Ocean Marine Insurance for California Importers & Exporters.

Warehouse-to-warehouse coverage protects cargo from origin warehouse to final destination warehouse — including loading, ocean transit, port handling, customs clearance, and final delivery. Without warehouse-to-warehouse, cargo might be covered only during the actual ocean voyage, leaving gaps at the start and end. Modern ocean marine cargo policies routinely include warehouse-to-warehouse, but we confirm the specific terms for each policy.

General average is an ancient maritime principle — when a captain takes intentional action to save the ship and cargo (like jettisoning cargo, putting into emergency port, fighting a fire), all shippers share the cost of the loss proportionally. A modest cargo shipper could face significant general average contributions if a major incident occurs on a ship carrying their goods. Ocean marine cargo policies cover general average contributions; without coverage, shippers face direct out-of-pocket exposure for events that didn't directly damage their own cargo.

Standard ocean marine cargo and hull policies typically exclude war risks (capture, seizure, hostile acts) and strikes (riots, civil commotion, terrorism). Separate war risk and strikes coverage is widely available and often essential — particularly for routes through politically sensitive areas, ports with labor disputes, or vessels in conflict zones. We confirm war and strikes coverage based on actual trade routes and operational realities.

Incoterms (International Commercial Terms) define which party — buyer or seller — is responsible for cargo at each point in the supply chain, including who bears the risk and who arranges insurance. Different Incoterms (CIF, FOB, EXW, DAP, etc.) place insurance obligations differently. Understanding which party should carry insurance for which portion of the journey is critical to avoiding coverage gaps. We help clients understand Incoterms implications and structure coverage accordingly.

Hazardous materials (chemicals, lithium batteries, perishables, refrigerated goods, fine art, machinery requiring special handling) often require specialty cargo coverage with specific endorsements. Some carriers won't write specific hazmat categories; others require detailed packaging and handling protocols. We coordinate with specialty cargo markets for unusual or sensitive commodities.

Generally no — ocean marine policies typically exclude losses caused by inadequate or improper packaging. Cargo must be packaged appropriately for ocean transit (different from air or land), including marine-grade containers, proper internal bracing, and protective measures for the specific commodity. Improperly packaged cargo that's damaged in transit may face denied claims. We help importers and exporters understand packaging requirements and document compliance.

Hull and machinery (H&M) covers the vessel itself — structure, engines, equipment, propulsion. It applies to vessel owners (operators of ships, fishing boats, commercial vessels), not cargo owners. H&M is significantly more complex than cargo coverage, involves higher limits, and requires specialized underwriting. California has significant H&M markets for fishing fleets, cargo operators, and recreational/charter vessels. We work with specialty H&M markets when vessel ownership is involved.

Open cargo policies provide automatic coverage for all shipments made during the policy period (typically annual), with declarations or reports of individual shipments. They're significantly more cost-effective for regular shippers. Single-shipment (or 'special') cargo policies cover specific named shipments. We help regular shippers transition to open cargo policies for cost efficiency and coverage consistency.