ICC-A is commonly described as the broadest cargo condition, ICC-C as the basic condition, and ICC-B as the middle option. Yet “A covers everything” and “C only pays when the ship sinks” are both unsafe shortcuts. ICC-A still contains significant exclusions. ICC-B and ICC-C respond only when the loss falls within a listed peril and the required causal connection is proven. Delay, ordinary shortage, inherent vice, unsuitable packing, war and strikes do not become insured simply because a certificate says ICC-A. This article compares the 1/1/09 Institute Cargo Clauses by coverage mechanism, listed perils, exclusions, transit duration, burden of proof, claim evidence and practical selection for consumer goods, raw materials, machinery, fragile cargo and high-value shipments. It also highlights the special treatment of piracy and the distinction between transit delay and loss caused by delay.

Prepared by TGIMEX · Updated: 21 July 2026 · Comparison basis: Institute Cargo Clauses 1/1/09

QUICK FACTS

ICC-A: broad cover through exclusions

Covers fortuitous physical loss or damage on an all-risks basis, subject to exclusions and the rest of the contract.

ICC-B: extended named perils

Includes ICC-C perils plus earthquake, volcanic eruption, lightning, water entry, washing overboard and specified total package losses during vessel loading/unloading.

ICC-C: basic named perils

Focuses on fire/explosion, major vessel or conveyance casualties, discharge at a port of distress, general average sacrifice and jettison.

All three have material exclusions

Delay, ordinary loss, inherent vice, unsuitable packing, certain insolvency situations, war and strikes are not automatically covered.

Version and endorsements control

ICC 1982, ICC 2009 and bespoke amendments may produce different outcomes; the letter A/B/C is not enough.

SCOPE

This article addresses ICC(A), ICC(B) and ICC(C) dated 1 January 2009, mainly for ocean and multimodal cargo involving an ocean leg. Pure air shipments should be checked against Institute Cargo Clauses (Air) or the wording expressly incorporated into the policy.

Claim outcomes depend on the schedule, cargo, voyage, insured value, deductible, war/strikes cover, cyber and sanctions clauses, warranties, endorsements and proximate cause. This article does not replace the insurer’s, broker’s, surveyor’s or legal adviser’s assessment of a live claim.

The standard 1/1/09 forms state that they are subject to English law and practice. For any live placement, read the policy, schedule, endorsements, governing-law clause and any mandatory local law; the A/B/C label alone is not determinative.

KEY TERMS

Term	Meaning	Operational role
Institute Cargo Clauses – ICC	London-market model cargo clauses; here “ICC” does not mean the International Chamber of Commerce, which publishes Incoterms®.	Set the coverage structure, exclusions, duration and duties of the assured.
All risks	Broad cover for accidental physical loss or damage, subject to exclusions.	Does not mean every loss or expense is payable.
Named perils	Cover applies only to specifically listed causes/events.	Under B and C, the claimant must link loss to an insured listed peril.
Proximate cause	The effective, dominant cause of the loss.	Used to test whether the loss falls within cover or an exclusion.
General Average	Extraordinary sacrifice or expenditure reasonably made for the common maritime adventure.	A, B and C include general average contribution subject to terms and exclusions.
Deductible/Excess	The amount retained by the assured under the policy.	Reduces recovery even where the event is covered.
Endorsement	An additional or amending clause attached to the policy.	May broaden, narrow or replace standard ICC wording.

HOW THE COVERAGE MECHANISM WORKS

1. ICC-A starts broad and then applies exclusions

Clause 1 of ICC(A) 1/1/09 covers all risks of loss of or damage to the insured subject matter except the exclusions in Clauses 4–7. The assured still has to prove fortuitous physical loss or damage during the insured transit; the insurer may then rely on an exclusion or another policy condition.

2. ICC-B and ICC-C require a listed peril

B and C do not begin with broad cover. The claimant must show that the loss is reasonably attributable to, or caused by, one of the listed events. Dents, shortage, rain wetting or breakage during handling are not automatically insured if the facts do not match the wording.

3. ICC-B adds a defined group of events to ICC-C

B adds earthquake, volcanic eruption or lightning; washing overboard; entry of sea, lake or river water into the vessel, hold, conveyance, container or place of storage; and total loss of a package lost overboard or dropped while loading onto or unloading from a vessel or craft. “Total loss of a package” does not mean every partial handling damage is covered.

