What kind of damages does the Institute Cargo Clause cover?

The Institute Cargo Clause is specifically designed to provide broad coverage for goods in transit and includes protection against a variety of risks, including losses from civil war and civil commotion. This type of damage is significant for cargo insurance because it can result in severe and unpredictable losses that are not strictly tied to typical shipping risks.

The clause typically covers various perils that goods might face during transport, but one of its key components is addressing the impact of civil unrest, including wars or civil disturbances that can directly affect the safety of the cargo. This coverage is essential for importers and exporters operating in regions where such unpredictable events may occur, ensuring that their financial interests are safeguarded against a wider range of risks.

In addition, while shipping losses and damage occurring during unloading are relevant to cargo insurance, they are generally covered under different conditions or clauses. The Institute Cargo Clause aims to address the more extensive and potentially catastrophic risks presented by civil conflict, which can disrupt logistics, damage goods, and lead to significant financial loss.