Understanding Clauses in Cargo Insurance: Choosing the Right Coverage for Your Transport
Insuring goods during transport is one of the most critical pillars for ensuring business continuity. The risks lurking during international or domestic transport are numerous and unpredictable—from accidents and fires to theft and natural phenomena. For this reason, choosing the appropriate cargo insurance clause is fundamental.
What are Institute Cargo Clauses?
Institute Cargo Clauses define the level of coverage and are divided into three main versions:
- Institute Cargo Clauses A: Offers the most extensive coverage („All Risks“), protecting goods from potential damage.
- Institute Cargo Clauses B: Focuses on risks such as fire, accidents, total loss, and theft.
- Institute Cargo Clauses C: Provides basic protection, primarily covering damage from fire or serious accidents during transport.
Choosing the right clause is not just a technical issue, but a strategic decision that should be linked to the value of the goods, the nature of the transport, and the business risk undertaken by each company.
Types of Insurance Policies
Depending on the needs and frequency of transports, two main types of insurance policies are available:
- Annual Insurance Policy: Coverage based on the annual turnover of the business.
- Open Cover Policy: A more flexible option, with a declaration per transport and premium calculation for each shipment separately.
In both cases, a high level of protection is offered at a competitive cost relative to the security provided.
With our many years of experience, at SAKAROGLOU A. & CO KG – MALETSCHEK & PARTNER HELLAS, we provide personalized guidance so that each business chooses the coverage that suits its needs. At a low cost, we ensure that every shipment reaches its destination with the maximum possible safety, protecting the uninterrupted operation of the supply chain.
The information, assessments, and statements contained in this document are provided for informational purposes only. While our company strives to ensure that the content is accurate and up to date, no warranties, express or implied, are given regarding the completeness, accuracy, or suitability of the information.
Any evaluations and conclusions are presented impartially and do not constitute legal, technical, or financial advice. The company accepts no liability for any direct or indirect damages that may result from the use of this information.