Glossary

Ocean marine

Insurance for ships, their cargo and the liabilities of shipowners and shippers at sea; one of the oldest forms of insurance and separate from inland marine.

Also called: marine insurance, ocean marine insurance, marine cargo and hull, wet marine

Ocean marine insurance covers the risks of moving goods and operating vessels on open water. The classic coverages are hull and machinery, for the vessel itself; cargo, for goods in transit; freight, for the carrier's earnings; and protection and indemnity (P&I), the shipowner's liability for crew injury, cargo damage and collisions. Cargo is commonly written on Institute Cargo Clauses (A), (B) or (C), with (A) the broadest.

Importers and exporters are the usual business buyers. They need their own cargo cover because the ocean carrier's liability is limited by law and contract; under the U.S. Carriage of Goods by Sea Act, for example, it is capped at $500 per package unless a higher value is declared. When a ship is in peril and cargo is sacrificed, general average makes all the cargo owners share the loss, and uninsured shippers can be asked to post security before their goods are released.

Ocean marine is underwritten by specialist marine underwriters, often on manuscript or open-cargo policies that cover all shipments over a year, and it sits outside the standard ISO commercial forms. Don't confuse it with inland marine, which covers goods and equipment on land. The guide on ocean marine and cargo insurance: how shipment and vessel coverage works explains the coverages, and incoterms and who insures goods in transit shows who must insure goods under each shipping term. Crew injury claims fall under the Jones Act and USL&H coverage rather than state workers' comp.

Last reviewed October 10, 2026

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Related terms

Inland marine Property coverage for goods in transit, movable equipment and certain specialty property, written outside the standard building and contents forms. General average A maritime principle under which everyone with an interest in a voyage shares, in proportion to values saved, the cost of a sacrifice made to save the venture. Jones Act A federal law letting injured seamen sue their employer for negligence, which replaces workers' compensation for crew members of vessels. USL&H coverage Workers' comp coverage, added by endorsement, for maritime workers on or near navigable waters who fall under the federal Longshore Act. Motor truck cargo Coverage for a trucker's legal liability when a customer's freight is lost, stolen or damaged while in the carrier's care during transport.

Related guides

General average: what it means for shippers and cargo owners General average makes every party on a sea voyage share emergency losses, even undamaged cargo. How a declaration works and how cargo insurance responds. Incoterms and who insures goods in transit Only CIF and CIP make the seller buy cargo insurance. Where risk passes under all 11 Incoterms rules, who should insure, and what to put in the contract. Ocean marine and cargo insurance: how shipment and vessel coverage works Marine cargo insurance covers goods door to door under the Institute Cargo Clauses. What A, B and C cover, why carrier liability falls short, how claims run. Sanctions clauses in insurance policies What sanctions clauses such as LMA3100 do, how OFAC risk reaches your policy, and how to read the wording before a claim, cargo shipment or ransom payment. Supply chain risk and insurance: what is covered and what is not How to map and score supplier risk, which insurance lines respond to supply chain losses, and the disruptions no policy covers: tariffs, strikes, insolvency.

Related insurers

AIG Global commercial insurer for middle-market, large and multinational companies, led in the U.S. by National Union and Lexington, the E&S arm. Broker-sold. Allianz Commercial Allianz's commercial arm (formerly AGCS, absorbing Fireman's Fund); large corporate property, casualty, marine, aviation and specialty cover through brokers. Intact Insurance Specialty Solutions U.S. specialty arm of Canada's Intact Financial (formerly OneBeacon), writing surety, marine, A&H, tech, entertainment and management liability via brokers. Starr Insurance Companies Privately held global specialty insurer based in New York; the No. 1 U.S. writer of commercial fire and aircraft insurance and No. 2 in ocean marine.