A valuation clause in a marine insurance policy establishes the insured value of the goods being transported. It contains a fixed basis valuation – agreed upon by the policyholder and the insurance company – which determines how much is payable in the event of a covered loss or damage.

This is what makes marine insurance different to other (non-marine) forms of insurance. Most marine insurance policies are written on an ‘agreed value’ basis, meaning they’re based on a predetermined valuation of the items being insured – cargo, vessels, machinery, etc. In the event of damage or loss, the policyholder is paid the agreed value with no deduction for depreciation. Other insurance policies, such as car insurance, are typically written on the basis of market value.

International Commercial Terms (Incoterms) are a set of pre-defined commercial terms developed by the International Chamber of Commerce. They’re designed to communicate the tasks, costs and risks associated with the global transportation of goods, and provide rules and guidance to importers, exporters, insurers, and just about everyone involved in trade.

There are Incoterms that apply to any mode of transport and terms that are specific to ‘sea and inland waterway’ transport. These terms have a direct impact on your insurance needs and obligations, and it can get complicated. You should talk to a specialist marine insurance broker to understand how Incoterms impact your marine insurance policy.

For marine, cargo and logistics companies, the threat of cybercrime and cyber-attack is very real and very common. Unfortunately, there is no single marine insurance policy or fool proof solution that responds to every risk. Some insurers may offer cyber-crime extensions to existing marine insurance policies, but many of these provide insufficient protection. A stand-alone cyber insurance policy is always recommended in addition to a marine insurance policy