Shipping products? You're liable until they arrive safely
Damaged in transit, lost shipments, theft from warehouses, customs delays, if you're moving goods domestically or internationally, you're exposed to losses at every step. Marine Cargo Insurance protects your products from the warehouse to the customer.
What could go wrong
Your products aren't safe just because they're with a freight company. Carriers have limited liability, usually $100-$200 per item, regardless of actual value. Container lost at sea? Freight damaged in transit? Warehouse fire? You're liable to your customers for delivery, and the carrier won't cover your losses. One lost shipment can wipe out months of profit.
The damaged freight
The warehouse fire
Your products are in a third-party warehouse awaiting distribution. The warehouse catches fire, and your entire inventory ($120,000*) is destroyed.
The warehouse's insurance only covers their building, not your stock. You've just lost 6 months of inventory investment.
The theft in transit
You're transporting high-value electronics interstate. The truck is hijacked at a rest stop. $65,000* worth of products gone.
A police report was filed, but nothing was recovered. You're contractually obligated to deliver to customers or refund them.
What this actually covers
Marine Cargo & Inland Transit Insurance
Marine Cargo & Inland Transit Insurance covers goods being moved:
Marine cargo (ocean freight):
- Imports from overseas suppliers
- Exports to international customers
- Sea freight and containerised goods
- Port-to-port or door-to-door cover
- General cargo, refrigerated, or specialised
- Full Container Load (FCL) or Less than Container Load (LCL)
Inland transit (domestic):
- Road transport (trucks, vans, couriers)
- Rail freight
- Air freight within Australia
- Interstate and intrastate movements
- First and last mile delivery
Storage and warehousing:
- Temporary storage during transit
- Third-party warehouses and distribution centres
- Customs bonded warehouses
- Storage before or after shipment
Specific covers:
- Physical loss or damage during transit
- Theft and pilferage
- Fire, flood, and storm damage
- Vehicle accidents and rollovers
- Improper handling or loading
- Contamination or spoilage
- Customs rejection or delays
When you need this
Pre-launch to first year
You need this immediately when you:
- Import products or materials from overseas
- Export to international customers
- Ship products interstate to customers
- Store inventory in third-party warehouses
- Use freight companies or couriers regularly
- Transport high-value goods
Single shipment vs annual:
One-off shipment? Buy voyage cover. Regular shipments? Annual open cover is more cost-effective and easier to manage.
Growing and hiring
Your cover needs to increase when:
- Shipment values regularly exceed $100k
- You're shipping weekly or daily
- You're expanding to new international markets
- You're using multiple freight providers
- You're holding more inventory in warehouses
- Your products are higher value or more fragile
Established and optimising
Review your cover annually or when:
- Update maximum shipment values
- Add new trade routes or countries
- Review packaging and handling standards
- Update warehouse locations
- Check policy limits match inventory levels
- Review claims history and loss patterns
Common questions
Doesn't the freight company insure my goods?
Freight companies have limited liability—usually $100-$200 per item or per kg, not the actual value. If your $50k shipment is damaged, you may receive only $500 from the carrier. You need your own cargo insurance.
What's 'General Average' and why do I need to cover it?
General Average is a maritime law principle. If a ship jettisons cargo to save the vessel in an emergency, all cargo owners must contribute to the loss proportionally—even if your cargo wasn't thrown overboard. Cargo insurance covers your contribution.
Can I insure goods I don't own yet (before payment)?
Yes. You can insure goods from the moment risk passes to you (often when they leave the supplier's warehouse, or when you pay for them). Review your Incoterms (e.g., FOB, CIF) to understand when the risk of loss transfers.
What if my goods are rejected at customs?
Standard cargo insurance doesn't cover customs rejection or duties paid on rejected goods unless you specifically add it. Some policies include customs duty and tax extensions.
Does this cover goods sitting in my warehouse?
Only during transit and temporary storage during transit. For goods permanently stored in your warehouse, you need separate Business & Office Insurance to cover stock.
What if I'm dropshipping and never touch the goods?
You still have a financial interest in the goods during transit to your customer. If they're lost or damaged, you're liable to the customer. Cargo insurance protects you even if you don't physically handle the goods.