Marine Cargo Insurance can provide broad protection for goods in transit, but it does not cover every type of loss or damage.

The exclusions depend on the policy and the cargo clauses applying to the shipment.

What exclusions commonly apply? #

Depending on the wording, exclusions can include loss or damage arising from:

• Deliberate or wilful conduct by the insured.
• Ordinary wear and tear.
• Ordinary leakage or normal loss in weight or volume.
• Inadequate or unsuitable packing.
• Inherent vice or the natural characteristics of the goods.
• Delay.
• Certain insolvency or financial default situations.
• Cyber-related events.
• Communicable disease.
• War or strikes where the appropriate clauses have not been included.

This is not a complete list.

What is inherent vice? #

Inherent vice refers to goods being damaged because of their own natural characteristics rather than an external event.

Examples could include goods naturally deteriorating, spoiling or changing condition during an otherwise normal journey.

Whether a particular loss falls within an exclusion depends on the circumstances and policy wording.

What about poor packaging? #

Packing is particularly important in cargo insurance.

Some policies can exclude damage caused by inadequate or unsuitable packing where responsibility for that packing rests with the insured or another party specified by the policy.

Businesses should therefore use packaging appropriate for:

• The goods.
• Transport method.
• Journey duration.
• Handling involved.
• Expected environmental conditions.

Are war and strikes always excluded? #

Standard cargo clauses can exclude certain war, strike, riot or terrorism-related risks unless separate clauses or extensions apply.

International shipments should therefore be reviewed carefully where these exposures may be relevant.