Get matched
Learn

Marine cargo vs goods in transit insurance

Marine cargo insurance covers goods on international sea or air journeys, usually on the Institute Cargo Clauses, and can include the road legs at each end. Goods in transit insurance covers goods moved within Australia. Which one applies depends on where the goods travel and, for imports and exports, who carries the risk under the sale contract.

Written by COVRA · Updated · Sources

Get matched with a broker Take the free check
A truck carrying a shipping container past stacked containers and cranes at a port

The difference, side by side.

Both insure goods while they’re moving. The main difference is where the goods are going.

Marine cargo Goods in transit
Journeys Imports, exports and other international freight by sea or air, plus the road legs at each end1 Goods moving within Australia2. Some policies cover road journeys only3
What’s covered Usually the Institute Cargo Clauses: (A) covers all risks except those excluded, and (B) and (C) cover listed events1 Accidental damage, or listed events such as fire, flood, collision, overturning and hijacking. Theft can be an optional extra2, and one road policy pays for theft only after forced entry to a locked vehicle3
When cover ends At the final warehouse, or 60 days after the goods are unloaded from the ship, whichever comes first. One insurer adds up to 72 hours after the last unloading1 On unloading at the final warehouse, or 72 hours after unloading, whichever comes first. Storage outside the normal course of the journey isn’t covered2
General average Covered. One insurer pays it in full, even if the goods are underinsured1 One insurer’s policy covers it only for goods sent by sea or air2
How it’s sold For one shipment, or for a year of shipments1 For one journey, or for a year of journeys2, 4

General average is a sacrifice or expense made to save a ship and its cargo, such as fighting a fire, whose cost the shipowner and every cargo owner share5. Our marine cargo insurance guide explains it, with the clauses in more detail. Some policies cover both: NTI’s Combined Cargo covers transits “overseas and inland”1. Motor policies can include a little: CGU’s commercial motor cover pays up to $5,000 for goods carried in a vehicle of up to 5 tonnes6.

Incoterms: who carries the risk and who insures.

For imports and exports, the Incoterms rule in the sale contract says where the risk passes from seller to buyer, and whether the seller must insure.

Rule Risk passes to the buyer Insurance
EXW (Ex Works) When the goods are made available at the named place, not loaded7 Neither side has to insure8
FOB (Free On Board), sea only When the goods are on board the buyer’s ship at the port of shipment7 Neither side has to insure9
CIF (Cost, Insurance and Freight), sea only When the goods are on board the ship, even though the seller pays the freight7 The seller insures for the buyer, to at least Clauses (C)10
CIP (Carriage and Insurance Paid To) When the goods are handed to the seller’s carrier7 The seller insures for the buyer, to Clauses (A)10
DDP (Delivered Duty Paid) At the named destination. The seller also clears the goods for import7 Neither side has to insure11

Under all the rules, risk passes when the goods are delivered, so an Australian importer buying on FOB terms carries the risk of the sea voyage7. Under CIF, the seller’s cover must be at least 110% of the invoice value12.

What carriers pay if goods are lost.

Carriers limit their liability in their terms, often to far less than the goods are worth.

  • Consumer guarantees The Australian Consumer Law’s guarantees for services don’t apply to transporting or storing goods for the sender’s business. They still apply if the person receiving the goods isn’t a business13.
  • CouriersPlease Goods are “at all times” at the customer’s risk, any liability is capped at A$100, and “the Customer is responsible for insuring the goods”. Different limits apply to small business contracts14.
  • Team Transport Where the consumer guarantees don’t apply, liability is limited to $5,000 per incident15.
  • StarTrack Courier Its terms say it “neither offers nor arranges insurance”, and it’s liable only for gross negligence, fraud or wilful misconduct16.
  • Carriers’ add-ons StarTrack sells a Transit Warranty of up to $5,000 per consignment, at $1 per $100 of cover17. Australia Post includes up to $100 compensation on most services, and its Extra Cover, a “parcel protection service”, goes up to $5,000, or $500 for some services18, 19.
  • By sea A sea carrier’s liability is limited by law unless the goods’ value is declared before shipment and written into the bill of lading20. Our marine cargo guide has the sea and air limits.

If you carry other people’s goods.

Goods in transit usually covers your own goods. Couriers and transport operators cover customers’ freight under carriers’ policies.

  • Your own goods BizCover’s goods in transit covers “goods owned by you” moved by road in Australia, and lists third-party couriers carrying your goods as typically not covered3.
  • Customers’ goods NTI’s Carriers Cargo policy covers freight in transit for accidental damage, or for listed events with optional extras such as theft, loading and unloading, and temperature-controlled loads21.
  • Claims against you If you decline liability to the goods’ owner, the policy’s accidental damage option defends the claim, with legal costs up to $250,00021. In the wording that took effect on 1 October 2025, NTI removed its separate legal liability option22.
  • When transit ends In a 2025 AFCA decision, a fire damaged a client’s goods that had sat at a carrier’s premises for seven weeks to five months. AFCA found they were no longer in transit, so the carrier’s claim on its policy failed23.

