We Are Here WITH You: Berjaya Sompo’s Marine Insurance Solutions for Cargo Owners and Logistics Providers

When people hear “marine insurance”, they assume it applies only to ships and cargo travelling across the ocean. That perception is understandable, but not entirely accurate.

Marine insurance is not limited to the sea. Coverage extends across land, sea and air, protecting goods in transit whether they move by ship, aircraft, truck or rail. The historical name remains because a large share of global cargo still moves by sea.

The two core client groups in cargo insurance

The first group is cargo owners: businesses that manufacture, trade or export goods. Any company that produces goods and ships them across borders becomes part of the global supply chain and carries cargo risk.

Cargo owners rarely move goods alone. They work with logistics providers—the second major client group—who manage movement on behalf of owners, coordinate routes, handle documentation and ensure goods reach their destination.

The relationship between these groups is central to global trade. Cargo owners depend on logistics providers, while logistics providers operate within a complex framework of responsibilities and liabilities. Insurance sits within this ecosystem as a risk-transfer partner.

The changing risk environment in global trade

The risk landscape has changed significantly. Climate conditions influence how goods move, and natural catastrophes increasingly affect shipping routes, ports and transport infrastructure.

Geopolitical tensions can alter established routes almost overnight, leading to longer journeys, higher costs and greater operational exposure. Tariffs and regulatory changes add complexity, while changes in business models can create new risk profiles that previous insurance arrangements do not adequately cover.

These risks overlap, creating a constantly shifting environment that requires active management.

What happens when disruptions occur?

When traditional routes through the Red Sea became inaccessible, cargo normally passing through the Suez Canal had to be diverted. Southeast Asian exporters sending goods to Europe faced longer journeys, higher freight costs and operational delays.

The Russia-Ukraine conflict also disrupted wheat exports. Asian businesses reliant on Ukrainian wheat had to source alternatives from Canada, Australia and Latin America. New suppliers, routes and climate conditions introduced unfamiliar logistical and environmental risks.

These situations show why businesses involved in international trade must continually evaluate how disruption affects logistics partners, transport routes and insurance coverage.

The misconceptions that create costly gaps

One common misunderstanding among cargo owners is that logistics providers will fully compensate them if goods are damaged. In reality, international liability conventions limit what logistics companies must pay. Compensation may be much lower than the goods’ full value, leaving the cargo owner to bear the gap.

Another misconception concerns “all-risk” coverage. The term does not mean every conceivable event is automatically covered; policies contain defined conditions and exclusions.

Many policyholders also overlook Incoterms, which define the responsibilities of buyers and sellers for freight, insurance and other costs. Misunderstanding these obligations can leave coverage gaps.

Logistics providers can also assume that a cargo owner’s insurance removes their own responsibility. It does not. A shipment delivered to the wrong country because of a label error may be undamaged, yet redirecting it can be costly. Without appropriate liability protection, those costs fall on the logistics provider.

The necessity for cargo insurance and logistics liability

Cargo insurance protects the owner and covers the value of goods in transit, internationally or domestically. Compensation is triggered by damage or loss affecting the cargo itself.

Logistics-liability insurance addresses the legal responsibilities that arise when providers fail to fulfil contractual obligations during the movement of goods.

Marine insurance should not be viewed as a one-off transaction, but as an ongoing partnership. Working with an experienced insurance partner allows cargo owners and logistics providers to review exposure, refine coverage and gain insights that strengthen loss prevention and operational resilience.

Berjaya Sompo as a global marine-insurance partner

As part of the Sompo Group, Berjaya Sompo’s marine-underwriting capability is strengthened by a global network of expertise while remaining grounded in local market needs. As Malaysian businesses expand regionally or globally, the network enables support beyond their home market.

Marine teams across regions encounter a wide variety of cargo, supply-chain challenges and claims. Their collective knowledge gives clients practical insights on risk management and loss prevention.

About Berjaya Sompo’s marine insurance

Berjaya Sompo Insurance provides marine-insurance solutions for clients involved in the movement of goods across global and domestic supply chains. Solutions safeguard businesses against accidents, theft, fire, severe weather and handling damage throughout the transit cycle.

Guided by the commitment “We Are Here WITH You,” Berjaya Sompo’s specialists deliver responsive service, competitive terms and claims support for industries ranging from high technology and pharmaceuticals to machinery, project cargo and logistics services.

Find out more about Berjaya Sompo marine insurance.