Help protect your business from loss or damage to vessels and cargo

What is Marine Insurance ?

If your business takes you across the sea’s, you can be exposed to risks from mother nature, misadventure and even piracy.

Such risks can prevent your commercial vessel, cargo or truck from reaching its destination, or cause costly damage during the voyage.

Marine insurance refers a range of insurance products which help protect your business from loss or damage to vessels and cargo. It can cover the door to door delivery of goods world wide by sea, road and air including their storage on the way.

Who should consider it ?

Marine transit insurance is important for businesses involved in shipping or receiving goods, operating watercraft commercially, repairing vessels, running a watercraft commercially, repairing vessels running a marina and more

Marine insurance can provide valuable cover on both land and sea for :

Freight forwarders

  • Importers and exporters
  • Marina Owners
  • Mining companies

Primary Producers

  • Removalists
  • Tourism Operators
  • Wholesalers

In FY 2017, the value of the Australian export of goods and services as A$373.2 billion. That represented an increase of A$53.7 Billion on the previous year's outcome.

Australian Trade Commission, Australia's export performance in FY 2017


On average ,99% of Australian exports use sea transport (Department of Infrastructure, Regional Development and Cities Maritime 2018)


1597 million tonnes of cargo is moved across Australian wharves in 2015 – 2016 (Department of Infrastructure, Regional Development and Cities, Statistical report, Australian sea freight 2015 – 2016, 2018 )


The value of Australia’s exports by sea was $218.9 Billion in 2015 -2016 (Department of Infrastructure, Regional Development and Cities, Statistical report, Australian sea freight 2015 – 2016, 2018)

What Can it Cover?

There are different types of marine – related insurance polices – The type you choose will vary based on your specific needs. Depending on the type of policy you choose, marine insurance policies can cover :

Type of Cover

Potential Benefits

Accidental Damage

Physical Damage that occurs as a result of unexpected and non deliberate action

Insured Events

Only the events nominated by the insurer. These are commonly known as fire collision and /or over turning covers, although there are normally more events offered than these.


Damage caused due to the collision of the carrying vehicle vessel, train aeroplane. It may be a collision between conveyances or it might involve the conveyance hitting another object such as a bridge, wall tree etc

Dropping during unloading

Dropping during loading or unloading if this not an excluded event specified under a Specified Risks policy.

Fire Explosion, lightning

While fire is common event covered by all transit policies, cover for explosion and lightning may or may not be granted.

Impact of goods with external objects other than the conveying Vehicle or Road

Full impact cover can be provided, including goods falling from and within the vehicle.

Malicious Damage

Malicious Acts, vandalism and sabotage by third parties

What Usually Isn't Covered?

Exclusions the excess you need to pay and limits of liability can vary greatly depending on your insurer. Policies generally won’t include cover for ;

  • Consequential Loss / Loss of market
  • War
  • Delay

Case study

Kerri runs a small business that exports organic cheeses from Australia to Asia. It’s a new business, so she works very hard to provide quality products and builds her client base.

Recently, a shipment of her cheeses that were going to a new client was left on the dock unrefrigerated – and the cheeses were spoilt. Not only did Kerri lose the valuable products, but she also missed out on the repeat business of the new client.

Thankfully, Kerri had marine transit insurance, which covered her products from the time they left her business until were in her client’s possession. While her insurance didn’t help her keep the new client, at least the insurance reimbursed Kerri for the cost of the cheeses that were spoilt.

A product disclosure statement (PDS) is available from us. You should consider the PDS in deciding whether to acquire or continue to hold, business insurance.

Important note: This information is provided to assist you in understanding the terms, implications and common considerations with this type of insurance. It does not constitute advice, and is not complete, so please discuss the full details with us.

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