Marine cargo Institute clauses

Category: Marine and cargo clauses · Reviewed by the Apex broking team · Last reviewed 2026-08-22 · ~3 min read

Definition

“Institute clauses” is the collective name for the standard-form clause sets used in the London marine market and, in practice, in most international cargo placements written on English terms. They originate with the Institute of London Underwriters, and the modern versions are maintained for the market rather than by any single insurer. Each set is identified by a name, a clause number and a date, and the date is part of the identity: the 1/1/82 and 1/1/09 versions of the cargo clauses are different contracts and should never be treated as interchangeable.

The three cargo sets

The core of a cargo placement is one of three sets, conventionally lettered A, B and C. The A set is the widest, written on an all-risks basis subject to exclusions. The B and C sets are named-perils covers: they list what is insured rather than what is not, with B wider than C. Choosing between them is a commercial decision driven by commodity, packing, route and mode. The practical differences are set out in cargo clauses A, B and C: the differences, with the detail of the narrower sets in Institute Cargo Clauses (B) and Institute Cargo Clauses (C).

War and strikes

War risks and strikes, riots and civil commotion risks are excluded from all three cargo sets and are bought back through separate clause sets written for that purpose. The strikes cover is dealt with in Institute Strikes Clauses (Cargo). The war set operates on a different duration basis from the main cargo cover, generally attaching and terminating with the waterborne or airborne leg rather than running warehouse to warehouse, which is why a cargo programme can be fully covered on the main set and yet uninsured for war risk while goods sit ashore. The two sets are also subject to separate cancellation provisions.

The paramount exclusions

Sitting across the whole placement is a group of short paramount exclusions, of which the most commonly seen is CL370, the radioactive contamination, chemical, biological, bio-chemical and electromagnetic weapons exclusion. A paramount clause overrides anything in the contract inconsistent with it, so it takes effect regardless of how wide the insuring clause is. Cyber exclusions are now normally handled the same way, following the market-wide move away from silent cyber — see cyber exclusions in non-cyber policies.

Duration and transit

Cargo cover is transit cover, not location cover. The duration clause in the cargo sets is what determines when risk attaches and when it ends, and it is drafted around the ordinary course of transit, with time limits after discharge and provisions for change of voyage, termination of the contract of carriage and deviation. Most disputed cargo claims turn on duration and on the exclusions for insufficiency of packing and inherent vice rather than on the insuring clause itself.

How to read a placement

Work in this order. Identify which cargo set applies and its date. Check whether war and strikes are bought, on what terms and with what duration. List the paramount exclusions. Read the duration clause against the actual logistics chain, including any period in a third-party warehouse. Then read the endorsements, because a manuscript endorsement will usually be the thing that changes the answer. Underlying all of it is the Marine Insurance Act 1906, which supplies the default rules the clauses vary.

Version control

Because the sets are dated, the single most common documentary problem on a cargo file is a certificate or open-cover schedule that names a clause set without a date, or that names one date while the slip references another. If a claim is contentious, the version determines the wording of the exclusions. Ask for the dated set to be attached to the contract rather than referenced by name.

Frequently asked questions

Are the Institute clauses a policy?

No. They are standard clause sets that are incorporated into a policy or open cover. A complete contract also needs the schedule, the duration and valuation provisions, the paramount exclusions and any endorsements.

Why are war and strikes separate?

Both are excluded from the three cargo sets and are written back through their own clause sets, on their own duration and cancellation terms. That is why goods can be covered for transit perils and uncovered for war risk at the same moment.

Does the date after the clause name matter?

Yes. The 1/1/82 and 1/1/09 versions differ. Always incorporate the dated version rather than the name alone, and make sure the slip, the open cover and any certificate agree.

Related entries

• Cargo clauses A, B and C: the differences
• Institute Cargo Clauses (B)
• Institute Cargo Clauses (C)
• Institute Strikes Clauses (Cargo)
• CL370 RACE clause
• Marine cargo all risks
• General average

This entry is part of the Apex Insurance Wiki. Position stated as at August 2026. Last reviewed 2026-08-22. Next review: 2027-02-22. It is general insurance information, not legal advice, and not regulated advice on a specific policy.

Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority (FRN 724952). This page is general information, not advice on a specific policy.