placing a combined programme — cargo cover alongside hull and machinery, P&I, or freight liability — the submission expands. For hull cover under the Institute Hull Clauses or Institute Time Clauses (Hulls), your broker needs the vessel's class certificate (Bureau Veritas, Lloyd's Register, DNV, or equivalent), the most recent condition survey, the vessel's trading area, and details of any outstanding class recommendations. Underwriters will not quote hull cover on a vessel with open class conditions without knowing what those conditions are and when they will be closed.

The Inchmaree clause — which extends hull cover to loss or damage caused by the negligence of masters, officers, or crew, and by latent defects in machinery — is a standard extension under most hull policies, but its scope varies between wordings. If your vessel has experienced machinery damage in the past three years, your broker needs to know the cause and the repair history before approaching underwriters, because an undisclosed prior loss is a material fact under the Marine Insurance Act 1906 and could void your cover at the point of claim.

For P&I and freight liability, the key documents are your charter party or bill of lading terms, your crew list with nationalities and MLC 2006 compliance records, and details of any pending or threatened claims. If your bill of lading incorporates the Hague-Visby Rules, your liability to cargo interests is capped at the SDR per-package limit set by the Convention — but that cap does not protect you against claims that fall outside the Rules, such as claims by third parties for collision damage or pollution. Your P&I cover needs to be structured with that in mind, and your broker needs to see your bill of lading terms to check for gaps.

War, Strikes, and Sanctions: The Clauses That Require Extra Information

Standard Institute Cargo Clauses exclude war and strikes risks. These are covered separately under the Institute War Clauses (Cargo) and Institute Strikes Clauses (Cargo), which can be added to your policy for an additional premium. If any part of your supply chain passes through a listed area under the Joint War Committee (JWC) Listed Areas — which currently includes the Red Sea, Gulf of Aden, Bab-el-Mandeb Strait, and parts of the Arabian Gulf — your broker needs to know this before approaching underwriters, because war cover in those areas is subject to separate rating and may require additional voyage information.

Sanctions compliance is not optional and is not a formality. If your cargo is destined for, or transiting through, a sanctioned jurisdiction, your policy will contain a sanctions exclusion clause that will void cover for any shipment that breaches applicable sanctions regimes — UK, EU, UN, or US OFAC. Your broker needs to know your full routing, including transhipment ports, and the identity of your counterparties. If there is any sanctions exposure in your supply chain, disclose it upfront: a claim that is later found to involve a sanctioned party will not be paid, and the policy may be voided entirely.

General average is another area where cargo owners are frequently caught out. Under the York-Antwerp Rules, if the shipowner declares general average — following a casualty where sacrifices are made to save the common maritime adventure — every cargo interest must contribute to the general average fund before their goods are released. If you cannot provide a general average bond and, where required, a cash deposit or bank guarantee, your cargo may be held at the port of discharge. Your cargo policy should include general average cover, and your broker should confirm this is in place before your goods sail.

What Happens After You Send the Documents

Once your broker has a complete submission, they will approach specialist underwriters in the London company market and, where appropriate, European markets. For a straightforward annual open cover on containerised general cargo, indicative terms can often be returned within two to three working days. For complex risks — project cargo, refrigerated goods, or shipments with war-zone routing — allow longer, and expect the underwriter to ask follow-up questions.

Your broker should return to you with a comparison of terms: the basis of cover (which Institute Cargo Clauses apply), the deductible, any commodity or voyage exclusions, and the premium. Read the exclusions carefully. A policy written on Institute Cargo Clauses (A) with a broad exclusion for theft of unattended vehicles is not the same as a clean (A) policy if your supply chain involves road legs. If the terms include conditions you cannot meet — for example, a requirement for GPS tracking on high-value shipments — tell your broker before binding, not after a loss.

Once you accept terms, your broker will bind cover and issue a cover note or certificate of insurance. For shipments under an open cover, your broker will also issue a schedule of the open cover terms, which you or your freight forwarder will use to declare individual shipments. Keep a copy of the open cover schedule accessible to your logistics team: a shipment that is not declared under the open cover before it sails may not be covered, depending on the terms of the held-covered clause in your policy.

Frequently asked questions

Do I need a separate war risks policy, or is it included in my cargo cover?

War and strikes risks are excluded from the standard Institute Cargo Clauses (A), (B), and (C). They are covered under separate Institute War Clauses (Cargo) and Institute Strikes Clauses (Cargo), which are added to your policy for an additional premium. If your routing passes through any JWC Listed Area — including the Red Sea or Bab-el-Mandeb — you need these extensions in place before your goods sail. Tell your broker your full routing, including transhipment ports, so they can confirm whether listed-area loading applies.

What happens if I do not have a five-year loss record — for example, because I am a new business?

Underwriters understand that new businesses do not have a loss history. In that case, your broker will present the risk on the basis of your commodity, packing standards, carrier selection, and supply chain controls. A well-documented submission — including packing specifications, carrier vetting procedures, and any independent survey arrangements — can compensate for the absence of a loss record. What underwriters cannot work with is a submission that contains no information at all.

How long does it take to bind cover once I have sent the documents?

For a standard annual open cover on containerised general cargo, indicative terms are typically available within two to three working days of a complete submission. Complex risks — project cargo, refrigerated goods, high-value electronics, or shipments with war-zone routing — take longer, and the underwriter may ask follow-up questions. If you have a shipment sailing imminently, tell your broker the sailing date at the outset so they can prioritise accordingly.

What do you need from me if I am renewing an existing policy rather than placing new cover?

For a renewal, your broker needs your current policy schedule and wording, your updated annual shipment value or turnover, any changes to your commodity mix or trading routes, and your claims experience for the expiring policy year. If there have been any changes to your business — new customers, new origins or destinations, new commodities — disclose them at renewal. Changes that are not disclosed may not be covered under the renewed policy.

My sale contract is on CIF terms — does that mean I do not need my own cargo insurance?

Under CIF terms, the seller is obliged to arrange insurance to the named port of destination. However, the minimum insurance obligation under CIF (Incoterms 2020) is cover on Institute Cargo Clauses (C) — the most restrictive basis. That cover may not be adequate for your goods, and it is arranged by the seller for the seller's benefit. If you want cover on (A) conditions, or if you want to control the claims process yourself, you should arrange your own policy. Your broker can advise on how to structure cover that sits alongside or replaces the seller's CIF insurance.

What is general average, and does my cargo policy cover it?

General average is a principle of maritime law under which all parties to a voyage — shipowner and all cargo interests — share proportionally in losses and expenses incurred to save the common adventure. If the shipowner declares general average, your cargo may be held at the port of discharge until you provide a general average bond and, where required, a cash deposit or bank guarantee. A properly structured cargo policy under the Institute Cargo Clauses will include general average cover, meaning your insurer will provide the bond and deposit on your behalf. Confirm with your broker that your policy includes this before your goods sail.