Cargo Underwriting in Practice 2

This sheet aims at simplifying how to choose the right cover for your shipment.

It will serve as a refresher for experienced

Cargo underwriters
Insurance brokers
Risk managers

And as a quick guide to

Importers
Exporters
Commodity traders
Manufacturers etc

This is a snippet of what you will get from the sheet:


Insurance Cover Framework

1. Understanding Institute Clauses (A, B, C)

Overview: Institute Cargo Clauses provide standardized insurance coverage for cargo. They are categorized into Clauses A, B, and C, offering different levels of protection.

Clause A (All Risk): Offers the broadest coverage, protecting against all risks except those explicitly excluded.

Clause B: Provides more limited coverage, covering specific risks listed in the policy.

Clause C (Minimum Coverage): Offers the most basic level of coverage, protecting against major risks specified in the policy.

Comparison Chart: Use a side-by-side comparison to highlight the differences in coverage, exclusions, and scenarios best suited for each clause.


2. Manuscript Wording & Additional Clauses/Special Conditions


Manuscript Wording: Tailored insurance policies designed to meet specific needs of the insured beyond standard offerings. They require careful drafting to ensure clarity and adequacy of coverage.

Additional Clauses: May include clauses for war risks, strikes, riots, and civil commotion (SRCC), theft, and non-delivery.

Special Conditions: Conditions that modify or extend standard coverage terms based on unique aspects of the cargo or transportation. This might include automatic coverage extensions for certain events or time frames.

Guidelines for Selection: Offer criteria for deciding when to opt for manuscript wording or additional clauses, considering the nature of the cargo, transportation routes, and specific risk concerns.