Marine Insurance

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When you are involved in the business of exporting or importing goods from multiple countries. You know the financial implications of losing the cargo in transit due to any reason whatsoever. In the worst-case scenario, loss of goods because of theft, an overturning of the cargo vessel, etc. can even lead a company to dissolution, which is where the concept of commercial insurance comes in between. It provides warehouse insurance coverage for the goods in transit till the cargo reaches its destination.

But if you closely look at the journey of goods during transit, it starts from the manufacturing house, then reaches an intermediate warehouse owned, managed, or hired by the transporter before the goods are loaded on the vessel, followed by the warehouse delivery at the destination. At a surface level, the risk related to the goods in transit persists even when the goods are stored or kept in the warehouses.

Do you know whether your marine insurance policy also works as a warehouse insurance policy? Let’s find out.

What is Warehouse-to-Warehouse Insurance?

Warehouse-to-warehouse insurance is basically one of the types of marine insurance that provides cargo coverage during storage at one warehouse or the other during transit. As the name suggests, this policy extends the protection of goods from the warehouse where the shipment originates to the one where it terminates.

In the market, you will either find a stand-alone warehouse policy or an additional clause/provision to the marine policy. Separate coverage is quite essential to insure your goods before and after the transit.

Warehouse Insurance Importance Explained

The need for warehouse insurance can be realized from the fact that warehouses offer both short-term and long-term storage for all types of cargo. Depending on the business needs, the storage duration may vary from a day to a few months or more. Additional services offered at the warehouse include packing, pickup, cargo delivery, and unpacking of goods.

If the goods are lost or damaged while in the custody of the warehouse provider. You could face a loss worth thousands of dollars or more. This is where warehouse insurance, as a part of freight insurance, comes as a savior to provide protection while the goods are kept at an authorized warehouse.

The right type of insurance policy can keep your business protected from unforeseeable events. That may occur while the goods are in transit.

You should also know that:

  • Commercial insurance may provide one-time coverage or an open policy that covers all shipments within a specific period. Whenever shipping is involved, there are standards for commercial insurance coverage ownership. In some cases, they can be segmented by location, destination, or warehouse to warehouse. Hence, it is important that you check the clauses of a insurance policy to understand the extent of coverage.
  • The warehouse-to-warehouse insurance clause may also define the upper limit on the amount payable in case of any mishappening. Check that limit beforehand as advised.

Real-World Examples to Help You Understand Insurance

Consider a chip manufacturing company in China that manufactures and sells chips used in electrical devices to businesses all over the world. Since most of the consignments containing different types of chips are quite expensive. The chip company partners with an insurer to buy commercial insurance coverage for the goods. While they are in transit to reach different buyers.

With a warehouse insurance policy, the chip company would pay a certain premium to insure the chip consignment for any loss or damage from the time it leaves the manufacturer’s warehouses until it reaches the buyers’ warehouses. This will also include intermediate transportation via truck, boat, or any other mode from ports to the buyer’s warehouse.

Commercial insurance, being an important component of your supply chain. It plays a vital role in managing the distribution of goods you produce. In large-scale distribution, sellers often take responsibility for insurance and shipping costs, which is where insurance is quite important.

Buy Warehouse Insurance from SecureNow Today

Commercial insurance purchase requires a thorough understanding of various facets involved. That’s why comparing different policies and their clauses is a must. With SecureNow, a leading insurance broker in India selling B2B insurance products, you can compare and buy marine insurance online. For more details, click here.

About The Author


MBA Insurance and Risk

With extensive experience in the insurance industry, Simran is a seasoned writer specializing in articles on marine insurance for SecureNow. Drawing from 5 years of expertise in the field, she possesses a comprehensive understanding of the complexities and nuances of marine insurance policies. Her articles offer valuable insights into various aspects of marine insurance, including cargo protection, hull insurance, and liability coverage for marine-related risks. Renowned for their insightful analysis and informative content, Simran is committed to providing readers with actionable information that helps them navigate the intricacies of marine insurance with confidence.