All risks cargo insurance
under Institute Cargo Clauses (A)
All risks cargo insurance means Institute Cargo Clauses (A): the insurer is liable for loss or damage from any cause except the exclusions listed in the policy. It is the usual choice for electronics, machinery, consumer goods and anything that can break, get wet or go missing.
ATF is not an insurer: as the forwarder we collect the cargo data, obtain terms from the insurance company and get the policy issued before shipment; if a loss occurs we arrange the survey and the claim. The sum insured is based on the full value including freight, usually CIF + 10%.
Specification
Specification · All risks cover (ICC A). Standard terms · rate and deductible are confirmed by the insurer per shipment
Service
- Clauses
- ICC (A) 2009 — all risks except exclusions
- Cargo
- containerised, LCL and general cargo
- Options
- war and strikes, reefer clauses
Terms
- Duration
- warehouse to warehouse
- Sum insured
- usually CIF + 10%
- Currency
- USD / RUB
Logistics
- Before shipment
- quote, policy issuance
- In transit
- insurer notified of changes
- At delivery
- inspection, survey, claim
Price
- Base
- premium — % of the sum insured at the insurer's rate
- Extras
- extra clauses, survey — on request
Service flow
- 01
Cargo details
We collect the data: cargo and packing, invoice value, route and legs, shipment dates, delivery term. For reefer, dangerous and used goods the insurer will ask for more details.
same day - 02
Insurer's terms
We request the rate, deductible and extra clauses from the insurer: war and strikes, and for reefer cargo — breakdown of refrigerating machinery. We confirm packing and survey requirements.
1–2 working days - 03
Policy issuance
The policy or certificate is issued before transit starts. We check that the cargo description, sum insured and route match the invoice and transport document — discrepancies are later used against the assured.
before shipment - 04
Transit under cover
The cargo is covered warehouse to warehouse. If the vessel, route or discharge port changes or the cargo is held in storage, we notify the insurer: with prompt notice the cover remains in force.
throughout transit - 05
Delivery and claims
We inspect the cargo at delivery. If it is damaged: remarks in the carrier's documents, a surveyor call-out, notice to the insurer and a claim file.
on delivery day
Problems
The importer bought CIF and assumes the cargo is insured, but the seller took out a minimum ICC (C) policy with its local insurer: wetting and theft are not covered, and the claim has to be pursued abroad.
We check the seller's policy before shipment. If the cover is insufficient, we arrange the buyer's own ICC (A) policy or advise stating (A) in the contract.
The sum insured is too low — taken from the invoice without freight and costs. In a loss the payout is reduced in proportion to the underinsurance.
We set the sum at CIF + 10% or the full value with freight; by agreement with the insurer we include duties and taxes.
Claim declined because of packing: the goods travelled in cartons without crating or securing in the container, and the insurer relies on the insufficient packing exclusion.
Before shipment we check packing and securing against the insurer's requirements; for fragile and valuable cargo we order a stuffing survey with photos.
Documents
To price and issue the policy we need data on the cargo, its value and the route. The delivery term decides who insures: under FOB and FCA the buyer, under CIF and CIP the seller — often with cover the importer finds insufficient.
Incoterms
- FOB / FCA
- risk passes to the buyer at the port or place of shipment — the buyer insures
- CIF
- the seller insures at least ICC (C) for 110% of the price — too little for valuable cargo
- CIP
- under Incoterms 2020 the seller must insure on ICC (A) for 110%
Documents
- Invoice
- commercial invoice — the basis of the sum insured
- Packing List
- number of packages, weights, type of packing
- Transport document
- B/L, SMGS, CMR or AWB — route and carrier
- Contract
- the delivery term shows who must insure
- Insurance application
- cargo, packing, route, dates, sum insured
FAQ
Loss of or damage to the cargo from any external cause except the exclusions listed in the policy: casualty, breakage, wetting, theft, non-delivery of whole packages, dropping during handling. General average contributions and salvage charges are also covered. It is the broadest of the standard Institute Cargo Clauses.
The assured's wilful misconduct, ordinary leakage and wear and tear, insufficient or unsuitable packing (including container stuffing by the assured), inherent vice and delay — even when caused by an insured peril. War and strikes are excluded and bought separately under the Institute War Clauses and Institute Strikes Clauses (Cargo).
Usually CIF + 10%: invoice value, freight, premium and 10% for expected profit and costs. That minimum — 110% of the contract price — is what CIF and CIP require under Incoterms 2020. If the sum is too low, the payout is reduced in proportion to the underinsurance.
ICC (A) covers all risks except exclusions, while (B) and (C) cover only named events: fire, stranding, collision, derailment and the like. Theft, handling breakage and shortage are not covered by (B) or (C). Also, under (A) the assured only has to show the loss happened in transit; under (B) and (C) it must prove a named peril caused it.
Carrier liability is limited and slow to prove. Under the Hague-Visby Rules a sea carrier is liable for no more than 666.67 SDR per package or 2 SDR per kg gross, and is exempt for instance for nautical fault; a road carrier under CMR pays up to 8.33 SDR per kg. Insurance pays the insured value, and the insurer then deals with the carrier.
The shipowner declares general average under the York-Antwerp Rules and releases cargo only against security: an average bond plus an insurer's guarantee, or a cash deposit. Without a policy the cargo owner pays the deposit, and the container is not released until then. Under ICC (A), (B) or (C) the insurer provides the guarantee and the contribution is covered.
As a rule the policy is issued before transit starts. Some insurers accept cargo already in transit against a declaration that no incident is known, but this cannot be relied on. For regular shipments an open cover is safer: each shipment is covered automatically if declared on time.