Project Cargo Insurance
Marine cargo insurance for large, heavy, oversized, and high-value single shipments that require specialist underwriting, pre-shipment survey, and bespoke transit arrangements. Voyage arranges project cargo coverage for heavy machinery, industrial equipment, turbines, transformers, construction plant, modular structures, and infrastructure components shipped from and through Asia-Pacific trade corridors to project sites worldwide.
Marine cargo insurance for large, heavy, oversized, and high-value single shipments that require specialist underwriting, pre-shipment survey, and bespoke transit arrangements. Voyage arranges project cargo coverage for heavy machinery, industrial equipment, turbines, transformers, construction plant, modular structures, and infrastructure components shipped from and through Asia-Pacific trade corridors to project sites worldwide.
Our Specialisation
Marine Cargo & Liability Specialists We focus on marine cargo insurance and freight forwarder liability. This means deeper underwriter relationships, faster placements, and better terms for your trade programme.
Asia-Pacific Trade Corridors We work with underwriters who understand the commodities and shipping routes coming out of Malaysia, Singapore, and Southeast Asia. Regional expertise, global coverage.
Specialist Extensions War risk, strikes, specie, and project cargo. We arrange coverage others decline, including high-value goods and shipments through conflict-affected corridors.
You are shipping a 60-tonne gas turbine from Port Klang to a power plant site in East Africa. The turbine travels by heavy-lift vessel on a custom-welded cradle, then by multi-axle trailer for 200 kilometres of inland road transit to the project site. A pre-shipment survey is required. If the turbine is damaged during loading and the project start date slips by three months, the financial exposure is not just the replacement cost of the equipment. It includes the revenue the completed plant would have generated during those three months.
Standard marine cargo open covers are not designed for this. They handle containerised goods on established trade lanes with predictable values and repeatable risk profiles. Project cargo is the opposite: one-off shipments, bespoke handling, oversized dimensions, specialist vessels, and financial consequences that extend beyond the physical cargo.
Project cargo insurance covers the transit of capital equipment, industrial machinery, and infrastructure components from manufacturer to project site, with extensions available for installation, testing, commissioning, and the financial losses caused by transit-related project delays. Voyage arranges project cargo placements with underwriters who have engineering expertise and heavy-lift experience across Asia-Pacific corridors.
This page covers:
- What project cargo insurance covers and how it differs from standard marine cargo
- Types of project cargo and how they ship
- Why standard open covers are not suitable for project cargo
- Coverage components: transit, storage, installation, and DSU/ALOP
- Pre-shipment survey and marine warranty requirements
- Who needs project cargo insurance
- Common claim scenarios
- How Voyage arranges project cargo coverage
- Frequently asked questions
What Makes Project Cargo Different from Standard Cargo
Standard marine cargo insurance covers goods moving in containers along established trade lanes. The underwriting is repeatable: known commodity, known route, known packing, predictable per-shipment values. Project cargo breaks every one of those assumptions.
| Dimension | Standard Marine Cargo | Project Cargo |
|---|---|---|
| Shipment frequency | Regular (monthly, weekly, continuous) | One-off or limited series |
| Cargo type | Containerised goods, bulk commodities | Oversized, heavy, bespoke equipment |
| Conveyance | Standard container vessels, bulk carriers | Heavy-lift vessels, flat racks, RoRo, multi-modal with specialist vehicles |
| Per-shipment value | Typically under $1 million | Often $1 million to $50 million or more |
| Packing | Standard container, palletised | Custom cradles, frames, sea fastening, weather protection |
| Survey | Not typically required | Pre-shipment survey usually a condition of cover |
| Transit duration | Days to weeks | Weeks to months, including inland legs |
| Consequential loss | Not covered under standard marine cargo | DSU/ALOP extensions available |
| Installation | Not applicable | Installation, testing, and commissioning extensions available |
| Underwriting | Standard cargo capacity, often automated | Specialist project cargo underwriters with engineering expertise |
The risk profile is fundamentally different. A damaged container of garments is a financial loss. A damaged turbine is a financial loss plus a three-month project delay plus liquidated damages plus debt servicing costs on a half-built power plant.
