The Inchmaree Clause and how it protects Your Cargo

In 1884, a ship containing extensive amounts of cargo called the Inchmaree suffered extensive cargo damage. This was not the result of a crash, a sinking ship, or even war-related damage. The cargo on the Inchmaree was damaged thanks to the breakdown of internal pumps, and the cargo was flooded and destroyed.

The owners of the cargo submitted claims to their insurance companies. However, a British court ruled that the accident was not caused by “perils of the sea” and therefore was not covered by any of the standard policies the cargo owners owned. As you can imagine, the cargo owners were devastated by this ruling. They applied pressure on cargo insurance policy issuers, resulting in the Inchmaree Clause being added to most marine cargo insurance policies. This clause states that any accidents that occur that are not related to “perils of the sea” but are directly related to the shipping of the cargo are indeed covered.

This means that in your marine cargo insurance policy, your coverage now includes damage or loss caused by the following:

  • Breakage of the ship’s drive shafts
  • Bursting of the ship’s boilers
  • Unseen hull defects
  • Unseen machinery or auxiliary equipment damage
  • Errors in navigation
  • Negligence on the part of the ship’s captain, officers, engineers, crew, pilots, etc.

Marine Cargo Insurance is critical to have when shipping your cargo across any body of water by ship. Keep in mind that most policy offerings are not typically regulated by local government agencies. Getting a marine cargo insurance quote requires more scrutiny than simply taking the cheapest policy offered.

When you are seeking marine cargo insurance quotes, you should verify that the policies offered include the Inchmaree Clause. The good news is that it is very unlikely that any policy offered today would not.

Another important detail when considering marine cargo insurance is the transfer of insurance and risk once the goods are delivered to the various endpoints. You need to make sure that your policy includes the risk that shifts to the ship at the loading port, as well as the point at which the insurance coverage and responsibility transfers at the depot, truck, plane, or train. It is critical to consider the entire path of the good when determining the best marine policy, and when getting your marine cargo insurance quote.

Finding the most complete coverage at the best price is what you need when it comes to marine cargo insurance quotes! Use to begin the process of finding the best insurance policy for your cargo.