A natural event that is not caused and cannot be prevented by humans. No transporter can be held accountable for the event. Examples include a flood, storm, lightning, or earthquake.

Also called market value, it determines what the insurer will pay in the event of a loss. It is equal to the replacement cost minus the depreciation at the time of loss.

All-Risk coverage insures merchandise against physical loss or damage from any external cause, subject to policy terms, conditions, and exclusions. This is the broadest, most comprehensive kind of coverage for cargo.

This document serves as the contract of carriage between the shipper and the transporter. A transporter of cargo will issue a bill of lading, which lists goods being shipped and specifies the terms of their transport. It provides evidence of the apparent condition of the cargo when received by the carrier, and any damage to the cargo identified by the transporter when the cargo is received will be noted in this document.

The transporter of goods. “Common carriers” transport goods for the public, while “contract carriers” transport goods under separate contracts.

Determines a carrier’s liability in the event of shipment damage, loss, and delays. The extent of this coverage depends on the commodity type or freight class of the shipped goods.

A document presented by the insurance company or insured as proof that insurance is in effect.

When insurance is divided between multiple parties, splitting or spreading the risks across them.

Any raw material or product that is traded and often shipped in bulk. It becomes cargo once it is transported.

Goods that might have been damaged during transit but did not have their damage/loss/shortage noted on the POD or discovered until after delivery.

Any barge, truck, or other means of transport used to carry goods to a pier or airport for onward carriage aboard the principal conveyance.

A means of transportation, often vessels, aircraft, barges, railcars, trucks, and owned vehicles.

The front portion of an insurance policy that contains key information about the insured. It provides the name of the insured, address, policy period, location of premises, policy limits, and other key elements.

an official order issued by a legal authority.

an ocean marine insurance exclusion that eliminates coverage for loss of market and other consequential loss resulting from delayed voyages, regardless of the cause of the delay, even if from an insured peril.

International terms of sale that govern the costs, risks, and responsibilities between buyers and sellers. They define which party is responsible for each aspect during each stage of the delivery.

Loss caused by the goods themselves, instead of an external force causing the damage. Overripe bananas is an example.

This is the value of an entity or event that you wish to protect. An insurance policy mitigates the financial damage that would come if something happens to this entity or event. Entities not subject to financial loss from an event do not have an insurable interest and cannot purchase an insurance policy to cover that event.

as the result of a single occurrence.

Explains when an appliance or device arrives but no longer operates due to something other than external damage.

the parties who purchased insurance and who appear on the policy.

shall be deemed to mean a vessel carrying the interest from one port or place to another were such voyage involves sea passage by that vessel.

the maximum amount of cargo that is covered on each singular vessel, airplane, or truck.

Attention: Values of different loads can affect the maximum amount per conveyance.

the maximum amount that may be claimed as the result of a single occurrence.

A specific risk or cause of loss, such as an accident, covered by an insurance policy. If a peril is excluded, you will not have coverage for it.

Strikes, Riots and Civil Commotion Clause referring to physical loss or damage directly caused by strikers, locked-out workers, participation in labor disruption, and various types of riots.

Describes when ship or cargo, is saved from loss and/or damage.

Legal transfer of the insured’s rights to the insurer. After the insurer has reimbursed the damage to the insured, a subrogation (issued by the insured) authorizes the insurer to pursue recovery against the party which in fact is responsible for the loss and/or damage.

a bill of lading which states that the cargo has been stowed on deck. Such bills of lading are properly issued for cargo that must be stowed on deck because size does not permit stowage below decks, or where the hazardous character of the goods obliges they be kept on deck for easy jettison in the event of danger.