Scope of Marine Insurance in Logistics: Beyond “Ship to Ship”

 

Scope of Marine Insurance in Logistics: Beyond “Ship to Ship”

Introduction

The scope of marine insurance in logistics is far broader than many assume. It’s not just ocean vessels and containers; it stretches across door-to-door multimodal chains, covers documentation liabilities, supports General Average contributions, and even responds to war, strikes, cyber-triggered delays, and inland transits. Understanding the true scope of marine insurance in logistics helps shippers, forwarders, and 3PLs structure holistic protection, reduce friction at claims time, and align policies with Incoterms and contracts.

The layered scope: cargo, liability, and operations

Layer	What It Covers	Where It Sits in the Logistics Chain
Cargo Policies (ICC A/B/C)	Physical loss or damage	Factory → Port → Vessel → Port → Warehouse
War & SRCC	War risks, strikes, riots, civil commotion	High-risk corridors, sanctioned regions
Delay Extensions (limited)	Certain named perils causing delay	Time-sensitive supply chains
General Average	Shared sacrifice costs	All ocean voyages
Warehouse-to-Warehouse	Multimodal, door-to-door	Inland road/rail legs
Freight Forwarders’ Liability / 3PL Liability	Legal liability for errors, misdelivery, etc.	Intermediaries & logistics providers
Parametric / Cat Covers (emerging)	Trigger-based, e.g., wind speed, port closure	Catastrophe-prone regions
Cyber (add-on, standalone)	Data breaches, ransomware, BI	Digitized logistics platforms

Why the scope is widening

• Complex, multimodal networks mean more transfer points.
  
  

• Bigger ships = bigger accumulation risk (one casualty, massive losses).
  
  

• Extreme weather frequency is rising, increasing loss volatility.
  
  

• Supply chain digitalization creates cyber loss vectors (booking, EDI, documentation).
  
  

Practical scope map (illustrative)

1. Pre-carriage (inland): Loading, warehousing, customs staging.
   
   

2. Main leg (sea/air/rail): Traditional marine insurance backbone.
   
   

3. On-carriage (inland): Final-mile delivery to buyer.
   
   

4. Storage during transit: Covered if within policy time limits and specified as “transit storage.”
   
   

5. Documentation & advisory liability: Covered by logistics liability/E&O—often overlooked.
   
   

6. General Average: Cargo policies respond so shippers can get cargo released promptly.
   
   

7. Political & War risks: Added by clauses; critical in certain corridors.
   
   

8. Cyber-triggered disruptions: Typically not covered unless specifically endorsed.

Numbers that underline the breadth (illustrative, widely cited)

• ~80–90% of world trade by volume is seaborne (UNCTAD), but a large portion of losses occur inland during stuffing, unstuffing, or storage.
  
  

• IUMI notes rising NatCat and accumulation exposures as ships and ports concentrate more value.
  
  

• Port closures and canal disruptions (e.g., weather, congestion, geopolitical) have pushed insurers to explore delay and parametric solutions—part of the evolving scope of marine insurance in logistics.
  
  

Common exclusions that define the limits of the scope

• Inherent vice / poor packing (fixable with better SOPs and packaging design).
  
  

• Ordinary leakage/weight loss in some commodities.
  
  

• Cyber incidents unless endorsed.
  
  

• Sanctions / illegal trade.
  Understanding these boundaries is just as important as appreciating the full scope of marine insurance in logistics.
  
  

Quick comparison: ICC Clause scope

Clause	Scope Breadth	Use Case
ICC (A)	Broadest “All Risks”	High-value/fragile goods
ICC (B)	Medium	Lower-risk commodities
ICC (C)	Narrow	Bulk, low-value, or where cost is key

Governance & documentation essentials

• Align Incoterms 2020 with who buys insurance and to what point.
  
  

• State valuation formula (e.g., CIF + 10%) to reduce disputes.
  
  

• Map storage locations & time limits to ensure transit coverage doesn’t silently expire.
  
  

• Maintain claims SOPs to meet prompt notice and mitigation duties.
  
  

FAQs

1. Does marine insurance end at the port?
Not if you have warehouse-to-warehouse coverage. The scope of marine insurance in logistics can include inland legs.

2. Are logistics liabilities part of marine insurance?
They’re adjacent. Many programs bundle cargo + logistics liability/E&O to reflect the scope of marine insurance in logistics as it touches advisory and custody roles.

3. Can I insure against delays?
Standard cargo policies rarely cover pure delay. Some named-peril or parametric solutions are emerging—ask specifically.

4. How do I handle General Average fast?
Keep your cargo policy current and accessible so you can post guarantees quickly.

5. Are cyber risks covered?
Usually excluded unless you buy an endorsement or a dedicated cyber policy.

Reference links (non-branded)

• UNCTAD Review of Maritime Transport: https://unctad.org
  
  

• IUMI Facts & Figures: https://iumi.com
  
  

• World Bank LPI: https://lpi.worldbank.org
  
  

• ICC Incoterms 2020: https://iccwbo.org
  
  

Conclusion

From inland pre-carriage to final-mile delivery—and from physical loss to professional liability—the scope of marine insurance in logistics is far wider than ocean transit alone. To stay resilient, map your end-to-end chain and buy to match the real scope of marine insurance in logistics.