Personal Finance

Sea Freight Insurance: What You Need to Know

If you’re shipping goods by sea, then you need to be aware of the risks involved and make sure that you have the right insurance in place.

Sea freight insurance is essential for shipping companies. If you ship products via sea, you’ll want to make sure that you purchase a commercial insurance policy for your company. But purchasing insurance isn’t always easy. So read this guide to get the lowdown on everything you need to know about sea freight insurance.

In this article, we’ll discuss the different types of coverage available for sea freight insurance policies and help you decide which one is best for you.

The Types of Policies:

There are two main types of sea freight insurance: hull and machinery (H&M) insurance and cargo insurance. H&M insurance covers the ship itself, while cargo insurance covers the goods being shipped. You can buy either type of coverage separately, or you can purchase a combined policy that covers both the ship and its cargo.

H&M Insurance:

Hull and machinery insurance is typically required by law if you’re operating a commercial vessel. This type of coverage protects your ship in case of an accident, such as collision or grounding. It also covers damage caused by bad weather or pirates.

Cargo Insurance:

Cargo insurance is not required by law, but it’s strongly recommended if you’re shipping goods that are valuable or perishable. This type of coverage protects your goods in case of damage or loss during transit.

Things to Consider:

  • When choosing a sea freight insurance policy, you need to consider the value of your ship and cargo, the route you’ll be shipping on, and the type of goods you’re shipping.
  • You should also think about whether you need comprehensive coverage or just basic protection.
  • Comprehensive coverage provides protection against all risks, while basic protection only covers a few specific risks.

What to Do Next:

Once you’ve decided which type of coverage you need, you can start shopping around for policies. Be sure to compare prices and coverage levels before buying any policy. You can find sea freight insurance through many different insurers, including maritime insurers and general liability insurers.

Types of Services:

  • Maritime insurers are specialist companies that provide insurance for ships and their cargoes. They usually have a good understanding of the risks involved in sea freight and can offer comprehensive policies at competitive prices.
  • General liability insurers are companies that provide insurance for a wide range of businesses, including manufacturers, retailers, and service providers. Many general liability insurers also offer maritime insurance, although they may not have the same level of expertise as maritime insurers.


If you’re shipping goods by sea, it’s important to make sure that your cargo is properly insured. There are many different types of sea freight insurance, and it can be tricky to figure out which one is right for your business.

When buying sea freight insurance, be sure to read the policy carefully to make sure you understand what’s covered and what’s not.

If you have any questions, don’t hesitate to ask your insurer for clarification. And remember, if you’re ever in doubt about whether your goods are adequately insured, it’s always better to err on the side of caution and purchase more coverage than you think you need. Ask the experts how to make the best decision. Better to be safe than sorry!

Posted by Dragan Sutevski

Dragan Sutevski is a founder and CEO of Sutevski Consulting, creating business excellence through innovative thinking. Get more from Dragan on Twitter. Contact Dragan

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