Scenario: a broker offers “all risks” insurance for a container of cutting edges bought on a delivered-at-port basis. Direct answer: “all risks” does not mean every loss. The standard Institute Cargo Clauses (A) 1/1/09 wording covers all risks of loss or damage, except what its exclusion clauses remove.
Exclusions that matter for steel and carbide freight
| Clause | Excluded | Why a buyer should care |
|---|---|---|
| 4.2 | Ordinary leakage, ordinary loss in weight or volume, ordinary wear and tear | Light surface rust on bare steel may be argued as ordinary, so ask how corrosion claims are handled |
| 4.3 | Insufficient or unsuitable packing or preparation, where done by the insured or its employees, or before the insurance attaches; “packing” includes stowage in a container | Badly blocked or poorly packed edges are a classic dispute; the packing is your supplier’s work |
| 4.4 | Inherent vice or nature of the goods | Applies to loss from the goods’ own nature |
| 4.5 | Delay, even if caused by an insured risk (general-average expenses excepted) | A missed season because the ship was late is not covered |
| 4.6 | Insolvency or financial default of vessel owners, managers, charterers or operators, in stated conditions | Carrier failure is a risk to price separately |
| 6, 7 | War, capture and seizure; strikes, riots and terrorism | Often bought back separately; ask |
What to do with this
The clause wording is the policy, and the summary is not.
- Ask the broker for the full clause wording and the policy schedule, not a summary. Check the clause set and the date (the 2009 clauses, for instance).
- Ask who packs and stows. Insist on photos of the loaded container, because clause 4.3 turns on packing.
- Decide how you will measure “ordinary” rust: coating, VCI paper, or sealed packaging reduce the argument.
- Add delay cost to your own risk list. Insurance will not pay for a late shipment’s lost season.
- Confirm the insured value basis and the period of cover under the Transit Clause (clause 8).
A last practical point: report any damage to the carrier and the insurer within the time limits in your documents, and keep the damaged goods available for inspection. A claim that arrives late or after the goods are repacked is harder to support.
Boundary: clause numbers come from the standard 2009 wording; your policy may use different or amended terms. This is not insurance or legal advice. Policy wording, not this summary, decides a claim.
Sources and further reading. External references are dated; where a figure is quoted, the link shows where it came from.
Published by If P&C Insurance (standard clause wording): Institute Cargo Clauses (A) 1/1/09 (2009 wording) ↗Incoterms for Blade Buyers: Choosing the Term That Fits Your Risk Appetite ↗Landed Cost for Imported Plow Blades: Freight, Duty and Duty Drawback Basics ↗Sourcing carbide wear parts guide ↗If You Paid IEEPA Duties on Imported Edges: How Refund Claims Work ↗ISF 10+2 Filing for Ocean Imports: Who Files, What Data, What Deadlines ↗Does Sintering Change Country of Origin? Substantial Transformation in Plain English ↗
