What does ICC-A (Institute Cargo Clauses A) cover?

ICC-A is the broadest standard marine cargo cover: all risks of loss or damage to cargo from any cause, except specifically excluded events (war, strikes, inherent vice, intentional misconduct of the insured, delay alone). Theft, partial loss, water damage, container collapse, vessel sinking, fire, jettison — all covered.

What's covered for cargo value?

Standard insured value is CIF + 10% — i.e., your commercial invoice value plus shipping cost plus a 10% mark-up to cover expected profit and customs duty already paid. You can insure higher (declared value insurance) if needed.

Port operation showing cargo loaded onto vessel — protected by marine insurance

All-Risk Marine, Air & Rail Coverage

Cargo Insurance That Actually Pays Out

All-risk cargo insurance under Institute Cargo Clauses A (ICC-A) — placed with PICC, Ping An, China Pacific Insurance, and Lloyd's syndicates. Premium typically 0.3–0.6% of CIF value. English-language certificate issued same-day. Direct claim settlement, no carrier blame-game.

Insurance Partners: PICC 人保 PING AN 平安 CPIC 太平洋 LLOYD'S

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Why It Matters

The Liability Math Most Shippers Don't See Until It's Too Late

Here's the conversation we have with new clients almost every week: "I don't need cargo insurance — the carrier is responsible if anything goes wrong, right?"

Wrong. Under the Hague-Visby Rules that govern ocean freight, the carrier's maximum liability is roughly USD 670 per package or USD 2 per kilogram — whichever is higher. For airfreight, the Montreal Convention caps carrier liability at 22 SDR per kilogram (~USD 30). Translation: if your $80,000 container of consumer electronics goes overboard, the ocean carrier pays you roughly $5,000. If your $50,000 air shipment of medical devices is destroyed in transit, the airline pays you maybe $9,000.

Cargo insurance under ICC-A pays the actual CIF value plus 10% — your real exposure. The premium is 0.3–0.6% of cargo value. For a $50,000 shipment that's $150–300 to protect against a six-figure loss. The math is obvious.

All-Risk Cover (ICC-A)The broadest standard cargo cover — all causes of loss or damage except specifically named exclusions.
Warehouse-to-WarehouseCover starts when cargo leaves the shipper's premises and ends when it arrives at the final consignee's warehouse.
English Certificate Same-DayRequired for LC payments, customs in some destinations, and brand-owner internal compliance.
Direct SettlementWe coordinate claims with the insurer directly — you don't argue with the carrier.

Container ship at port — insured cargo in transit

Coverage Comparison

ICC-A vs ICC-B vs ICC-C: What's the Difference?

Three Institute Cargo Clauses define the standard cargo cover tiers. We default to ICC-A — the others exist only for specific cost-sensitive use cases.

Coverage Item	ICC-A (All-Risk)	ICC-B (Named-Perils)	ICC-C (Limited)
Fire, explosion, vessel sinking	✓	✓	✓
General average sacrifice	✓	✓	✓
Jettison	✓	✓	✓
Washing overboard	✓	✓	✗
Sea water entry to vessel/container	✓	✓	✗
Earthquake, volcanic eruption, lightning	✓	✓	✗
Theft, pilferage, non-delivery	✓	✗	✗
Breakage, denting, scratching	✓	✗	✗
Water damage (rain, freshwater)	✓	✗	✗
All other causes (unless excluded)	✓	✗	✗

Excluded under all three: war, strikes, inherent vice, ordinary leakage, insufficient packing, delay alone, intentional misconduct of insured. War and strikes can be added back via War & Strikes Clauses at a small additional premium.

Premium Reference

Typical Premium Rates by Cargo Type

Indicative — actual rates depend on route, packaging, value, and policy excess. We quote firm rates after seeing your shipment specs.

Cargo Category	Typical Rate (% of CIF)	Notes
General industrial goods, machinery	0.20% – 0.35%	Lowest tier, sturdy packaging, low fragility
Textiles, apparel, footwear	0.25% – 0.40%	Standard for soft goods
Consumer electronics	0.35% – 0.60%	Theft-risk premium
Furniture, home goods	0.30% – 0.50%	Breakage risk for assembled items
Glass, ceramics, fragile	0.50% – 0.90%	High breakage risk
Food, beverages (non-reefer)	0.40% – 0.65%	Spoilage / contamination clauses
Reefer cargo (pharma, F&B)	0.50% – 1.20%	Temperature deviation cover
Used machinery, second-hand goods	0.80% – 1.50%	Higher risk, often named-perils only
War & Strikes endorsement	+ 0.05% – 0.15%	Add to any of the above

Coverage in Motion

Where Your Cargo Is Insured, Warehouse to Warehouse

ICC-A "transit clause" covers from departure warehouse to final destination warehouse, including all in-between handovers.

