Sanctions limitation clause
Cover falls away where paying would breach sanctions law.
Definition
A clause stating that the insurer provides no cover and pays no claim to the extent that doing so would expose it to a sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions of the relevant jurisdictions. It is close to universal on cargo wordings, because cargo moves between jurisdictions by definition.
Why it decides money
It is why a quote asks about the parties and the route, and why screening happens before a certificate is issued rather than after a loss.
Related terms
- Institute War Clauses (Cargo)
- The separate wording that buys back the war exclusion.
More in law and duties
InsuranceScanner is an insurance intermediary, not an insurer — see the Terms for our role. Nothing here is a personal recommendation that a particular cover, sum insured or deductible is suitable for you. Where anything on this page conflicts with the certificate, policy schedule or wording issued by an insurer, that document governs.