Marine cargo insurance: War and strikes risks

Political tensions have increased globally in recent years and are likely to remain.

As a result of these tensions and a challenging insurance market, many marine cargo insurers have reviewed if they are prepared to continue to provide war and strikes coverage for shipments to/from areas considered at a higher risk and if they should charge a separate or higher premium for providing the coverage.

Most policies give marine cargo insurers the right to cancel coverage for war and strikes risks at any time, although they usually will reinstate the coverage for additional premiums. But in areas of high tension — such as the Gulf region of the Middle East — the cost can vary significantly.

Our solution

Marsh Specialty’s Marine, Cargo & Logistics practice has an insurance product designed to provide insurance coverage for war and strikes risks.

The policy — which is backed by Lloyd’s syndicates and company insurers — can provide up to US$250 million of capacity for product onboard any one vessel or conveyance. The capacity can be bound by the agreement of one insurer.

The insurance product is designed to:

• Secure an alternative pricing proposal for clients, particularly those with large volume/value of shipments.
• Remove the marine cargo insurer from insuring war and strikes risks where they do not wish to do so.