CARGO INSURANCE PROGRAM
A marine open cargo policy is designed for the frequent shipper. It covers approved merchandise that shippers are obligated to insure under terms of sale. This eliminates the need for shippers to negotiate terms, conditions, rates and limits for each insured shipment. Under your open cargo policy, goods can be insured All-Risks, subject to Institute Cargo Clause (A); or Free of Particular Average (FPA), subject to Institute Cargo Clause (B) or (C). These coverage variations are explained below.

 ICC (A) - All-Risks Coverage

All-Risks is the most common form of cargo insurance. An All-Risks policy insures approved general merchandise against risks of physical loss or damage from external causes. Approved general merchandise includes new packaged goods listed in the commodity schedule. All-Risks policies, however, do not cover all losses possible in the course of an international shipment (see rate schedule).

Some perils typically not covered in an All-Risks Policy:

1. Improper packing
2. Abandonment of cargo
3. Rejection of goods by Customs
4. Failure to pay or collect accounts
5. Inherent vice (infestation or loss due to the nature of the product itself)
6. Employee conversion or dishonesty
7. Losses due to delay or loss of market
8. Goods subject to an on-deck bill of lading
9. Losses caused by temperature or pressure
10. Used goods
ICC (B) / (C)

Sometimes due to the nature of the product or shipping conditions, only limited marine cargo insurance can be obtained. IIC (B) and (C) are limited coverage that usually applies to used merchandise, waste materials and goods shipped subject to an on-deck bill of lading. It covers partial & total losses due to specified perils. While IIC (B) and (C) are not as complete as All-Risks coverage, it is better than having no insurance at all.

Note: Refer to your policy for complete terms, coverage amounts, conditions and exclusions.