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Parametric coverage for cargo delay

Marsh’s marine cargo delay insurance helps you protect your time-critical cargo and recover financial, business interruption, and other consequential losses.

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Enhanced protection

Parametric coverage enhances the protection provided by traditional cargo insurance by including an element of delay coverage that was previously challenging to insure.

Parametric and artificial intelligence

Using an artificial intelligence-assisted algorithm, we can deliver instant marine cargo delay coverage quotes to time-critical shippers and cargo owners, right when you need it the most.

Expedited claims

Efficient, automated, and transparent claims processing based on a triggering event with approved losses generally paid in as little as 48 hours and within seven days of a delay being detected.

In today’s fast-paced and interconnected economy, many organizations depend on the timely delivery of goods to maintain operational efficiency. Delayed cargo shipments can have far-reaching implications, including significant financial and reputational challenges. Aside from disrupting business operations, delays can give rise to contractual complexities and lead to even greater challenges when the shipment contains perishable items.

And while conventional cargo insurance typically covers physical loss or damage to goods, it often excludes expenses directly related to delayed cargo.

Marsh’s parametric marine cargo delay insurance can complement your existing policies, providing coverage for losses that were previously considered uninsurable. Based on a cutting-edge AI-assisted algorithm developed by InsurTech Otonomi, our parametric marine cargo delay insurance provides you with near-instant quotes to help protect your next shipment.

Comprehensive coverage for your cargo

Our parametric coverage is designed to offer protection against losses stemming from cargo delays. This innovative insurance solution safeguards against a variety of potential losses , including:

  • Business interruption. Financial assistance to alleviate the potential effects of operational disruptions.
  • Consequential damages. Compensation for losses incurred as a result of delayed shipments.
  • Commodities’ price loss. Protection against a decline in the market value of your products due to a delay.
  • Additional costs. Coverage for unforeseen expenses arising from cargo delays.

Our parametric insurance solution utilizes cutting-edge technology to deliver near-instant quotes. The policy is activated by a delay in the transit time.

How does Marsh’s marine cargo delay insurance work?

  1. Activation: Your policy becomes active once your cargo is loaded onto the vessel and departs the port of origin.
  2. Trigger: If the actual time of arrival exceeds the agreed threshold —either six, eight, or 10 days — your policy automatically triggers.
  3. Payment: Claims are processed swiftly, with payments typically made within seven days of a delay being detected, after you acknowledge having suffered a loss that is equal or greater than the potential payout.

Our parametric coverage can be purchased to cover shipments to both the US and international destinations. We offer both per-shipment and annualized contract options, allowing you to select the option that best fits your organization’s needs. 

The policy is subject to standard exclusions, including cyber risks, war and terrorism, sanctions, communicable disease, strike, insured misconduct, dishonesty or misrepresentation, rerouted shipments, and illegal or hazardous cargo.

Frequently asked questions

Marsh's parametric marine cargo delay insurance is a specialized insurance product designed to provide financial support in the event of delays in the shipment of cargo. This insurance offers coverage for various types of losses, including business interruption, consequential damages, and commodities’ price loss. This parametric approach allows for a streamlined claims process, providing businesses with timely compensation for their losses, with payments typically made in as little as 48 hours.

Regardless of how or where you ship your goods, delays can significantly impact your operations, reputation, and finances. Whether caused by natural catastrophes, including severe weather events, operational disruptions, or other challenges, delays can be both disruptive and costly and losses have been mostly uninsurable. Purchased as an add-on to your existing policies, Marsh’s parametric marine cargo delay insurance provides:

  • Coverage for gaps. Many businesses rely on carrier liability coverage to protect their shipments, but this typically excludes delays. While traditional cargo insurance generally focuses solely on physical damage, our parametric solutions address the financial risks associated with delays, including non-damage business interruption and consequential damages.
  • Tailored coverage options. Because businesses’ requirements are unique, we offer flexible coverage limits, ranging from US$1,000 to US$250,000, allowing you to choose the limit that best fits your needs. Whether shipping perishables that may spoil or facing penalties for delays, our policy can be customized to provide you with optional protection.
  • A simplified claims process. The policy streamlines the claims process. We use third-party API data to monitor delays and your policy is automatically triggered once a delay is detected. Our streamlined claims process means that you will receive a payment within seven days  after acknowledging a qualified loss. Note that the insurer reserves the right to audit the loss after payment is made and recover any excess.

The policy is activated once the cargo is loaded onto the vessel and departs from the port of origin. If the actual time of arrival exceeds a predetermined threshold — set at either six, eight, or ten days — the policy is automatically triggered, ensuring for prompt financial support to the insured party.

In addition to our marine cargo delay insurance, we offer a comprehensive coverage for time-sensitive cargo shipped by air. Marsh's parametric air cargo delay policy addresses the financial losses, business interruption risks, and consequential damages that can arise from delays in air transit. Also operating on Otonomi’s algorithms, your policy becomes active once your cargo is loaded onto the aircraft and departs its destination. If the actual time of arrival exceeds the agreed threshold — which can be set at three, six, or 12 hours — your policy is automatically triggered. Limits range from US$1,000 to US$250,000, depending on your specified needs.

The claims process is designed to be efficient and transparent. Once a delay is detected through third-party API data, the policy is automatically triggered. Payments are typically processed within seven days after the insured acknowledges a loss that meets or exceeds the claim compensation.

You may use your Master Bill of Lading (MBL) along with your four-digit carrier code. Alternatively, you can also submit your container ID along with your four-digit carrier code.

Why Marsh

A comprehensive approach to risk is critical to success in the logistics and shipping industry. As a long-time partner of many of the world's best-known and complex shipping, logistics, and transportation companies, Marsh can help you identify, quantify, and manage your risks.

Our global logistics and cargo network has 17 offices and four placement hubs worldwide, allowing us to tap into different markets to secure the solutions that are most aligned to your needs. We will work to creatively integrate your unique exposures into a holistic insurance and risk management framework, while also identifying emerging opportunities and challenges.

Contact your Marsh representative to find out more about our marine and air cargo delay insurance solutions and find out how they can help protect you and your clients.