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Finally Understand What Cargo in Transit Insurance Covers: Levels of Coverage and Perils That Can Be Covered


Navigating the complex world of maritime insurance can be challenging, but understanding the foundation of Institute Cargo Clauses (ICC) A, B, C is essential for protecting your cargo and ensuring smooth operations. Here’s a brief breakdown to help clarify these critical insurance terms:

  • ICC (A) Clauses:
    The all-risks coverage, ICC (A) offers the highest level of protection against physical loss or damage. It’s comprehensive, covering everything except exclusions such as wilful misconduct, insufficient packaging, inherent vice of goods, ordinary leakage, loss in weight or volume, wear and tear, and delay. Perfect for those seeking broad security for their shipments.

  • ICC (B) Clauses:
    Providing a balanced scope of protection, ICC (B) covers named perils such as fire, collision, and natural disasters. While it doesn’t offer the extensive coverage of ICC (A), it’s a reliable option for those prioritizing specific risk scenarios.

  • ICC (C) Clauses:
    The most basic level of coverage, ICC (C), the so-called „total loss” cover, addresses major risks like fire, explosion, and cargo jettisoning. It’s ideal for cost-conscious businesses or cargoes with low-risk profiles. Please note that even these most restrictive clauses cover General Average (GA) events.

    Understanding these distinctions ensures you select the right coverage tailored to your specific needs. Making informed decisions about cargo insurance can save your business significant costs and potential headaches.

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