Voyage Policies

Voyage Policy: What it Means and How It Works

A voyage policy (also called marine cargo insurance) is a trip-specific insurance contract that protects a shipper’s cargo against covered losses during a single voyage. Unlike time-based marine policies, a voyage policy begins when the ship sails and ends when it arrives at its destination.

Key points

• Covers cargo (not the ship) for a specified voyage.
• Commonly used by exporters who ship occasionally or in small quantities.
• Remains valid throughout the voyage, including unexpected delays at sea.
• Does not usually cover loading and unloading unless explicitly added.

Who uses a voyage policy

Voyage policies suit businesses that ship infrequently or have small, discrete consignments. Regular shippers and large exporters typically prefer open cover (time-based) marine insurance, which covers all shipments within a set period.

What it typically covers

Voyage policies usually cover unforeseen, accidental losses such as:
* Damage from collisions or groundings
* Damage from storms and other natural perils
* Losses from certain delays en route (if specified)

Coverage specifics vary by contract and are recorded for the particular cargo and voyage.

Common exclusions

Most voyage policies exclude losses resulting from:
* Willful misconduct by the insured
* Ordinary leakage, wear and tear, or gradual deterioration
* Improper or inadequate packaging
* Labor strikes and related disruptions
* Acts of war and terrorist acts (often excluded unless optional cover is purchased)

Conditions for validity

For the policy to be enforceable, insurers typically require that:
* The vessel is seaworthy and suitable for the voyage
* The crew is competent and the ship fit to perform the journey

Practical considerations

• Loading and unloading: Voyage policies frequently exclude losses occurring during loading and unloading; separate or additional cover is often needed for those phases.
• Specificity: Because each policy applies to a particular cargo and voyage, all voyage and cargo details should be clearly recorded in the contract.
• Unexpected delays: Coverage usually continues for unforeseen delays during the voyage (e.g., weather or port congestion) unless the policy states otherwise.

When to consider additional coverage

Consider endorsements or separate policies to cover:
* Damage during loading/unloading
* War, strikes, or terrorism risks if not included
* Packaging liability or coverage for wear-and-tear exclusions, where available

Summary

A voyage policy is a useful, voyage-specific form of marine cargo insurance for occasional shippers. It protects cargo against many accidental perils during transit but typically excludes loading/unloading periods and various foreseeable or illicit causes of loss. Shippers with frequent shipments or broader coverage needs should compare voyage policies with open cover options and consider additional endorsements where necessary.