Protect the goods, not just the journey

Shipping goods to, from, or through Iran can involve several carriers, customs procedures, temporary storage, and transfers between sea, road, rail, or air transport. A cargo policy should match that complete journey, not simply the ocean leg.

The right starting point is straightforward: identify who bears the risk under the sales contract, describe the goods accurately, agree the insured value, and obtain written confirmation of the route and cover before transit begins.

This guide explains common international cargo insurance principles, including the 2009 Institute Cargo Clauses. The issued policy, endorsements, applicable law, and underwriting acceptance determine actual coverage. It is not a promise that every shipment or route can be insured.

Why carrier liability is not enough

A shipping line, airline, road carrier, or freight forwarder is not automatically responsible for the full commercial value of lost or damaged goods. Liability can depend on the cause of loss, applicable law, contract terms, notice requirements, and limits based on weight or packages.

Cargo insurance is a separate contract covering your insured interest in the goods. A valid claim still depends on an insured loss occurring during the covered transit, supporting evidence, and compliance with the policy. It does not turn every transport problem into a payable claim.

Do not confuse these policies

• Cargo insurance: protects the insured goods against covered physical loss or damage.
• Carrier or forwarder liability insurance: protects the transport provider against its covered legal liability.
• Hull and machinery insurance: protects the vessel itself, not your shipment simply because it is aboard.

Choose the right cargo cover

Institute Cargo Clauses (A), (B), and (C) offer different coverage structures. Clause (A) is broad all-risks cover subject to exclusions. Clauses (B) and (C) cover specified perils, with (B) broader than (C). Always check the edition and any amendments shown in your policy.

Match cover to the cargo

For electronics, fragile finished goods, or high-value machinery, discuss Clause (A) and any cargo-specific restrictions. For bulk commodities, a narrower clause may be commercially acceptable, but assess contamination, wet damage, shortage, and handling exposures before deciding. The cheapest premium is not necessarily the best fit.

Clause (C) is not “total loss only.” It can respond to partial damage caused by a covered named peril. Likewise, a policy described as “total loss” is not automatically equivalent to Clause (C).

Read more about the wording on our Cargo Insurance Clauses page. You can also browse the site’s A, B, and C cargo clauses comparison; always resolve coverage questions against the actual clause wording and policy endorsements.

Understand the exclusions before comparing prices

• Packing and preparation: inadequate packing can exclude a loss where the wording’s conditions apply. Container stowage may count as packing.
• Inherent vice and ordinary deterioration: the natural characteristics of the goods, ordinary leakage, normal weight loss, and wear are not the same as an insured accident.
• Delay: lost sales, late-delivery penalties, and damage caused by delay are generally excluded under standard clauses, even when an insured peril caused the delay.
• War, strikes, riots, and terrorism: base clauses exclude relevant risks. Separate extensions may be available, with their own limits, duration, cancellation provisions, and underwriting conditions.
• Special cargo risks: refrigeration breakdown, temperature variation, rust, electrical or mechanical derangement, and contamination require careful review rather than assumptions.

Plan the complete journey

For an import arriving through a southern port and continuing inland, or a transit shipment continuing through Iran to another country, declare each intended stage. Do not assume that naming the port automatically includes the final warehouse or cross-border delivery. For a service-focused overview, see insurance solutions for international cargo movements connected to Iran.

1. Map the route: collection point, departure port or airport, transshipment points, Iranian entry point, inland legs, border crossings, and final destination.
2. Disclose the cargo: quantity, value, condition, packaging, dimensions, and any dangerous, fragile, perishable, or used-goods characteristics.
3. Identify storage: expected customs dwell time, consolidation, bonded storage, and any storage for distribution rather than ordinary transit.
4. Agree changes: notify the insurer promptly if the destination, route, carrier arrangement, or transit conditions change.
5. Check practical claims support: obtain the nominated survey contact, notification process, document requirements, settlement currency, and payment arrangements in writing.

Compliance and payment feasibility

Before contracting, have the insurer, broker, bank, and appropriately qualified advisers confirm the transaction’s eligibility under applicable sanctions, export controls, licensing requirements, and payment restrictions. Relevant parties, vessels, goods, destinations, and payment channels may need review. A policy does not authorize a prohibited transaction or guarantee that a premium or claim payment can be processed.

When does cover begin and end?

Under the standard 2009 marine transit clause, cover generally starts when the goods are first moved at the named origin warehouse for immediate loading to commence the insured transit. It continues during the ordinary course of transit and ends on the earliest applicable terminating event.

• Completion of unloading at the final warehouse or storage place named in the policy.
• Completion of unloading at another location chosen for storage outside ordinary transit, or for allocation or distribution.
• Use of a vehicle or container for storage outside the ordinary course of transit.
• Expiry of 60 days after completion of discharge from the overseas vessel at the final port of discharge.

