Named perils
Cover that responds only to a listed cause of loss.
Definition
Institute Cargo Clauses (B) and (C) are named-perils wordings: they set out a closed list of causes — fire, explosion, stranding, collision, general average sacrifice, jettison and, in (B) only, water ingress, earthquake and washing overboard — and respond to nothing else. A loss with an unknown cause fails a named-perils policy even where the goods plainly arrived broken.
Why it decides money
The gap between (A) and (B) is not a small one. Theft, pilferage, non-delivery and ordinary handling damage are outside (B) and (C) altogether, and those are the causes most claims actually have.
Related terms
- All risks
- Cover written so that everything is insured unless an exclusion applies.
- Institute Cargo Clauses
- The standard market wordings for cargo cover — (A), (B) and (C).
More in what is covered
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