Cargo arriving damaged doesn't automatically mean the claim will be paid in full — or at all. Whether marine cargo insurance responds, and how much it pays, depends on a handful of specific factors worth understanding before goods are even shipped.
What determines whether a damaged-goods claim is paid
- Cause of damage. Whether the cause falls within the policy's covered perils (or, under an all-risks policy, isn't specifically excluded).
- Timing of the damage. Whether the damage occurred during the covered transit period, versus before loading or after delivery.
- Packaging adequacy. Insurers commonly dispute claims where packaging is judged inadequate for the mode of transport and nature of the goods.
- Notification and survey. Whether damage was reported promptly and, where required, a surveyor was engaged before goods were moved or disposed of.
- Documentation trail. Whether the paper trail — bill of lading, packing list, delivery order, photos of the damage — supports the claimed cause and extent of loss.
Common reasons cargo damage claims get disputed
| Dispute reason | What it usually means |
|---|---|
| "Inherent vice" | The insurer argues the damage resulted from the nature of the goods themselves, not an insured event — common for perishables and moisture-sensitive cargo. |
| "Inadequate packaging" | The insurer argues packaging wasn't sufficient for the transit conditions — a frequent dispute point for fragile or palletised goods. |
| "Pre-existing damage" | The insurer argues the damage occurred before the covered transit began — this is where loading photos and condition reports matter. |
| "Delayed notification" | Reporting damage well after delivery weakens the ability to establish when and how it occurred. |
What to do when goods arrive damaged
- Note the damage on the delivery document at the point of receipt, before signing clean.
- Photograph the damage and the packaging as received, before any goods are moved.
- Notify the insurer promptly — don't wait until a full internal assessment is complete.
- Request a surveyor if the claim value or the insurer's process requires one, before disposing of or reworking the damaged goods.
Dealing with a damaged shipment?
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We'll help you understand whether the situation fits your current cover, and what to prepare before making the claim.
Review My Damaged-Shipment CoverageFrequently asked questions
Does marine cargo insurance cover water damage from normal humidity in transit?
This depends heavily on the specific policy and whether the goods and packaging were appropriate for the shipping conditions — it's a frequent area of dispute rather than a clear yes or no.
Do I need a surveyor for every damaged-cargo claim?
Not always, but for higher-value claims or where the cause of damage is disputed, an independent survey report significantly strengthens the claim.