Marine Cargo Institute Clauses Compared

MARINE CARGO INSTITUTE CLAUSES COMPARED

Institute Cargo Clause A

Institute Cargo Clause A provides the broadest coverage available and is commonly referred to as an “All Risks” cargo insurance policy. Due to its comprehensive nature, it is also the most expensive of the three clauses.

Clause A covers the maximum range of risks, including damage to the cargo, container, and transport mode. Specific exclusions are detailed in the General Exclusion Clauses.

Institute Cargo Clause B

This clause offers more restricted coverage than Clause A and is therefore priced at a moderate premium. It is often chosen when insuring only high-value items within a shipment or when partial cargo coverage is sufficient.

Institute Cargo Clause C

The most limited of the three, Clause C provides coverage for only specific, clearly defined risks. In most cases, the covered events must occur during carriage. Key risks covered under Clause C include:

General average
Fire or explosion
Grounding or capsizing of a vessel
Collision
General average sacrifice

The Differences Between Institute Cargo Clauses A, B, and C

The primary distinctions between the three clauses lie in the scope of coverage and the specific situations under which claims can be made. Each clause defines in detail what is and isn’t covered, and the premium varies accordingly.

Proximate Cause	Clause A	Clause B	Clause C
Stranding, grounding, sinking, or capsizing	Yes	Yes	Yes
Overturning or derailment of land conveyance	Yes	Yes	Yes
Collision of ship or craft with another	Yes	Yes	Yes
Contact with anything other than ship or craft (excludes water but not ice)	Yes	Yes	Yes
Discharge of cargo at port of distress	Yes	Yes	Yes
Fire or explosion	Yes	Yes	Yes
Earthquake, volcanic eruption, or lightning	Yes	Yes	No
Malicious damage	Yes	No	No
Theft / pilferage	Yes	No	No
General average sacrifice	Yes	Yes	Yes
Jettison	Yes	Yes	Yes
Washing overboard (deck cargo)	Yes	Yes	No
War risks (except piracy)	No	No	No
Tankings at sea (except war risks)	Yes	No	No
Seawater entering ship, container, or place of storage	Yes	Yes	No
River or lake water entering the same	Yes	Yes	No
Loss overboard during loading/unloading (total loss only)	N/A	Yes	No
Any risks of physical loss or damage not specified	Yes	No	No