Types of Project Cargo
Project cargo spans multiple industries and equipment categories. What they share is size, value, complexity, and the need for specialist handling.
| Category | Examples | Typical Conveyance | Key Risk Factors |
|---|---|---|---|
| Power generation | Gas turbines, steam turbines, generators, boilers, heat recovery units | Heavy-lift vessel, flat rack, multi-axle trailer | Weight concentration, vibration sensitivity, inland transit on unpaved roads |
| Electrical infrastructure | Transformers, switchgear, high-voltage cables, substations | Flat rack, open top, specialist overland trailer | Oil leakage (oil-filled transformers), impact sensitivity, height and weight restrictions on road transit |
| Oil and gas | Pressure vessels, compressors, pipe racks, processing modules | Heavy-lift vessel, barge, RoRo | Corrosion, dimensional constraints, multi-stage lifting |
| Renewable energy | Wind turbine blades, nacelles, tower sections, solar inverters | Purpose-built blade carriers, flat rack, heavy-lift vessel | Blade length (up to 80+ metres), surface damage, port handling |
| Mining and minerals processing | Crushers, mills, conveyors, dump truck bodies | Heavy-lift vessel, flat rack, overland convoy | Extreme weight, remote site access, extended inland transit |
| Construction plant | Cranes, excavators, piling rigs, tunnel boring machines | RoRo, flat rack, heavy-lift vessel | Mechanical condition, disassembly and reassembly, hydraulic system integrity |
| Modular construction | Pre-fabricated modules, containerised units, process skids | Heavy-lift vessel, barge | Dimensional tolerances, lifting points, stacking and securing |
Coverage Components
Project cargo insurance is not a single policy. It is a programme built from several coverage components, tailored to the specific shipment, contract, and project requirements.
1. Transit Cover (Core)
The foundation of every project cargo placement. Covers physical loss or damage to the cargo during transit from origin to destination.
| Feature | Detail |
|---|---|
| Coverage basis | Institute Cargo Clauses (A) 2009: all-risks of physical loss or damage, subject to standard exclusions |
| Extensions | War risk (Institute War Clauses, Cargo), strikes (Institute Strikes Clauses, Cargo) |
| Geographic scope | Worldwide, subject to sanctions and JWC listed areas |
| Conveyance | All modes: sea (including heavy-lift and deck cargo), air, road, rail, barge, and multi-modal combinations |
| Valuation | Agreed value, replacement cost, or CIF plus agreed percentage |
| Transit duration | Extended transit clause to accommodate longer-than-standard transit periods, including customs delays and port congestion |
| Deck cargo | Coverage for cargo stowed on deck (standard ICC (A) applies to under-deck stowage; deck cargo requires specific agreement) |
| Transhipment | Covered where part of the planned transit, including crane-to-crane transfers at intermediate ports |
2. Storage Cover
Project cargo often spends extended periods in storage before, during, or after transit. Standard marine cargo transit clauses have time limits that project cargo regularly exceeds.
| Feature | Detail |
|---|---|
| Pre-shipment storage | Coverage while the equipment is held at the manufacturer's premises or a marshalling yard awaiting shipment |
| Intermediate storage | Coverage at ports, bonded warehouses, or staging areas during multi-leg transit |
| Destination storage | Coverage at the project site or a nearby warehouse awaiting installation |
| Time limits | Negotiated per placement. Standard ICC (A) Clause 8 terminates cover 60 days after discharge at the final port. Project cargo placements typically extend this to 90, 120, or 180 days. |
3. Installation Extension
Many project cargo contracts include delivery, installation, testing, and commissioning at the project site. Standard marine cargo cover terminates at the destination warehouse. An installation extension bridges the gap.
