For machinery, the usual choice is all-risks marine cargo insurance on Institute Cargo Clauses (A), covering the goods from the factory to your site. Insure the full value plus a margin, and make sure the policy covers the inland legs and any loading by crane.
Carrier liability is not a substitute. Shipping lines limit their liability by weight or package under international conventions, and those limits are often far below a machine's value.
Who buys the cover
Your Incoterm decides this. Under FOB or FCA terms, risk passes to you early, so you arrange insurance. Under CIF, the seller must buy cover, but Incoterms 2020 only require the minimum Institute Cargo Clauses (C). Under CIP, the seller must buy the wider Clauses (A) level by default. Both rules can be changed in the contract.
Seller-arranged cover also names who can claim. Make sure the certificate is assigned or endorsed to you, and that claims are payable in your country, in a currency you can use. If you rely on seller-arranged cover under CIF, ask to upgrade it to (A) or buy your own top-up. Our guide on FOB, CIF or DAP explains where risk passes under each term.
What to check in the policy
- The clauses should be Institute Cargo Clauses (A), or the local equivalent, which cover all risks except named exclusions.
- The sum insured is commonly the CIF value plus ten percent, to cover extra costs after a loss.
- The cover should run warehouse to warehouse, including truck transport in India and at destination.
- On-deck carriage, common for flat racks and break-bulk, should be expressly covered, because standard terms may restrict it.
- Exclusions for insufficient packing matter, because poor packing can void a claim, so packing standards protect your insurance too.
- Loading, unloading and installation risks at site may need separate cover, such as an erection all-risks policy.
General average and claims
Regular importers often take an open cover, an annual policy that insures every shipment declared under it. It saves arranging cover each time and avoids gaps when a shipment is forgotten.
If a ship meets an emergency and the master sacrifices cargo or incurs costs to save the voyage, all cargo owners share the cost. This is general average. Without insurance, your machine can be held until you provide security. Good cargo insurance handles this for you.
If damage occurs, note it on the delivery receipt, take photographs, keep the packing and call the surveyor named in the policy before repairs. Our guide on checking a machine on arrival covers the steps. Premiums depend on value, route, cargo type and packing, so ask your insurer or broker for a quote.
Next step
We document packing and loading with photographs, which supports a claim if anything goes wrong. To plan your shipment, book a free sourcing review.