Marine Cargo Insurance for B2B Importers: The Coverage That Keeps a Lost Container From Becoming Your Loss

The $500 Liability You Didn't Know You Had

Here's a number that surprises most first-time importers: under the Hague-Visby rules that govern most ocean bills of lading, a carrier's liability for lost or damaged cargo is capped at about 666.67 SDR per package or 2 SDR per kilogram. In dollars that's often under $500 per package, and sometimes far less.

Your container holds $45,000 of goods. The carrier drops it into the harbor. You recover maybe a few thousand dollars, because the limit applies package by package and the fine print favors the carrier. The only thing that closes that gap is your own marine cargo policy, bought before the goods sail.

ICC A, B, and C: Pick the Coverage You Actually Have

Theft and rough handling are the two losses that actually happen in ordinary container freight. ICC C covers neither, which makes it nearly useless for a standard B2B shipment. ICC B covers the big perils but is silent on theft. ICC A is all-risks — everything except a short list of exclusions — and it's what you want for anything you can't afford to lose. The premium difference between B and A is often a fraction of a percent of cargo value.

Insure for 110% of CIF, Not the Invoice

Buyers insure the invoice value and stop there. That's a mistake. The insured value should be 110% of CIF or CIP — the cost of the goods plus freight and insurance, then 10% on top for your expected profit and the cost of chasing the claim. Under-insure and most policies cut your payout proportionally. Over-insuring is wasteful, but the 110% formula is standard for a reason.

Two more clauses to read before you sign. The warehouse-to-warehouse clause defines when coverage runs, and the general average clause means that if the ship jettisons cargo or suffers a casualty, every cargo owner can be asked to contribute to the loss — even if your own goods came through fine. Cargo insurance responds to general average contributions; uninsured buyers get a surprise bill.

FOB vs CIF: Who Buys the Policy

On FOB or EXW terms, the buyer controls the shipment and should buy the insurance themselves. On CIF or CIP, the seller arranges insurance, but it's usually the cheapest minimum-cover policy that satisfies the contract, not necessarily ICC A. If you buy CIF, read the policy the seller attached before you accept it — many importers have learned the hard way that "insured" on a CIF contract means ICC C minimum cover, not the all-risks protection they assumed.

Filing a Claim That Actually Pays

Insurance pays when you can prove three things: the goods were in good order when they sailed, the loss or damage happened during the insured transit, and you notified everyone in time. The clean bill of lading is your proof of condition at origin. The survey report — done by an independent surveyor before the container is opened or moved — is your proof of what was damaged and when. And the written notice of claim to the carrier has to go out within three days of delivery, or the carrier can walk away.

The claim clock is short, and it's why you open and survey a damaged container at the port, not at your warehouse two weeks later. Delay the survey and the insurer will argue the damage happened after delivery.

Common Questions from Buyers