| Feature | Detail |
|---|---|
| What it covers | Physical loss or damage during unloading at the project site, positioning, assembly, erection, installation, and (where agreed) testing and commissioning |
| What it does not cover | Performance deficiency, faulty design, manufacturing defects, or inherent vice. The installation extension covers physical damage during the installation process, not whether the equipment works as designed. |
| Duration | Agreed period, typically 3 to 12 months from arrival at the project site |
| Overlap with CAR/EAR | Installation cover under a marine cargo policy overlaps with Contractors All Risks (CAR) or Erection All Risks (EAR) policies. The handover point must be clearly defined to avoid gaps or double insurance. |
4. DSU / ALOP (Delay in Start-Up / Advanced Loss of Profit)
This is what separates project cargo insurance from standard marine cargo. DSU/ALOP covers the financial consequences of a transit-related delay to the project completion date.
| Feature | Detail |
|---|---|
| What it covers | Loss of anticipated revenue, debt servicing costs, fixed operating costs, and other financial losses caused by a delay in the project's commercial operation date, where that delay results from physical damage to the insured cargo during transit or installation |
| Trigger | Physical damage to the cargo that is covered under the transit or installation section of the policy. DSU/ALOP only responds if the underlying physical damage claim is valid. |
| Time excess (waiting period) | A deductible expressed in days, not money. Typical waiting periods are 30, 45, 60, or 90 days. The insurer pays for delay beyond the waiting period. |
| Indemnity period | The maximum period for which DSU/ALOP will pay, typically 12 to 24 months from the date the delay begins |
| Sum insured | Based on projected revenue, debt servicing, and fixed costs for the indemnity period. Requires financial modelling at the time of placement. |
| Key exclusion | Delay caused by anything other than insured physical damage: supply chain disruption, permit delays, labour disputes, design changes, and force majeure events that do not cause physical damage to the cargo |
DSU/ALOP is often the most valuable component of a project cargo programme. The replacement cost of a damaged turbine might be $5 million. The revenue lost during the 6 months it takes to manufacture, ship, and install a replacement could be $20 million.
Pre-Shipment Survey and Marine Warranty
Pre-shipment survey is a standard requirement for project cargo insurance. Underwriters need independent verification that the cargo is properly packed, secured, and loaded before coverage attaches or continues.
What the Survey Covers
| Survey Stage | Purpose |
|---|---|
| Packing and preparation | Verification that the cargo is packed, preserved, and protected to the standard required for the planned transit. Includes corrosion protection, moisture barriers, and shock protection. |
| Cradle and sea fastening design | Review of the custom cradle, frame, or sea fastening arrangement. Structural calculations must be approved before loading. |
| Loading supervision | Surveyor present during loading to verify that lifting, positioning, and securing are carried out according to the approved plan. Photographic and video documentation is standard. |
| Vessel suitability | Confirmation that the vessel is suitable for the cargo: crane capacity, deck strength, stability, and stowage plan. For heavy-lift vessels, class approval of strength and stability calculations may be required. |
| Inland transport | Route survey for overland legs, including bridge weight limits, overhead clearance, road surface condition, and turning radii. Permits and escort requirements are confirmed. |
Marine Warranty Surveyor (MWS)
For high-value or complex project cargo, underwriters may appoint a Marine Warranty Surveyor. The MWS is independent and acts on behalf of the cargo insurers. Their role is to verify that all operations comply with the approved procedures and the warranty conditions in the insurance policy.
Non-compliance with MWS recommendations can void coverage. This is a critical point: if the surveyor identifies a problem with the loading plan and the shipper proceeds without correction, the insurer may decline a subsequent claim.