The 60-day limit is not an automatic storage allowance. Cover may end earlier. Air, inland-only, war, and locally amended policies may use different provisions. Request any necessary storage or transit extension before existing cover ends.

Insured value, Incoterms, and quotation details

Agree the valuation basis and currency before shipment. A common contractual approach is 110% of the relevant CIF or CIP value, but the correct amount depends on the sales contract, banking requirements, and policy. The additional margin does not independently insure every lost profit or delay expense.

CIF and CIP are not the same

Under Incoterms® 2020, CIF retains Clause (C) or similar as the default minimum insurance level; the parties can agree broader cover. CIP calls for Clause (A) or similar cover, subject to the rule and any agreed variation. CIF is for sea and inland waterway transport; CIP can apply across transport modes.

The seller paying freight and insurance does not mean the seller bears transit risk until arrival. Confirm the rule, named place or port, and version in the sales contract. Buyers should review the actual insurance certificate, beneficiary or assignment provisions, insured value, and route rather than relying on the word “CIF.”

What to include in an inquiry

• Commercial or pro forma invoice and packing list.
• Precise goods description, value, currency, and new or used condition.
• Origin, destination, planned transit points, transport modes, and shipment dates.
• Incoterm with the named place and version; any letter-of-credit conditions.
• Packing method, container type, temperature requirements, and storage arrangements.
• Requested clause, war or strikes requirements, deductible preference, and relevant claims history.

A single-shipment policy may suit occasional movements. For recurring shipments, ask whether an open-cover arrangement is available and how declarations, limits per conveyance, excluded commodities, and reporting deadlines work. No standard rate fits every cargo or route. Explore types of marine cargo insurance policies, then use the cargo insurance request forms to prepare your inquiry.

If cargo arrives damaged: protect the goods and your claim

Prompt action and good evidence matter. Follow the policy’s reporting instructions and the applicable carrier notice deadlines; they may differ and can be short.

1. Make the situation safe and limit further loss. Take reasonable protective measures without putting anyone at risk. Seek instructions before significant repairs, disposal, or salvage sales where practicable.
2. Inspect and record. Photograph the goods, packaging, container, seals, labels, and visible damage. Record quantities and any temperature or handling data.
3. Note reservations on delivery. Describe visible damage or shortage on the delivery receipt. Avoid signing an unqualified clean receipt when damage is apparent.
4. Notify the insurer and carrier promptly. Obtain the claim reference and request survey instructions. Send written notice to responsible parties to preserve recovery rights.
5. Retain evidence. Keep damaged goods, packaging, seals, correspondence, invoices, and receipts for reasonable mitigation expenses.
6. Submit the requested claim file. Explain what happened, when it was discovered, the quantity affected, and how the claim amount was calculated.

Documents commonly requested

• Insurance policy, certificate, and relevant endorsements.
• Commercial invoice, packing list, and evidence of the insured value.
• Bill of lading, air waybill, road consignment note, or other transport record.
• Delivery receipt, shortage or damage report, photographs, and correspondence.
• Survey report where required, repair or replacement estimates, and quantified claim statement.
• Carrier notices and mitigation or salvage documentation, where relevant.

For a general average demand: notify the cargo insurer immediately and forward the adjuster’s documents. A contribution or security may be requested even if your own goods are undamaged. Do not assume release arrangements or cover are automatic.

Frequently asked questions

Your final pre-shipment check

Before releasing the goods, make sure you can answer these questions clearly:

• Who has the insured interest, and when does the sales contract transfer risk?
• Does the certificate describe the goods, value, currency, complete route, and destination correctly?
• Which clause and edition apply, and what do the endorsements exclude or change?
• Are loading, unloading, transshipment, inland transport, and anticipated storage addressed?
• Are war, strikes, temperature, used-goods, and special handling needs expressly resolved?
• What deductible and limits apply, and who must be notified if something goes wrong?
• Has the insurer confirmed binding, transaction eligibility, and practical payment arrangements?

Request a cargo insurance assessment

Share the cargo description, insured value, origin, destination, route, packing details, and expected shipment date. Ask for the proposed wording and conditions so you can compare the protection, not just the premium.

All insurance is subject to underwriting acceptance, applicable legal requirements, policy terms, and written confirmation of cover.

Further reading and reference wording

• International Chamber of Commerce: Incoterms® 2020 and CIF/CIP insurance differences
• Institute Cargo Clauses (A), 1 January 2009: full reference wording
• Supporting overview of Institute Cargo Clauses (A), (B), and (C)
• Cargo insurance clauses: additional information

Reference wordings explain general principles and do not replace your issued policy. Images in this article are AI-generated illustrations, not evidence of an insurer’s premises, staff, cargo, or operations.