Marine Insurance

Marine Insurance is insurance in international trade that provides coverage for losses that goods may suffer during maritime transport. Its coverage typically includes natural disasters, accidents, and extraneous risks, such as Free from Particular Average (FPA), With Particular Average (WPA), and All Risks. Usage scenarios: When the buyer and seller agree that one party is responsible for arranging insurance (e.g., under CIF or CIP terms, the seller must insure), the insurance coverage, insured amount, and claim settlement location must be clearly specified. Precautions: When insuring, choose appropriate coverage based on the nature of the goods, shipping route, and risks; the insured amount is generally 110% of the invoice value; pay attention to exclusions in the insurance clauses. Differences from other terms: Marine insurance differs from transport insurance (which may cover multiple modes of transport) and from shipowner's liability insurance (which protects the shipowner rather than the cargo owner). Foreign trade practitioners should understand the types of insurance policies (e.g., insurance policy, insurance certificate) and the claims process to ensure timely compensation in case of cargo damage.