For every Australian business moving goods across borders, the journey from the supplier’s warehouse to the customer’s doorstep is filled with risk. Fires, theft, storms, and accidental damage can strike at any point in transit. That’s where the warehouse-to-warehouse clause comes in—a little-known but crucial safeguard in marine and cargo insurance policies. As global supply chains remain volatile in 2025 and insurers update their offerings, understanding this clause is more relevant than ever.
What Is the Warehouse-to-Warehouse Clause?
The warehouse-to-warehouse clause is a standard provision in marine cargo insurance policies. In simple terms, it extends insurance coverage beyond just the sea voyage. It protects goods from the moment they leave the seller’s warehouse at the origin until they arrive at the buyer’s warehouse at their final destination—covering all land, sea, and sometimes air transport in between.
- Start point: Coverage begins when goods are physically lifted from the seller’s warehouse or place of storage.
- End point: Coverage ends when goods are delivered to the consignee’s warehouse, or after a specified period (usually 60 days) from their arrival at the destination port.
- Transit inclusivity: The clause covers all usual methods of transport—trucks, trains, ships, and sometimes even air freight.
It’s a critical tool for businesses, especially when goods traverse several countries, multiple carriers, and uncertain routes.
Why Does It Matter in 2025?
Australia’s import and export landscape has seen major shifts in 2025. With ongoing disruptions from global events, stricter port security, and climate-driven weather extremes, the risk of loss or damage in transit is higher than ever. Insurers have responded by tightening definitions and exclusions in policies. Here’s why the warehouse-to-warehouse clause is more valuable than ever:
- Port Congestion and Delays: Delays at major Australian ports—like Sydney and Melbourne—can leave cargo exposed for longer. The clause ensures coverage continues during these hold-ups, up to the maximum time allowed.
- Multi-Modal Logistics: Many Australian exporters now use a mix of road, rail, and sea to reach Asian and Pacific markets. The clause means continuous coverage, even as goods change hands between carriers.
- 2025 Regulatory Updates: Recent APRA guidance has prompted insurers to clarify the start and end points of coverage. Some now specify stricter time limits (sometimes 30 days instead of 60) at the destination port, so it’s crucial for businesses to check their policies.
Example: A Queensland manufacturer exporting machinery to Vietnam faces unexpected flooding at the Ho Chi Minh port. Their warehouse-to-warehouse coverage ensures the machines are protected until they reach the buyer’s warehouse—even if they’re held at the port for two weeks.
Common Exclusions and Pitfalls
While the warehouse-to-warehouse clause offers broad protection, there are critical limitations to watch out for:
- Specified Time Limits: If cargo isn’t moved to the final warehouse within the insurer’s set timeframe (often 30-60 days after discharge), coverage lapses. In 2025, some insurers have reduced these windows due to congestion risks.
- Unusual Storage: Storage at third-party facilities en route (like a bonded warehouse) may not be covered unless specifically noted in the policy.
- Acts of War or Strikes: Standard policies may exclude damage from war, strikes, or civil unrest—extra endorsements are often needed.
- Negligence or Poor Packing: If goods are damaged due to inadequate packing at the origin warehouse, claims may be denied.
To avoid costly surprises, businesses should:
- Confirm the exact start and end points of coverage with their insurer.
- Keep detailed records of cargo movements and warehouse transfers.
- Consider add-on coverage for storage, strikes, or extended periods if their supply chain is complex.
Maximising Protection: Tips for Australian Businesses
With global logistics challenges set to continue in 2025, Australian importers and exporters should take a proactive approach:
- Review Policy Wording: Don’t assume all warehouse-to-warehouse clauses are identical. Some may exclude certain legs of the journey or have strict documentation requirements.
- Work With Specialist Brokers: Marine insurance brokers can help tailor coverage to match your supply chain’s unique needs—especially if you use multiple storage sites or carriers.
- Digital Tracking: Use shipment tracking tools to maintain an audit trail, supporting claims if something goes wrong.
- Stay Informed on Regulatory Changes: Follow APRA and Australian Customs updates to ensure your policy remains compliant as rules evolve.
Protecting your cargo isn’t just about insuring the sea voyage—it’s about ensuring seamless coverage from start to finish.
