Marine cargo insurance: Institute Cargo Clauses A, B and C compared
By the TRS broking team24 Oct 20265 min read
The short answerInstitute Cargo Clauses A cover all risks of loss or damage to goods in transit, subject to listed exclusions. Clauses B and C cover only named events, with C the narrowest. The Incoterm in the sale contract decides whether the buyer or seller should insure.
How do A, B and C differ?
All three exclude things like poor packing, delay and inherent vice.
| Clauses | Scope |
|---|---|
| ICC A | All risks, subject to exclusions |
| ICC B | Named perils, including fire, sinking, collision, earthquake, water entry |
| ICC C | Fewer named perils; no cover for water damage or theft |
Who should insure: buyer or seller?
Under CIF and CIP, the seller arranges insurance for the buyer. Under FOB and similar terms, the buyer carries the risk once goods are loaded and should arrange cover.
Want this checked against your own policies?Talk to a broker
Single shipment or open cover?
Regular shippers usually take an open policy that covers every shipment automatically within agreed limits, instead of insuring each one.
Frequently asked questions
Does cargo insurance cover delay?
No. Loss caused by delay is excluded under all three sets of clauses.
Related cover
Marine cargo insuranceSeamless protection across global transit corridorsInland transit insuranceShielding domestic distribution networksStock throughput insuranceUnified supply chain asset protection
General information only, not advice on any particular policy. Cover depends on the policy wording and the insurer's terms.