In broker examples published by upcover, marine cargo cover starts from around $300, and some single shipments are priced at roughly 0.1% to 1% of the cargo’s value. Annual cover is quoted on the whole year’s shipping24. Our courier insurance and truck insurance guides cover the vehicles and the rules for carriers.

FAQ

Common questions.

What’s the difference between marine cargo and goods in transit?

Marine cargo insurance covers international sea and air freight, plus the road legs at each end, usually on the Institute Cargo Clauses. Goods in transit insurance covers goods moving within Australia.

What does goods in transit insurance cover?

Loss or damage to goods while they’re moved within Australia, either for accidental damage or for listed events such as fire, collision and overturning. Theft can be an optional extra, and some policies pay for theft only after forced entry to a locked vehicle.

Does goods in transit cover imports?

Only while the goods are moving within Australia. The sea or air journey is what marine cargo insurance covers.

Who pays insurance in FOB and CIF?

Under FOB, neither side has to insure, and the risk passes to the buyer once the goods are on board. Under CIF, the seller must insure for the buyer, to at least Institute Cargo Clauses (C) and 110% of the invoice value.

Is the carrier liable if my goods are damaged?

Often only up to a cap, such as A$100 in CouriersPlease’s standard terms or $5,000 at Team Transport. StarTrack Courier is liable only for gross negligence, fraud or wilful misconduct, and the consumer guarantees don’t apply to business freight.

Can I have both in one policy?

Yes. Some policies cover overseas and inland journeys together, such as NTI’s Combined Cargo, for one shipment or for a year.

Still have a question? A broker can talk it through with you.

Get matched with a broker

Talk it through with a broker.

This guide is general information. A licensed or authorised broker can look at your business and explain your options.

  • Free for businesses, with no obligation
  • One broker who works with businesses like yours
  • No calls from multiple insurers

Get matched with the right broker in a few simple steps

Tell us about your business and we’ll match you with a broker relevant to your enquiry. You’ll only be contacted by one relevant provider.

Step 1 of 3

You’ll be matched with a broker suited to your business. No multiple calls.
Your enquiry may be shared with licensed or authorised brokers to determine suitability. You will be contacted by a relevant provider.

By submitting, you agree to COVRA sharing your details with the broker who receives your enquiry. How COVRA works

Request Received

We’ve passed your enquiry on. A licensed or authorised broker will be in touch shortly.

Covers in this guide.

Our guides to what each cover generally does, what it costs and the rules that apply.

Marine & Cargo Insurance Truck Insurance Business Motor Insurance

Sources.

  1. Combined Cargo Product Disclosure Statement (NTI279B), NTI, 1 October 2025
  2. Inland Cargo Product Disclosure Statement (NTI280B), NTI, 1 October 2025
  3. Goods in Transit Insurance, BizCover
  4. Single Transit Product Disclosure Statement (NTI327B), NTI, 1 October 2025
  5. York-Antwerp Rules 2016, Comité Maritime International, 2016, amended 2022
  6. Business Insurance PDS, Section 12 Commercial Motor Vehicles, CGU, 1 May 2025
  7. Place of delivery and risk transfer, ICC Academy, 31 July 2025
  8. Ex Works (EXW) Incoterms 2020 rule, Trade Finance Global, 6 April 2026
  9. Free on Board (FOB) Incoterms 2020 rule, Trade Finance Global, 6 April 2026
  10. CIF and CIP Incoterms 2020 explained, ICC Academy, 7 October 2024
  11. Delivered Duty Paid (DDP) Incoterms 2020 rule, Trade Finance Global, 6 April 2026
  12. Cost, Insurance and Freight (CIF) Incoterms 2020 rule, Trade Finance Global, 6 April 2026
  13. Competition and Consumer Act 2010, Schedule 2 (Australian Consumer Law), section 63, AustLII
  14. Terms and Conditions of Carriage, CouriersPlease, 12 October 2023
  15. Conditions of Carriage, Team Transport, 1 November 2023
  16. StarTrack Courier terms and conditions, StarTrack, 15 July 2026
  17. Transit Warranty overview, StarTrack, 15 July 2026
  18. Compensation, Australia Post
  19. Domestic features and optional extras, Australia Post
  20. Carriage of Goods by Sea Act 1991, Schedule 1A, article 4, Federal Register of Legislation
  21. Carriers Cargo Insurance Policy (NTI424B), NTI, 1 October 2025
  22. Carriers Cargo Notice of Change (NTI424B, NTI425B, NTI442B), NTI, 2025
  23. Determination 12-24-101873, AFCA, 28 March 2025
  24. How much does marine cargo insurance cost?, upcover, 23 July 2026