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Clause types and coverage explained

Institute Cargo Clauses outline insurance coverage for goods in transit, offering varying levels of protection.

Institute Cargo Clauses (ICC) are standardised marine insurance clauses that define the terms and coverage of lost or damaged cargo during transit.

Clauses include a warehouse-to-warehouse period of coverage with common exclusions (war, strikes, etc.).

There are three main types:

  1. ICC Clause A (all-risk)

The most comprehensive (all-risks). Covers almost all potential risks of loss or damage, unless specifically excluded. 

2. ICC Clause B (named perils)

Covers loss or damage from a list of named perils, such as fire, explosion, stranding, sinking, collision, and washing overboard. Does not cover a wide range of risks included in Clause A. 

3. ICC Clause C (limited perils)

The most restrictive clause provides the minimum level of coverage only during carriage, for a limited list of risks, such as fire, explosion, stranding, sinking, and jettison. 

InsuredICC (A)ICC (B)ICC (C)
Fire and explosion
x
x
x
Standing, grounding, capsizing or sinking
x
x
x
Overturn, derailment
x
x
x
Collision
x
x
x
Discharge of cargo at port of distress
x
x
x
General Average
x
x
x
Jettison
x
x
x
Washing overboard
x
x
Act of God (e.g. earthquake, volcanic eruption, lightning, flood)
x
x
Entry of sea, lake or river water
x
x
Total loss of package overboard
x
x
Total loss whilst loadingor unloading
x
Theft, pilferage, non-delivery
x
Leakage
x
Malicious damage
x
Breakage or other physical loss from external cause
x
Willful misconduct of insured
Inherent vice or nature of goods
Ordinary leakage, loss in weight or volume wear and tear
Insufficiency of packing or preparation of goods
Delay
Insolvency of carrier
Nuclear fission and/or fusion or other reaction or radioactive force or matter