Category: Marine cargo insurance · Reviewed by the Apex broking team · Last reviewed 2026-08-21
Category: Marine cargo insurance Also known as: ICC A vs B vs C, cargo clauses comparison, all risks vs named perils cargo cover Related concepts: Institute Cargo Clauses (B), Institute Cargo Clauses (C)
The Institute Cargo Clauses come in three graded sets — A, B and C — that share the same framework of exclusions, transit provisions and claims conditions but differ in the breadth of the risks insured. The A clauses cover all risks of loss or damage to the cargo, subject to the exclusions; the B and C clauses cover only the perils they name, with B the wider of the two.
The most important difference is not any single peril but who must prove what. Under the all-risks A clauses, the insured needs to show only that the cargo was lost or damaged by some fortuity during the insured transit; it is then for the insurer to bring the loss within an exclusion if cover is to be declined. Under the named-perils B and C clauses the position reverses: the insured must positively prove that a listed peril caused the loss. Where cargo arrives damaged and the cause is unclear — as it often is after a long multimodal transit — that difference frequently decides the claim.
| Peril category | ICC A | ICC B | ICC C |
|---|---|---|---|
| Fire, explosion; vessel stranded, grounded, sunk or capsized; conveyance overturning or derailment; collision; discharge at a port of distress | Yes | Yes | Yes |
| General average sacrifice; jettison | Yes | Yes | Yes |
| Washing overboard; entry of sea, lake or river water; earthquake, volcanic eruption, lightning; package lost during loading or discharge | Yes | Yes | No |
| Theft, pilferage, non-delivery; handling and stowage damage; rainwater and other accidental causes not listed | Yes (as all risks, subject to exclusions) | No | No |
| Malicious damage | Yes | No (can be added back) | No (can be added back) |
| Standard exclusions (wilful misconduct, ordinary leakage and wear, insufficient packing, inherent vice, delay, insolvency of carriers, war, strikes) | Apply | Apply | Apply |
All three sets cover the cargo owner’s general average and salvage contributions, and all three exclude war and strikes perils — strikes cover is restored by the Institute Strikes Clauses (Cargo) where required.
The choice is driven by the cargo and the trade. Most general merchandise, manufactured goods and anything vulnerable to theft or handling damage is insured on A terms, because the losses that actually happen to such cargo are the ones only A covers. B suits some bulk and semi-bulk cargoes where water damage and casualty perils are the realistic exposures. C suits robust, low-value bulk cargo and situations where a contract merely requires insurance at a minimum level, conventionally expressed as cover no less than the C clauses. Premium follows breadth, but the saving between sets should always be weighed against the claims most likely to occur for that cargo — and against who will carry the burden of proof when they do.
Certificates and sales contracts refer to the three sets by letter alone, and the letter carries the whole difference. A buyer under a CIF contract entitled to minimum cover, a bank taking a certificate as security, and a shipper choosing terms for its own account are each making a decision about which losses stay insured and which stay retained. Reading the letter as shorthand for the table above is the quickest way to make that decision an informed one.
This entry is part of the Apex Insurance Wiki. Last reviewed 2026-08-21. Next review: 2027-02-21.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
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