If your business ships goods domestically or internationally, protecting that cargo against loss or damage isn’t optional, it’s essential. QBE marine cargo insurance is one of the most recognised products in the Australian market, backed by a global insurer with deep roots in commercial coverage. But understanding exactly what a QBE policy covers, what it excludes, and how claims actually work requires more than a quick skim of a product brochure. The details matter, and they can determine whether a claim gets paid or denied.
At National Cover, we help Australian businesses navigate insurance decisions across motor, commercial, and marine transit coverage. We know that choosing the right cargo policy means understanding the fine print, not just the headline features. That’s why we’ve put together this breakdown: to give you practical, clear information you can actually use when evaluating your options.
This article walks through QBE’s marine cargo insurance in detail, from the types of cover available and key policy wordings, to common exclusions that catch businesses off guard and the step-by-step claims process. Whether you’re shipping a single consignment or managing freight as part of your daily operations, you’ll come away with a solid understanding of how QBE’s product works and what to watch for before you commit.
What QBE marine cargo insurance covers
QBE marine cargo insurance operates on a modular framework, which means the breadth of cover you receive depends on which policy wording and clause set you select. At the base level, QBE offers policies that align with the internationally recognised Institute Cargo Clauses, developed by the Institute of London Underwriters and widely used across the Australian market. These clauses form the backbone of most marine cargo products and give you a clear starting point for understanding what protection your shipment carries from origin to destination.
All Risks vs Named Perils Cover
The widest level of protection available is "All Risks" cover, typically aligned with Institute Cargo Clauses (A). Despite the name, this is not unlimited protection, but it does cover physical loss or damage to your goods from any external cause unless specifically excluded. That makes it the most appropriate choice when you’re shipping high-value or fragile goods where the range of potential hazards is difficult to predict in advance.
Below All Risks sit the narrower Institute Cargo Clauses (B) and (C). Clauses (B) cover a defined list of perils, including fire, explosion, vessel stranding, collision, earthquake, and water ingress from sea or river. Clauses (C) are the most restricted, covering mainly major casualty events such as vessel sinking, fire, or overturning of a land conveyance. Businesses shipping lower-value bulk commodities often opt for (C), while (B) suits goods with moderate exposure to a broader range of hazards.
Choosing the right clause set at the start of your policy is one of the most consequential decisions you’ll make, because getting it wrong can leave you with a large uninsured loss even when a claim seems straightforward.
Domestic and International Shipments
QBE writes marine cargo cover for both domestic and international freight movements, which matters if your business ships goods across Australian state borders as well as overseas. For domestic transits, cover typically attaches when goods leave the warehouse or supplier and remains in force through road, rail, or coastal shipping. For international cargo, the policy responds to sea, air, and multimodal movements, including any land legs that form part of the overall journey.
Your policy can be structured as an open (or floating) policy or a specific voyage arrangement. Open policies work well for businesses with regular or ongoing shipments, as they automatically cover each consignment up to an agreed limit without requiring a separate declaration for every individual movement. A voyage policy suits one-off or infrequent shipments where you know the route, the goods, and the full value before the journey begins.
What Else Standard Policies Typically Include
Beyond core transit protection, QBE policies commonly bundle in additional benefits that extend the usefulness of your cover without requiring separate endorsements. These additional inclusions carry real financial weight in practice:
- General Average contributions: cargo owners must contribute to shared maritime losses even when their own goods arrive undamaged, and this cover handles that exposure
- Sue and labour costs: reimburses reasonable expenses you incur to prevent or minimise a loss after an insured event occurs
- Forwarding charges: covers the cost of redirecting goods to their final destination when transit is interrupted by an insured peril
- Customs duty: where applicable, responds if goods are lost or destroyed and duty you’ve already paid cannot be recovered
Understanding these inclusions upfront prevents you from discovering gaps only once you need to lodge a claim.
What QBE marine cargo insurance usually excludes
Even with the broadest All Risks cover, QBE marine cargo insurance applies exclusions that can significantly narrow the protection you receive in practice. Understanding these before you ship gives you the chance to negotiate endorsements or arrange separate cover where gaps exist. The exclusions fall into two broad categories: those that apply across all clause sets without exception, and those that tend to surprise businesses when they actually lodge a claim.