Who Needs Project Cargo Insurance
| Audience | Why You Need Project Cargo Cover | Primary Coverage |
|---|---|---|
| EPC contractors | You are contractually responsible for delivering equipment to the project site in working condition. A transit loss is your liability, and liquidated damages for delay can exceed the cargo value. | Transit + installation + DSU/ALOP |
| Equipment manufacturers | You are selling CIF or DDP and bearing transit risk until delivery. A damaged turbine that arrives 4 months late does not just cost you the replacement; it costs you the client relationship. | Transit + storage + installation (where contracted) |
| Project owners and developers | You are funding the project and bearing the revenue loss if it starts late. Even if the EPC contractor insures the cargo, you need to verify that coverage includes DSU/ALOP for your financial exposure. | DSU/ALOP + verification of contractor's transit cover |
| Lenders and financial institutions | You are financing the project. A physical damage event that delays commercial operation affects debt servicing, covenants, and project viability. DSU/ALOP coverage is often a condition of project finance. | DSU/ALOP (as beneficiary or loss payee) |
| Heavy-lift and specialised logistics providers | You are arranging the transport and may be liable for damage caused by your handling. Your marine liability cover must respond to project cargo exposures, not just standard containerised goods. | Marine liability, cargo legal liability |
| Mining and energy companies | You are importing capital equipment for extraction, processing, or generation. Replacement lead times for specialist equipment can be 6 to 18 months. | Transit + extended storage + DSU/ALOP |
Why Standard Open Covers Are Not Suitable for Project Cargo
If you already have a marine cargo open cover, you might assume it covers your project cargo shipment. In most cases, it does not, or it does not cover it adequately.
| Limitation | What This Means for Project Cargo |
|---|---|
| Per-shipment limit | Open covers have a maximum per-shipment value, often $500,000 to $2 million. A single piece of project cargo can exceed this by multiples. |
| Commodity restrictions | Open covers define the commodities they cover. Heavy machinery, oversized equipment, and bespoke industrial goods may not fall within those definitions. |
| No DSU/ALOP | Standard open covers do not include delay in start-up coverage. The consequential financial loss from a transit-related project delay is not covered. |
| No installation extension | Coverage terminates at the destination warehouse. There is no provision for installation, testing, or commissioning at the project site. |
| Transit duration limits | ICC (A) Clause 8 terminates cover 60 days after discharge at the final port. Project cargo can spend months in transit and storage before reaching the project site. |
| No survey requirement | Open covers do not require pre-shipment survey. Without survey, there is no independent verification of packing and loading, and the insurer may challenge a claim on the basis of inadequate preparation. |
| Deck cargo exclusion | Some open covers exclude or restrict deck cargo. Much project cargo ships on deck due to its size. |
The correct approach is a standalone project cargo placement: a bespoke policy designed for the specific shipment, with limits, duration, survey requirements, and extensions tailored to the project.
Common Project Cargo Claim Scenarios
Scenario 1: Transformer Damage During Loading, Port Klang to Mombasa
A power transformer weighing 85 tonnes is being loaded onto a flat rack at Port Klang for shipment to a hydroelectric project in Kenya. During the crane lift, a sling shifts and the transformer contacts the ship's rail, causing casing deformation and an oil leak from the conservator tank.
| Component | Detail |
|---|---|
| Cargo | 85-tonne power transformer |
| Corridor | Port Klang to Mombasa, Kenya |
| Cause of loss | Sling shift during crane loading, contact with vessel rail |
| Physical damage | Casing deformation, conservator tank oil leak, suspected internal winding displacement |
| Repair requirement | Return to manufacturer for inspection, rewinding, and retesting. Estimated 5 months. |
| Transit cover response | Covers repair or replacement cost of the transformer |
| DSU/ALOP response | Covers the revenue loss and debt servicing costs for the 5-month delay to the project's commercial operation date, subject to the waiting period |
Scenario 2: Wind Turbine Blade Damage During Inland Transit, Kuantan to Wind Farm Site
Three 75-metre wind turbine blades are transported by specialist blade carrier from Kuantan port to an inland wind farm site. On the final 40 km stretch, the lead vehicle of the convoy fails to account for a low-hanging power line. The trailing blade contacts the line, causing a surface crack along 8 metres of the blade's leading edge.
