Cargo insurance is available in two variants with different scopes of insurance:
Insurance covers the following losses:
– resulting from natural forces (eg. fire, lightning stroke, floods, hurricane, heavy rain, hail, avalanche)
– resulting from an accident of a means of transportation
The insurance covers all losses that have not been excluded in the general terms and conditions of insurance.
Marine transportation insurance in 1983, the last condition set that includes the terms A, B, C’s. These formulas contain a variety of marine insurance coverage.
Terms and conditions known as A:
However, an inherent defect or corruption of nature, and like them and where their insurance requires a special agreement between the insurer and the insured is a massive commitment of insurers is out.
In practice, the formula coated on commodities or commodity vulnerable to the risk of damage during transport based on accidents at sea has A.
Insurance requirements B:
In this formula, the coverage that insurers only cover damage caused by the occurrence of certain events, risks and anticipated policy is created. Supply risks such as grounding, sinking or capsize the ship or ship collisions with external objects, waterfront goods at the port due to water damage emergency and throw some goods (public and shared losses).
Insurance requirements C:
This type of insurance coverage, insurers are more restricted and involves a commitment that the events anticipated compensation in the insurance policy to the insured goods are imported. The events covered in this formula include fire or explosion, grounding, sinking or capsize the ship. From a legal perspective and manner of proof of damage, an important difference between the situation with Formula A Formula B and C Transition.
Different types of shipping insurance coverage
An all-risk cargo insurance policy will cover any physical loss/damage from any external cause. An all-risk policy will list any exclusions that are not covered, which can be added on to the policy as an additional clause.
Named perils policies will list what is covered under the policy. These policies will not cover theft!
Free of Particular Average (FPA) – Covers stranding, sinking, burning, collision, fire, lightning, crash, collision.
With Average (WA) – This is not a common type of policy anymore. It covers stranding, sinking, burning, collisions, heavy weather, fire, lightning, crash, collision, heavy weather.
Shipment – by – Shipment (Through a carrier)
If you are insuring your goods shipment-by-shipment, you are most likely not covered for:
Acts of God – e.g. heavy weather, earthquake, lightning, etc Fire
Acts of war – acts of strikes, riots or civil commotions
Latent defects in the hull or machinery
Criminal acts or negligence by the master or crew
Unseaworthiness of the vessel
Seller owns the goods until they are loaded onto the vessel. Selling price includes all costs so far, plus the costs of the cargo insurance.