Exclusions That Apply Across All Clause Sets
Every marine cargo policy, regardless of the clause set you select, carries a core set of standard exclusions that no insurer will accept without a specific written agreement. These are fundamental limits built into the product structure, not minor technicalities buried in the fine print.
The most common standard exclusions include:
- Inherent vice or nature of the goods: deterioration, mould, or decay that results from the goods’ own characteristics rather than an external cause
- Insufficiency of packing: loss or damage caused by packaging that is inadequate for the type of transit involved
- Deliberate damage by the insured: any loss caused intentionally by you or your agents
- Delay: financial losses caused by delayed delivery, even when the delay itself results from an insured peril
- War and strikes: unless you separately purchase War, Strikes, Riots and Civil Commotions (SRCC) extensions
Delay exclusions catch many businesses off guard because the goods may arrive physically intact, yet the commercial loss from missing a critical delivery window remains entirely uncovered under any standard cargo policy.
Exclusions That Catch Businesses Off Guard
Two exclusions that regularly lead to disputed or declined claims are inadequate packing and ordinary leakage or loss in weight. Insurers assess packing standards against what is reasonable for the specific mode of transport used, so goods packed adequately for road freight may not meet the threshold required for a sea voyage in a container exposed to heavy swell and extended movement.
Ordinary leakage, loss in weight, and wear and tear follow the same logic. These are treated as normal characteristics of certain goods during transit rather than insurable losses. If you ship liquids, bulk commodities, or goods with known shrinkage rates, raise this with your broker or insurer at the point of placing cover so that appropriate extensions can be considered before the first consignment moves.
When cover starts and ends during transit
Knowing exactly when your cargo policy attaches and terminates is just as important as knowing what it covers. A gap of even a few hours at either end of a journey can leave goods unprotected, and many businesses only discover this when a loss occurs at the start or finish of a shipment rather than during the main leg of transit.
The Warehouse-to-Warehouse Clause
Most QBE marine cargo insurance policies follow the warehouse-to-warehouse principle established under the Institute Cargo Clauses. Cover typically attaches the moment goods leave the warehouse or place of storage at the origin point and travel continuously toward the loading of the vessel or aircraft. From there, the policy remains in force throughout the main transit and continues until the goods are delivered to the final warehouse or storage location at the destination named in your policy.
The word "continuously" carries real weight here. If goods are diverted, stored temporarily for reasons unrelated to the transit, or held at an intermediate point that falls outside normal transit practice, cover can lapse before you realise it has.
When Storage at Either End Extends Beyond Normal Limits
The warehouse-to-warehouse clause includes time limits on storage at both the origin and destination. Under standard Institute Cargo Clauses, cover at the destination terminates 60 days after the goods are discharged from the overseas vessel, even if they haven’t yet arrived at their final warehouse. For domestic transits, your policy wording will specify its own period, so check this carefully.
If your goods regularly sit in a port facility, a bonded warehouse, or a third-party logistics hub beyond these time limits, you need to either extend the policy or arrange separate storage cover. Failing to address this leaves a window of uninsured exposure that is easy to overlook in day-to-day freight operations.
Deviation and Change of Voyage
Your policy is structured around an agreed transit route, and deviating from that route without prior notification to your insurer can void cover for the affected leg. If a carrier re-routes a vessel due to weather, port congestion, or commercial reasons, most policies apply a held-covered provision, meaning cover continues but you must notify your insurer promptly and accept any amended premium or conditions they apply. If you fail to notify, the held-covered protection no longer applies, and your claim may be reduced or refused on that basis alone.
How to set insured values, limits and excess
Getting your insured value, policy limits, and excess right at the start of a policy is not a formality. These three figures work together to determine how much you actually recover when a loss occurs, and underinsuring your goods or misunderstanding how your excess applies can reduce a claim payout in ways that feel arbitrary but are entirely contractual. With QBE marine cargo insurance, you have flexibility in how you structure these figures, but that flexibility comes with responsibility.