4. War and strikes require separate clauses

Standard A/B/C 2009 exclude war and strikes/riot/terrorism or politically motivated acts under their respective exclusions. Separate Institute War Clauses and/or Institute Strikes Clauses are normally required, with their own duration, territorial, notice and premium terms.

5. Piracy is a material A versus B/C distinction

War exclusion 6.2 in ICC(A) 1/1/09 contains the words “piracy excepted”. Piracy is therefore not excluded by that capture/seizure exclusion and may be considered under A, subject to causation, evidence and all other policy terms. ICC(B) and ICC(C) do not contain this exception, so piracy generally requires a specific extension; adding standard Institute War Clauses does not necessarily fill the gap.

6. Warehouse-to-warehouse cover is not unlimited

All three 2009 forms use a similar transit structure. Cover starts when the goods are first moved at the named storage place for immediate loading to begin transit and ends at the earliest applicable termination event. The 60-day period after completion of discharge from the overseas vessel at the final port is a maximum cap, not an automatic guaranteed 60 days if cover has already ended at final unloading, non-ordinary storage, allocation/distribution or use of the container/conveyance as storage.

Keep duration and cause of loss separate. Clause 8.3 may keep the transit cover in force during delay beyond the assured’s control, but Clause 4.5 still excludes loss, damage or expense caused by delay, apart from amounts payable under the general-average provision in Clause 2.

Physical loss/damage→Transit period→A basis or listed B/C peril→Exclusions→Deductible and insured value→Claim evidence

Control point: ICC-A is broader but is not “every cause and every consequence” insurance. ICC-B/C are narrower and require stronger cause-to-wording evidence.

COMPARISON

Criterion	ICC-A 1/1/09	ICC-B 1/1/09	ICC-C 1/1/09	Selection meaning
Coverage mechanism	All risks subject to exclusions.	Extended named perils.	Basic named perils.	A reduces cause gaps but often costs more.
Fire/explosion	Covered unless excluded.	Listed.	Listed.	Potential response under all three.
Stranding/sinking/capsizing; overturning/derailment; collision/contact	Covered unless excluded.	Listed.	Listed.	Core B/C casualty group.
Earthquake/volcanic eruption/lightning	Covered unless excluded.	Listed.	Not listed.	Clear B advantage over C.
Sea/lake/river water entry	Potentially covered if fortuitous and not excluded.	Specifically listed, subject to wording.	Not listed as an independent peril.	B does not mean all wet damage from any water source.
Washing overboard / package dropped during vessel handling	Potentially covered subject to facts/exclusions.	Washing overboard plus total loss of a package lost/dropped during vessel loading/unloading.	Jettison only; no equivalent B extension.	Distinguish total package loss from partial damage.
Theft/non-delivery	May fall within A subject to evidence and exclusions.	Not a standard listed peril.	Not a standard listed peril.	B/C normally need an extension.
Ordinary handling dents/breakage without listed casualty	May be considered under A subject to exclusions and proof.	Usually outside cover absent a listed peril.	Usually outside cover absent a listed peril.	Important for fragile and frequently handled cargo.
Deliberate damage by wrongful third party	May be covered under A subject to war/strikes/terrorism and other exclusions.	Expressly excluded in standard B 2009.	Expressly excluded in standard C 2009.	B/C may need malicious-damage extension.
General average and salvage	Included under the clause.	Included under the clause.	Included under the clause.	ICC-C does not mean no GA cover.
Transit duration	Clause 8 structure similar to B/C.	Clause 8 structure similar to A/C.	Clause 8 structure similar to A/B.	Check named origin/destination, storage and changes.
Piracy	Not excluded by Clause 6.2 because of “piracy excepted”; recovery still depends on proof and the full policy.	No piracy exception in Clause 6.2; normally outside the standard wording unless extended.	Same as B.	Do not assume standard War Clauses automatically buy back piracy; read the actual wording.
War/strikes	Excluded from standard ICC; separate clauses needed.	Same.	Same.	Never infer from A/B/C alone.

