# Marine insurance

*Last updated: 2026-06-26*

> Marine insurance covers risks specific to ocean transport that fall outside the scope of standard land-based cargo policies: collision, sinking, grounding, piracy, storm damage, general average, and harm caused by saltwater or condensation.

Marine insurance covers risks specific to ocean transport that fall outside the scope of standard land-based cargo policies: collision, sinking, grounding, piracy, storm damage, general average, and harm caused by saltwater or condensation. Underwriters calculate premiums based on vessel type, trade route, cargo classification, declared value, and the breadth of cover chosen—typically All Risks or Named Perils. Under certain Incoterms, notably CIF, the seller is obliged to arrange at least minimum insurance coverage in the buyer's favour. The Institute Cargo Clauses, developed within the London insurance market, are the internationally recognised standard conditions referenced in most ocean cargo policies. Without marine insurance, whichever party bears the risk under the applicable Incoterm is fully exposed to loss during the voyage.

**Source:** [https://www.investopedia.com/terms/m/marineinsurance.asp](https://www.investopedia.com/terms/m/marineinsurance.asp)

## Quick Facts

| Property | Value |
|---|---|
| Term | Marine insurance |
| Language | EN |
| Word count | 119 |
| Last updated | 2026-06-26 |
| Source | https://www.investopedia.com/terms/m/marineinsurance.asp |

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