| Component | Detail |
|---|---|
| Cargo | 75-metre wind turbine blade |
| Corridor | Kuantan port to inland wind farm site (overland) |
| Cause of loss | Contact with overhead power line during road transit |
| Physical damage | 8-metre surface crack on leading edge, structural integrity compromised |
| Repair requirement | Blade must be returned to port, shipped to manufacturer for repair. Estimated 4 months. |
| Transit cover response | Covers repair cost and return transit to manufacturer |
| DSU/ALOP response | Covers the revenue loss from delayed commissioning of the affected turbine, subject to waiting period |
| Key consideration | Pre-shipment route survey should have identified the overhead obstruction. If the surveyor flagged the hazard and the transporter failed to act, the claim is still valid under the cargo policy, but the insurer may pursue subrogation against the transport contractor. |
Scenario 3: Offshore Platform Module Damaged by Heavy Weather, Lumut to Sabah
A 120-tonne process module is shipped by barge from Lumut to an offshore platform installation site in Sabah. During transit through the South China Sea, the barge encounters heavy weather. Sea fastenings fail and the module shifts, causing structural damage to the support frame and rupturing two process piping connections.
| Component | Detail |
|---|---|
| Cargo | 120-tonne offshore process module |
| Corridor | Lumut to offshore Sabah (barge transit) |
| Cause of loss | Heavy weather, sea fastening failure, cargo shift |
| Physical damage | Structural damage to support frame, ruptured process piping |
| Repair requirement | Module must be returned to the fabrication yard for structural repair and piping replacement. Estimated 3 months. |
| Transit cover response | Covers repair costs, salvage costs, and return transit to fabrication yard |
| DSU/ALOP response | Covers the financial loss from delayed platform commissioning |
| Key consideration | The MWS approved the sea fastening design before departure. If the fastening failed despite conforming to the approved plan, the claim is valid. If the shipper deviated from the approved plan, the warranty clause may be invoked. |
How Voyage Arranges Project Cargo Cover
Cargo Assessment: You provide the shipment details: equipment type, dimensions, weight, value, origin, destination, conveyance plan, and project timeline. For DSU/ALOP, we need the projected commercial operation date and financial projections for the project.
Risk Engineering: Project cargo placements start with understanding the cargo, not just its value. What are the lifting points? How is it secured? What is the inland transit route? What are the environmental sensitivities? We work with you and the logistics provider to build a complete risk picture.
Survey Coordination: We coordinate pre-shipment survey requirements, identify approved surveyors, and confirm whether a Marine Warranty Surveyor is required. Survey reports are submitted to underwriters before coverage is confirmed.
Market Placement: Project cargo goes to specialist underwriters with engineering expertise, not standard cargo capacity. We place with markets that have heavy-lift experience and appetite for the specific commodity, corridor, and project type.
Policy Structure: Each placement is bespoke. Transit cover, storage extensions, installation extension, DSU/ALOP, and any other components are assembled into a single programme with clearly defined handover points, time limits, and conditions.
Claims Management: Project cargo claims are complex. They involve surveyors, engineers, forensic accountants (for DSU/ALOP), and often multiple parties. We manage the claims process from first notification through to settlement, coordinating with all parties.
Frequently Asked Questions (FAQ)
What is project cargo insurance?
Project cargo insurance covers the transit of large, heavy, oversized, or high-value equipment and materials to construction and infrastructure project sites. It extends beyond standard marine cargo to include installation risk, extended storage, and delay in start-up coverage. Each placement is bespoke, designed for the specific shipment and project.
How does project cargo insurance differ from standard marine cargo insurance?
Standard marine cargo covers containerised goods on regular trade lanes with repeatable risk profiles. Project cargo covers one-off or limited-series shipments of bespoke equipment requiring specialist handling, pre-shipment survey, and extensions that standard policies do not offer: installation cover, extended transit duration, DSU/ALOP, and deck cargo on specialist vessels.
What is DSU/ALOP and why does it matter?
DSU (Delay in Start-Up) or ALOP (Advanced Loss of Profit) covers the financial consequences of a project delay caused by physical damage to the insured cargo during transit or installation. It pays for lost revenue, debt servicing costs, and fixed expenses during the delay period. For large infrastructure projects, the DSU/ALOP exposure often exceeds the physical value of the cargo by multiples.