How to calculate the insured value of your goods
The standard approach to valuing cargo is to insure at cost, insurance, and freight (CIF), plus an additional percentage to account for anticipated profit and any extra charges associated with replacing the goods. A common convention is CIF plus 10%, which covers the commercial uplift you would otherwise lose if a consignment is destroyed in transit. If you ship goods with high resale margins or where replacement costs can spike quickly, you may want to increase that uplift to 15% or 20%.
Underinsuring cargo to reduce your premium is one of the most common and costly mistakes in freight operations, because average clauses in your policy can reduce any partial loss claim in proportion to the degree of underinsurance.
Whatever figure you settle on, document your valuation basis clearly in your policy declarations so there is no dispute about the agreed value when you lodge a claim.
Understanding policy limits and sub-limits
Most policies carry an any-one-vessel or any-one-conveyance limit, which caps your maximum exposure on a single shipment regardless of the total goods on board. If you consolidate large consignments into a single container or co-load freight with other cargo, check whether this limit is adequate for your highest-value shipment, not just your average one.
Some policies also apply sub-limits for specific goods categories such as electronics, jewellery, or refrigerated cargo. These sit beneath the main policy limit and can result in a significantly lower payout than you expected if you haven’t reviewed them before shipping.
How excess works on cargo claims
Your policy excess is the amount you absorb before the insurer responds. On cargo policies, excess can apply in different ways, and the structure matters:
- Per-claim excess: applies separately to each individual loss event
- Per-event excess: one excess amount covers all losses arising from a single incident
Clarify which basis your policy uses before you bind cover. A per-event excess becomes particularly significant when a single shipping incident generates multiple separate claims across different consignments, as your total out-of-pocket exposure is far lower than it would be under a per-claim structure.
How to make a claim and avoid common delays
When you suffer a cargo loss, the actions you take in the first 24 to 48 hours have a direct impact on how quickly your claim is resolved and whether it is paid in full. QBE marine cargo insurance policies, like most commercial marine products, impose obligations on the insured to act promptly and preserve evidence, and failing to meet those obligations gives insurers legitimate grounds to reduce or reject an otherwise valid claim.
Notify your insurer immediately after a loss
The first step is to notify QBE or your broker as soon as you become aware of a loss, even if the full extent of the damage is not yet clear. Most policy wordings require prompt notification and specify that you must preserve your rights of recovery against any third party who may be responsible, such as the carrier or stevedore. If you accept delivery without noting a reservation of rights, you can inadvertently waive the insurer’s ability to pursue a recovery action, which weakens your overall claim position.
Signing a clean delivery receipt for damaged goods is one of the most damaging mistakes you can make at the point of delivery, because it removes a key piece of evidence your insurer needs to pursue the carrier.
Document the damage before moving goods
Before you move, unpack, or dispose of any damaged goods, photograph and video the shipment in its received condition, including packaging, container seals, and any visible damage to the outer packaging or container itself. Send a formal written notice to the carrier within the time limits specified by the relevant carriage convention, which for sea freight under the Hague-Visby Rules is typically three days for apparent damage.
Retain all documentation related to the shipment, including the bill of lading, commercial invoice, packing list, and any survey reports arranged by the carrier or port authority. Gaps in this documentation chain are the single most common reason cargo claims take longer than necessary to settle.
What slows down cargo claims
Claims stall for predictable reasons: late notification, missing shipping documents, or inadequate evidence of the goods’ condition before shipment. You can address all three by keeping a standard pre-shipment documentation checklist and briefing your logistics team on what to capture at the point of delivery. A clean, well-documented claim file moves through the assessment process far faster than one assembled after the fact from partial records.
Clauses and extensions that often matter most
Standard Institute Cargo Clauses give you a solid foundation, but several additional clauses and extensions can make the difference between a policy that fits your operation and one that leaves you exposed in ways specific to how your business moves goods. With QBE marine cargo insurance, these extensions are typically available by endorsement, and selecting the right ones at policy inception costs considerably less than discovering you needed them after a loss occurs.
War and Strikes, Riots and Civil Commotions (SRCC) Extensions
Most standard cargo policies exclude war and strikes as a matter of course, which means goods moving through politically unstable regions or ports with a history of industrial action carry an uninsured exposure unless you add these extensions separately. The War extension responds to losses caused by war, civil war, capture, and similar hostile acts, while SRCC cover adds protection against strikes, lockouts, labour disturbances, riots, and civil commotions that result in physical loss or damage to your cargo.
