Cargo insurance conditions and clauses

Cargo insurance can be effected on different conditions by using various clauses. All the conditions have one thing in common; the goods can only be insured against unexpected, fortuitous losses. A loss which can be considered a certainty rather than an accident – such as normal wear and tear – cannot be insured against.​​​​​​​​​​​​​​​​​​​​​​

Cargo ISPS Endorsement and Cargo ISPS Forwarding Charges Clauses

Security code ISPS (International Ship and Port Facility Security Code) issued by the International Maritime Organisation (IMO) entered into force in July 2004. This security code originates from the 11 September 2001 terrorist attacks in the US and the purpose of it is to prevent or at least to minimise the threat of maritime terrorism. In accordance with the security code all ports and vessels in the international traffic have to comply with the ISPS requirements.

Consequently, London market has produced two new insurance clauses that we have adopted as of 1 January 2006. The following clauses will be included in all cargo insurance policies: Cargo ISPS Endorsement and Cargo ISPS Forwarding Charges Clause (see the enclosures). In accordance with the clauses the cargo insurance does not cover damage occurred during transport on a vessel without the ISPS code if the policyholder was aware of the non-existent ISPS code or did not demand it when agreeing on the contract of carriage. 

Wareho​use risks in USA and Canada

(USA & Canada Endorsement Race)

The cargo insurance does not cover damage caused by radioactive pollution, nor by chemical and biological weapons. After the accident of Tshernobyl and the WTC catastrophe, the limitations were revised into their present extent, but the regional legislation of USA and Canada has been changed after the events in 2001.

Fires in risks in certain areas of these countries must always be insured notwithstanding the cause of the fire.Therefore, an additional clause has been drawn up at the London market and is included in all cargo insurance policies since 1 January 2006. The clause is applied to the warehouse risks in USA and Canada. The clause will cancel the limitation where it is conflicting with the local legislation.

The additional clause is:

U.S.A. & Canada endorsement for the institute radioactive contamination, chemical, biological, bio-chemical and electromagnetic weapons exclusion clause 10/11/03.

We will refer to the clause as USA Canada Endorsement Race.

Cargo Insurance Clauses

Cargo ISPS Endorsement​ ​(pdf, 11 KB)

Cargo ISPS Forwarding Charges Clause (pdf, 78 KB)

USA & Canada Endorsement Race (pdf, 8 KB)

Cargo Insurance Restrictions

 A list of countries with  restrictive measures in the field of Marine Insurance​ (pdf 264 KB)

​​​​​Sanction Clause​

Sanction limitation and exclusion clause JC2010 014​ (pdf 19 KB)

Most common Institute Clauses and other English clauses

Domestic conditions Cargo Insurance

​Domestic Cargo Insurance conditions in Finland

​Domestic Cargo Insurance conditions in Denmark

Domestic Cargo Insurance conditions in Norway

Domestic Cargo Insurance conditions in Sweden