Common Exclusions & Terms in Cargo Insurance Policies

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Understand what cargo insurance does not cover, the standard exclusions, conditions, warranties and policy terms that affect your protection - and how to avoid unexpected claim refusals.

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UNDERSTANDING POLICY TERMS & LIMITATIONS

  • COMMON EXCLUSIONS

  • KEY CONDITIONS

  • CLAIM LIMITATIONS

  • WHAT’S NOT COVERED

A Practical Guide to Cargo Insurance Exclusions

All cargo insurance policies include exclusions, conditions and limitations. Understanding them is essential to prevent rejected claims and ensure your cover matches your risk.

Common Exclusions in Cargo Insurance Policies

These are the most frequent exclusions found in standard marine or goods-in-transit policies.


  • Inadequate or faulty packaging
  • Loss due to ordinary leakage or wear & tear
  • Damage caused by inherent vice of the goods
  • Loss arising from delay (non-physical loss)
  • Unexplained or mysterious disappearance (in some policies)

  • War, strikes, riots & civil commotion (optional add-on)
  • Nuclear, chemical or biological contamination
  • Wrongful or dishonest acts by the insured
  • Improper stowage by the insured
  • Temperature damage unless temperature cover is chosen

Key Terms, Warranties & Conditions

Policy terms outline the requirements needed for full protection. Breaching these may invalidate cover.


  • Security warranties (locks, alarms, GPS requirements)
  • Approved routes or carriers
  • Declaration obligations for high-value goods
  • Packaging requirements
  • Compliance with international transport regulations

  • Time limits for reporting losses
  • Documentation requirements (CMR, BOL, AWB)
  • Vehicle or vessel suitability conditions
  • Excess/deductible terms
  • Transit limits & geographical restrictions

How to Avoid Claim Rejections & Disputes

Proactive measures help ensure claims are paid smoothly and in full.


  • Use proper, insurer-approved packaging
  • Maintain accurate shipment documentation
  • Declare item values correctly
  • Follow warranty terms exactly
  • Track shipments with GPS where required

  • Report losses within the required timeframe
  • Use reputable carriers and logistics partners
  • Add optional covers for exclusions (e.g. war, SRCC)
  • Take photos of loading & packaging when possible
  • Ensure staff understand policy obligations

FREQUENTLY ASKED QUESTIONS

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What exclusions are common in cargo insurance policies?

Common exclusions include poor packaging, inherent vice, ordinary leakage or wear, losses due to delay, fraud, nuclear/chemical risks and temperature damage when temperature cover is not selected.

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Does cargo insurance cover temperature-sensitive goods?

Only if temperature-controlled cover is selected. Without it, many policies exclude heat or cold damage.

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Why do insurers exclude inherent vice?

Inherent vice refers to natural deterioration or characteristics of the goods themselves, not an external cause of damage, so it is excluded from cover.

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Are delays covered by cargo insurance?

No - cargo insurance generally only covers physical loss or damage. Financial loss due to delays is usually excluded unless covered by a specialist extension.

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Can exclusions be removed or amended?

Some exclusions can be negotiated or covered with add-on extensions, such as war cover, temperature-control cover or enhanced theft protection.

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