For companies engaged in manufacturing, trading, or importing/exporting, goods transit is a highly vulnerable phase. Marine cargo policies protect transit values, but coverage boundaries are defined by standard international clauses. Knowing the difference between Clause A, B, and C is the key to correct risk management.
Institute Cargo Clause A (ICC A) - All Risks
ICC (A) is the widest cargo coverage available. It covers all accidental physical losses or damages to goods in transit, except for specific exclusions (like wear and tear, improper packaging, or willful misconduct). If your cargo is high-value consumer goods, machinery, or fragile components, choosing ICC (A) is essential to secure full financial recovery.
Need Expert Guidance on Your Claim or Policy?
Talk directly to licensed insurance specialists. Unbiased advice with zero fee.
ICC B and ICC C - Restricted Coverage
ICC (B) and ICC (C) are restricted, peril-based coverages. ICC (C) is the most basic, covering only catastrophic events like vessel grounding, fire, explosion, or collision. ICC (B) adds coverage for natural disasters (like earthquakes and volcanic eruptions) and water entry into the holds. While these clauses have lower premiums, they leave you self-insured for theft or handling damages.
- Use ICC (A) for general cargo, retail items, and machinery to cover handling and theft losses.
- Verify that your packing standards comply with policy conditions to prevent claim rejection due to poor packaging.
- Ensure the transit window includes loading at origin and unloading at the final destination warehouse.
- Read the specific war and strike clauses, which require additional endorsements to be active.