Is pre-shipment survey mandatory?
For most project cargo placements, pre-shipment survey is a condition of cover. Underwriters require independent verification of packing, securing, and loading before they confirm coverage. Proceeding without survey where it is required can void the policy. Even where not strictly mandatory, survey protects your claim position if something goes wrong.
Can my existing open cover handle a project cargo shipment?
In most cases, no. Open covers have per-shipment limits, commodity restrictions, and standard transit duration clauses that project cargo exceeds. They do not include DSU/ALOP or installation extensions. A standalone project cargo placement is the correct structure for these shipments.
How far in advance should I arrange project cargo insurance?
Start the process 4 to 12 weeks before the planned shipment date. Project cargo underwriting requires detailed information about the cargo, transit plan, and project timeline. Survey coordination, MWS appointment, and sea fastening design review all take time. Late placement creates gaps and can delay the shipment.
Does project cargo insurance cover the inland transit leg?
Yes. Project cargo policies cover the entire transit from origin to final destination, including inland road and rail legs to the project site. Inland transit often represents the highest-risk portion of the journey due to road conditions, overhead obstructions, bridge weight limits, and remote site access. Route surveys are typically required.
Who pays for the pre-shipment survey?
The party responsible for arranging insurance typically pays for the survey. This depends on the contract and Incoterms. Survey costs are a small fraction of the shipment value and the potential claim, and they protect both the insured and the insurer.
Voyage Conclusion
Project cargo sits at the intersection of marine insurance and engineering risk. Every shipment is different: different equipment, different dimensions, different corridors, different project timelines, different financial exposures. Standard marine cargo products are not designed for this, and they should not be forced to fit.
Voyage arranges project cargo insurance with access to specialist underwriters who understand heavy-lift logistics, engineering risk, and the financial architecture of infrastructure projects. From a single transformer to a multi-shipment programme for an entire power plant, we build coverage that matches the complexity of the cargo and the project it serves.
Disclaimer: This page provides general guidance on project cargo insurance. Coverage terms, conditions, and availability vary by insurer, policy, and jurisdiction. DSU/ALOP coverage requires specific financial information and is subject to individual underwriting assessment. Always review your specific policy wording and consult a qualified insurance professional before making coverage decisions.
Our Solutions
| Solution | Description |
|---|---|
| Marine Cargo Insurance | Overview of marine cargo coverage, who needs it, and how Voyage works with cargo owners. |
| Open Cover Marine Cargo | Annual facility covering all shipments. Automatic coverage, monthly declarations, consistent terms. |
| Single Shipment Cover | Ad hoc coverage for individual consignments. Project cargo, one-off shipments, new market testing. |
| Specialist & High-Value Transit | Coverage for specie, fine art, temperature-sensitive cargo, and other specialist consignments. |
| Marine Liability Insurance | Freight forwarder's liability, cargo legal liability, and E&O cover for logistics providers. |
Insights on Project Cargo
Guidance on insuring heavy-lift shipments, infrastructure equipment, and complex multi-leg transit.
Let's Talk About Your Project Cargo
If you are shipping heavy machinery, industrial equipment, or infrastructure components to a project site, we can arrange specialist coverage including transit, installation, and delay in start-up protection.
Voyage is a specialist marine cargo insurance platform arranging coverage for goods in transit worldwide. All insurance is arranged through licensed broking partners. Voyage is not an insurer. Coverage terms, conditions, and availability vary by insurer, policy, and jurisdiction.
Why Voyage
Marine Insurance Specialists
International Underwriter Access
Both Sides of the Supply Chain
Malaysia and Singapore Expertise
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Voyage is a specialist marine insurance intermediary arranging marine cargo and marine liability coverage for businesses in Malaysia, Singapore, and internationally. All insurance is placed through licensed broking partners.
Riskflow Sdn Bhd (202101001225):
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email: samantha@voyagecover.com