Vessel

Ocean Transit

Highest single-event severity — fire, sinking, container loss

Aircraft landing — air freight ground handling phase

Air

Air Ground-Handling

Where most damage happens

Road

Trucking Legs

Theft, accident

Destination

Final Warehouse

Cover ends here

Origin

Cover Starts

Departure warehouse

Claim Process

What to Do If Cargo Is Damaged or Lost

Speed of action is everything. Document immediately, notify within 24 hours, file within 30 days.

Document on Receipt

Photograph external damage to the container or carton before opening. Sign the delivery receipt as "received with damage" — never sign clean if there's visible damage.

Notify Within 24 Hours

Email us with photos and a brief description. We notify the insurer immediately to preserve claim validity. Late notification is the #1 reason claims get reduced or refused.

Survey & Documentation

For losses over USD 5,000, the insurer typically appoints a surveyor (Lloyd's agent or local equivalent). We coordinate. Keep all damaged goods until survey is complete.

Settlement (4–8 Weeks)

Standard claims settle within 4–6 weeks for documented cases. Complex losses or carrier-recovery cases (subrogation) can take 8–12 weeks. We push for expedited settlement.

Common Exclusions

What ICC-A Doesn't Cover (And How to Handle It)

Even all-risk has exclusions. Know them upfront so you're not surprised at claim time.

War & StrikesExcluded by default. Adds at +0.05% to +0.15%. Always include for Middle East, Black Sea, and high-risk lanes.
Inherent ViceDamage from the nature of the goods themselves (e.g., chocolate melting at normal tropical temps). Mitigate with packaging and reefer.
Insufficient PackingCover voided if a surveyor judges packing was inadequate for the mode. Use ISTA-tested packaging for high-value or fragile goods.
Delay AloneIf cargo arrives late but undamaged, no claim. Use carrier contractual penalties or air-freight upgrades for time-sensitive cargo.
Pre-Shipment DamageDamage that occurred before the cover started. Surveyor will date the damage.

Package handover — proof of delivery moment when insurance cover ends

When Insurance Pays For Itself

Four Real Loss Scenarios We've Settled

Anonymized real-world cases, illustrating where cargo insurance changes the outcome.

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Container Overboard

FCL container of furniture lost from a vessel during heavy weather in the Pacific. Carrier liability: ~USD 7,000 (Hague-Visby cap). Insured value: USD 64,000. Insurer paid in full minus deductible in 5 weeks.

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Air Cargo Fire

Lithium-ion incident in an air cargo ULD damaged 4 of 6 pallets. Carrier paid the Montreal Convention cap ~USD 8,000. Insurer paid the full CIF loss of USD 47,000 after surveyor confirmation.

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Drayage Theft

Container hijacked from a Chinese highway during port drayage. Cargo value USD 28,000. Insurer paid full CIF+10% within 6 weeks. Carrier denied liability citing "unforeseeable criminal act."

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Water Damage

Sea water entered a 40HQ via a damaged door seal mid-transit. 60% of cartons water-damaged. Surveyor confirmed cause; insurer paid pro-rata loss USD 19,000 against insured value USD 32,000.

FAQ

Cargo Insurance Questions, Answered

Do I really need cargo insurance?

Yes — carrier liability is capped at roughly USD 670/package or USD 2/kg for ocean (Hague-Visby), and ~USD 30/kg for air (Montreal Convention). For most cargo this recovers a tiny fraction of actual value. ICC-A cover pays CIF + 10%.

What does ICC-A cover?

All risks of loss or damage from any cause, except specifically excluded events (war, strikes, inherent vice, delay alone, intentional misconduct, insufficient packing). Theft, breakage, water damage, fire, sinking, jettison — all covered.

How much does cargo insurance cost?

Typical premium 0.3–0.6% of CIF value, depending on cargo type and route. Minimum premium usually USD 40–60.

How fast can I get a certificate of insurance?

Same-day. We issue an English-language certificate within 4 working hours of receiving commercial invoice, route and ETD.

What insured value should I declare?

Standard is CIF + 10% — commercial invoice value plus shipping plus 10% mark-up to cover expected profit and any duty already paid. You can insure higher (declared value) if needed.

Are there cargo types you won't insure?

Most cargo is insurable. Specific exclusions or higher rates apply for: live animals, used machinery (second-hand goods), tobacco, alcohol above certain thresholds, fine art (separate specialist policy), and high-risk currency/precious metals. We'll flag any underwriter requirements upfront.

Does insurance cover delay?

No. Cargo insurance covers physical loss or damage, not financial loss from delay alone. For time-sensitive cargo, manage timing through mode selection and carrier penalties, not insurance.

Can I add War & Strikes cover?

Yes — at +0.05% to +0.15% premium. Strongly recommended for Middle East lanes, Black Sea, and any region with active geopolitical risk.

Insure Your Next Shipment

Send us your commercial invoice, route and ETD. We'll issue an ICC-A certificate same-day.

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