Importing goods for the first time? You have probably checked the supplier, agreed on a price and arranged shipping.
But have you checked what happens if your goods arrive damaged or go missing during transit?
Marine cargo insurance helps protect your goods against covered loss or damage during transportation. Despite its name, it can cover shipments by sea, air or road, depending on the policy.
For importers, it is one part of a wider business insurance plan in the UAE.
Here is a simple checklist to follow before your first shipment.
1. Check Who Arranges the Insurance
Do not assume your supplier has insured the goods. Check your purchase contract and shipping terms.
Two terms you may see are:
CIF — Cost, Insurance and Freight: The seller arranges insurance, usually with a more limited default level of cover.
CIP — Carriage and Insurance Paid To: The seller arranges a broader default level of cover.
These are the default insurance arrangements under Incoterms® 2020. Your contract may specify different terms.
What to do: If the supplier provides insurance, request the certificate and policy wording. Check what is covered and how you would make a claim.
2. Describe Your Goods Clearly
Your insurer needs an accurate description of the shipment.
Prepare these details:
Type and quantity of goods.
Invoice value and currency.
Whether the goods are new or used.
Packaging method.
Collection point and destination.
Shipping method and expected departure date.
Tell your broker if the goods are fragile, perishable or need temperature control.
What to do: Use a specific description. For example, “glass lighting fixtures packed in wooden crates” is clearer than “general goods.”
3. Check the Whole Journey
Your goods may travel by truck, ship and truck again before reaching your premises.
Ask where the insurance starts and ends. Also check whether it includes:
Collection from the supplier.
Transport to the departure port or airport.
The international journey.
Temporary storage during transit.
Final delivery to your premises.
What to do: Share the full route with your broker. Ask about any limits on storage, unloading or delivery.
4. Read the Exclusions
“All risks” does not mean every loss is covered.
Ask your broker to explain the exclusions that matter for your shipment. Pay attention to packing, deterioration, delay, temperature changes, war and strikes.
Some policies offer extra cover for certain risks. For example, some UAE cargo products include extensions for faulty packing. Always check the actual policy wording.
What to do: Ask, “What could happen to these goods that this policy would not cover?”
For help with unfamiliar terms, visit our insurance glossary.
5. Confirm the Insured Value
Check how the value of your shipment will be calculated.
Ask whether the agreed amount includes:
The cost of the goods.
Freight charges.
Insurance costs.
Any other agreed amount.
Do not choose a lower value just to reduce the premium. Also, remember that the sum insured is not a guaranteed payment for every claim.
What to do: Confirm the value, currency and shipment limit before accepting the policy.
6. Understand the Deductible
The deductible, or excess, is the amount you pay towards an applicable claim.
For example:
| Claim example | Amount |
|---|---|
| Otherwise payable claim | AED 20,000 |
| Flat deductible | AED 2,000 |
| Payment before other adjustments | AED 18,000 |
Deductibles can depend on the goods, packaging and transport arrangements.
What to do: Compare the deductible and cover alongside the premium.
7. Confirm Cover Before Shipping
Arrange insurance early enough to protect the part of the journey you need covered.
A quote alone does not confirm insurance. Request written confirmation of acceptance and check the start date and time.
If your shipment has already left, tell your broker immediately. The insurer will decide whether it can offer cover and on what terms.
What to do: Obtain confirmation before the insured journey begins.
8. Inspect the Goods on Arrival
Arrange for someone to check the shipment when it arrives.
If goods are damaged or missing:
Take clear photographs.
Record visible damage or shortages on delivery documents.
Notify your broker or insurer promptly.
Keep damaged goods and packaging for inspection.
Follow instructions about surveys, repairs or disposal.
Keep your invoice, packing list, transport document and insurance certificate together. Ask about any separate deadlines for notifying the carrier.
What to do: Save the claims contact details before delivery.
Quick Checklist Before Dispatch
Confirm who arranges insurance.
Review any supplier-provided cover.
Describe the goods and packaging accurately.
Check the full insured route.
Review exclusions and extra cover.
Confirm the insured value and deductible.
Get written confirmation of cover.
Prepare for delivery inspection.
Frequently Asked Questions
Does marine cargo insurance cover air freight?
It can. Policies may cover goods travelling by sea, air or road. Check that your chosen policy includes your shipping method.
Do I need insurance if my supplier already provides it?
Check the supplier’s cover first. Review the insured value, route, exclusions and claims process. Ask your broker about any gaps before buying additional insurance.
Does “all risks” cover everything?
No. Exclusions, deductibles, limits and conditions still apply. Read the policy wording rather than relying on the name.
Can I insure goods after shipping?
Some insurers may consider goods already in transit, subject to conditions. Tell your broker when the shipment left and disclose any known loss or damage. Arranging cover before departure is preferable.
How much does marine cargo insurance cost in the UAE?
The cost depends on your shipment and the cover required. Request a quote using your cargo details, value, route and packaging information.
What documents might I need for a claim?
Common documents include the invoice, packing list, transport document, insurance certificate, delivery records and photographs. Your insurer may request more information.
Related Reading
Business Insurance in the UAE — explore cover for your company’s assets and operations.
Professional Indemnity vs Public Liability Insurance — understand two types of business liability cover.
Cyber Insurance for Small Businesses in the UAE — learn what to review before buying cyber cover.
Insurance Glossary — find simple explanations of common insurance terms.
Need Cover for Your First Shipment?
Before your goods leave the supplier, check that your insurance matches your cargo and its journey.
Contact InsurancePolicy.ae to discuss marine cargo insurance options. Share your goods description, shipment value, origin, destination and expected shipping date.
Cover is subject to insurer acceptance, policy terms, conditions, limits and exclusions.
