inLog · 2026-10-28
Marine cargo insurance: ICC A, B, C clauses and an exporter’s checklist
Cargo travels at sea for weeks, changes hands many times and is loaded and unloaded. Damage, loss and theft are always possible. A carrier’s liability is often limited by law and does not cover the true value of the goods. Marine cargo insurance closes that gap. This article summarises the basics for exporters, importers and e-commerce sellers.
What is marine cargo insurance?
It covers physical loss and damage to goods while they move from origin to destination. It can cover containers, bulk, break-bulk and project cargo. The policy can be written for a single shipment or as an annual “open policy”.
What are the ICC (A), (B) and (C) clauses?
The Institute Cargo Clauses (ICC), widely used in international sea transport, offer three main levels of cover:
- ICC (A): the broadest cover, insuring against all risks except those expressly excluded.
- ICC (B): named risks, such as fire, explosion, vessel or conveyance casualty, jettison and entry of seawater into the conveyance.
- ICC (C): the narrowest, covering only major events such as fire, explosion, and vessel or conveyance casualty, collision or sinking.
Which level suffices depends on the type, packaging, route and value of the goods. For low-value or robust cargo (C) or (B) may do, while fragile and valuable goods generally call for (A).
Incoterms: who arranges the insurance?
The Incoterms rule in the sales contract decides who is responsible for transport and insurance. Under CIF and CIP the seller must insure; under FOB and EXW the buyer bears transit risk and arranges its own cover. Incoterms 2020 sets a minimum of ICC (C) for CIF and ICC (A) for CIP. In practice the insured value is often 110 percent of the invoice value.
War and strike clauses
In marine cargo insurance, war and strike risks are handled by separate clauses (Institute War Clauses and Institute Strikes Clauses). On sensitive routes, check whether they are added to the policy.
General average
A sacrifice or expense made to save ship and cargo from a common danger is shared between ship and cargo owners. When general average is declared, the cargo owner may have to provide security or a contribution. The cargo policy meets this share under its terms, which is why insuring the cargo matters.
What to do after a loss
- Inspect the container and cargo on delivery; if damaged, add a “reservation” to the delivery document.
- Document the damage with photos and video.
- Send a written notice to the carrier and keep within deadlines.
- Notify the insurer or your agent immediately; a survey may be needed.
- Keep invoice, bill of lading, packing list and policy documents.
Exporter’s checklist
- Are the Incoterms rule and insurance responsibility clear in the sales contract?
- Was the ICC level chosen to suit the goods?
- Does the insured value include the invoice plus a reasonable margin?
- Are war and strike clauses and storage or transit delays included?
- Is a single-shipment or open policy cheaper?
Send us your cargo details, route and shipment frequency and we will compare cover and cost for you.
Frequently asked questions
Isn’t the carrier’s liability enough to protect my cargo?
A carrier’s liability is often limited by law and does not cover the real value of the goods. Cargo insurance is based on the value of the goods.
Should I choose ICC (A)?
For fragile, valuable or damage-prone goods ICC (A) is usually preferred. For robust, low-value cargo (B) or (C) may suffice; let us assess it for your cargo.
Who arranges insurance in an export?
It depends on the Incoterms rule in the sales contract. Under CIF and CIP the seller insures; under FOB and EXW the buyer does.
What is an open policy?
A structure that gathers all shipments in a period under one policy. It is practical and often economical for businesses that ship frequently.
What if I notice damage on delivery?
Add a reservation to the delivery document, take photos, send the carrier a written notice and tell the insurer within the deadlines.