Marine Cargo policies offer varying coverage levels. The extent of protection is based on the “Institute Cargo Clauses” (ICC). The ICC is an international standard used by many countries to determine what is and isn’t covered under Marine Cargo policies. Marine Cargo policies are written based on 3 kinds of ICC. These 3 ICC types are lettered from A (broadest cover), to C (narrowest cover).
When you purchase a Marine Cargo policy, you can choose whether you want Institute Cargo Clauses A, B, or C. Most cargo owners will purchase Institute Cargo Clause (A) policies. This is because you typically only save 2-5% if you purchase the B or C options, and the coverage for B and C is usually too narrow to be of much benefit to cargo owners.
| Coverage | Marine Cargo Policy: Institute Cargo
Clauses A
| Marine Cargo Policy:
Institute Cargo Clauses B | Marine Cargo Policy:
Institute Cargo Clauses C |
| Number of risks covered | Technically unlimited, except those excluded | 10 | 7 |
| Fire and explosion | 🗸 | 🗸 | 🗸 |
| Vessel stranded, grounded, sunk | 🗸 | 🗸 | 🗸 |
| Overturning/derailment of land transport | 🗸 | 🗸 | 🗸 |
| Ship collision | 🗸 | 🗸 | 🗸 |
| Discharge of cargo at port of distress | 🗸 | 🗸 | 🗸 |
| General Average sacrifice | 🗸 | 🗸 | 🗸 |
| Jettison | 🗸 | 🗸 | 🗸 |
| Cargo accidentally falling overboard while in transport | 🗸 | 🗸 | |
| Lightning, earthquake, volcanic eruption | 🗸 | 🗸 | |
| Water damage on goods from sea/river water entering vessel (excludes damage caused by rain, sprinklers, or condensation) | 🗸 | 🗸 | |
| Water damage on goods (includes damage caused by rain, sprinklers) | 🗸 | | |
| Loss or damage while loading/unloading | 🗸 | | |
| Piracy | 🗸 | | |
| Theft | 🗸 | | |
| Malicious damage (e.g. vandalism) | 🗸 | | |
| All other risks, except those excluded by the policy | 🗸 | | |
| Premium | – | Typically only 2-3% less than Institute Cargo Clauses (A) | Typically only 5% less than Institute Cargo Clauses (A) |