If your supply chain touches any port or corridor with active labour disputes or geopolitical tension, adding both extensions at policy inception is far more cost-effective than trying to negotiate cover mid-transit.
Both extensions carry their own geographic restrictions and cancellation provisions, so review the specific wording carefully before shipping into higher-risk areas.
Refrigeration Breakdown Cover
If you ship temperature-sensitive goods such as fresh produce, pharmaceuticals, or perishable food products, standard cargo clauses do not automatically respond to losses caused by refrigeration breakdown. You need a specific refrigeration breakdown extension that responds when the cooling system on a vessel or transport unit fails and causes spoilage to your cargo during transit.
When arranging this extension, confirm that it covers both the transit leg and any storage periods that form part of the overall journey, particularly when goods pass through cold-chain hubs between loading and final delivery. Some extensions apply a separate sub-limit or excess for temperature-sensitive goods, so check those figures before binding cover.
Contingency and Seller’s Interest Cover
Where you sell goods on CIF terms, buyer’s interest cover typically falls to the purchaser once risk passes. However, if the buyer’s policy fails to respond or they have arranged inadequate cover, you as the seller can face a real financial loss with no policy to call on. Contingency cover protects your interest in those scenarios by responding where the primary buyer’s policy does not, which matters most when you trade with buyers whose insurance arrangements you cannot verify or control.
When you need other insurance alongside cargo cover
QBE marine cargo insurance protects your goods during transit, but it does not cover every financial exposure your business faces when something goes wrong in a supply chain. Several related risks sit entirely outside the scope of a cargo policy, and relying on cargo cover alone leaves gaps that only become visible after a loss. Identifying those gaps before you need to claim is far cheaper than discovering them mid-incident.
Carrier’s Liability and Why It Doesn’t Replace Your Own Policy
Carriers hold their own liability coverage, but their exposure is capped by international conventions such as the Hague-Visby Rules for sea freight and the Montreal Convention for air freight. These caps are set in units of account and based on package count or gross weight, not the commercial value of your goods. If your shipment is worth significantly more than the applicable cap, the carrier’s policy will only compensate you up to that ceiling, leaving you to absorb the remainder without a cargo policy in place.
Never assume that the carrier’s liability coverage will make you whole after a loss, because the gap between their maximum payout and your actual goods value is often substantial.
Pursuing a carrier for damages is also slow. Disputes over liability can take months to resolve, whereas your own cargo policy responds directly once a valid claim is submitted.
Product Liability for Importers and Distributors
If your business imports goods and sells them into the Australian market, you carry potential liability for any harm those products cause to third parties after delivery. Cargo insurance responds to physical loss or damage during transit but does not extend to claims arising from product defects or injury once goods reach the end buyer. A separate product liability policy closes that exposure and is particularly important for businesses importing goods manufactured outside Australia where quality control is harder to verify.
Business Interruption When Supply Chain Delays Hit Revenue
A significant cargo loss can disrupt your production schedule or stock availability in ways that ripple well beyond the value of the lost goods themselves. Business interruption insurance responds to revenue losses caused by events that prevent normal trading, including those triggered by supply chain failures. Your cargo policy replaces the goods, but it does not compensate you for the income you lose while waiting for replacement stock to arrive and your operations to return to normal. Reviewing both policies together gives you a far clearer picture of your actual risk exposure.
Key takeaways and next steps
QBE marine cargo insurance gives Australian businesses a structured, well-recognised framework for protecting goods in transit, but the policy only works as hard as the decisions you make before shipment. The clause set you select, the insured value you declare, and the extensions you add at inception all determine what you actually recover when a loss occurs. Leaving those decisions to default settings often means underinsurance, coverage gaps, or delayed claims.
Your next step is to review your current freight arrangements against the areas covered in this article: clause selection, exclusions, transit attachment, and any related exposures that sit outside your cargo policy. If you move goods regularly by road, check whether your cargo cover and your vehicle coverage are both adequate for the way your business operates. The team at National Cover can help you assess your current position and identify any gaps worth addressing before your next shipment moves.