DOCUMENTS AND DATA TO CHECK

Document/data	Source	Purpose	Fields to align
Policy/Certificate	Insurer/broker	Identifies assured, voyage, sum insured, ICC and endorsements.	Correct 1/1/09 or 1/1/82 version; A/B/C; war/strikes; deductible; goods/voyage.
Commercial Invoice & Packing List	Seller/shipper	Value, quantity, packing and cargo identity.	Description, price, packages, weights and Incoterms.
B/L, AWB or transport document	Carrier/forwarder	Voyage, transport dates and parties.	Receipt/delivery places, dates, packages and reservations.
EIR/POD/interchange records	Warehouse, terminal, carrier, consignee	Time and condition when damage/shortage was discovered.	Container, seal, date/time, damage and reservations.
Survey Report	Surveyor	Nature, extent, cause and quantum of loss.	Proximate cause, repairability, salvage and photographs.
Loss notice/claim letter	Assured	Prompt notification and claim presentation.	Policy, shipment, incident date, estimate and mitigation.
Carrier/bailee claim	Assured/consignee	Preserves recovery rights against third parties.	Applicable time limit, event details and delivery evidence.
Packing records and pre-shipment photos	Factory/warehouse/packer	Tests the packing exclusion and pre-transit condition.	Materials, restraint, moisture protection, seal and date.
GA, salvage and repair evidence	Adjuster/service provider	Supports reasonable costs and claimed amount.	Invoices, payment, GA guarantee/bond and salvage value.

HOW TO APPLY

Lock the exact wording: obtain policy, schedule, ICC version and all endorsements—not only the phrase “ICC-A”.
Profile cargo risk: value, fragility, moisture, theft, temperature, weight, packing and handling count.
Check trade terms: determine who must insure, who has insurable interest and when risk passes under the contract/Incoterms.
Select A/B/C by acceptable gap: sensitive, high-value or heavily handled cargo often warrants considering A; homogeneous lower-sensitivity cargo may use B/C if primary risks match.
Review extensions: war, strikes, theft/non-delivery, malicious damage, temperature variation, rejection, used machinery, duty or storage.
Confirm duration: named origin, destination, inland legs, transshipment, intermediate storage and destination changes.
At loss: mitigate, segregate damaged cargo, preserve evidence, notify insurer/broker and appoint a surveyor where required.
Preserve recourse: note damage on delivery and claim against carrier/warehouse/forwarder within applicable limits.
Map cause to clause: link each damage item to event, timing, evidence and policy provision.
Do not dispose or undertake major repairs prematurely: except urgent mitigation, retain approvals and records.

COMMON RISKS AND ERRORS

Error	Cause	Impact	Control
Treating ICC-A as every-loss cover	Reading only “all risks”.	False expectations for delay, inherent vice, ordinary loss, packing and war/strikes.	Read exclusions and endorsements.
Choosing ICC-C solely for lower premium	No cargo risk map.	Dents, breakage, wetting or loss not linked to a listed casualty may be uninsured.	Compare expected loss with premium difference.
Assuming ICC-B covers every water loss	Ignoring the sea/lake/river wording.	Rain, condensation, inherent moisture or another source may not qualify.	Prove water source and entry mechanism.
Not identifying the ICC version	Certificate uses only A/B/C shorthand.	Wrong 1982/2009/bespoke wording applied.	State full clause title and date.
No war/strikes extension	Assuming A includes it.	Gap for war, strikes, riots, terrorism/political motive.	Add separate clauses and check geography/duration.
Incorrect cargo or voyage declaration	Generic description or unreported route change.	Coverage, rating or warranty dispute.	Notify changes and amend the certificate.
Unsuitable packing	Packing/preparation is insufficient for ordinary transit incidents and was done by the assured/employees or before attachment of cover.	The packing exclusion may apply; the wording treats container stowage as packing.	Keep packing specifications, QA records and photos; verify who packed, when, and container condition.
Late notice and lost recourse	No POD reservation or carrier claim.	Weak causation evidence and impaired subrogation.	Receiving SOP and clear deadlines.
Comparing price but not deductible/endorsements	Quotes share the ICC-A label but differ materially.	Different net recovery and effective scope.	Line-by-line wording comparison.

REFERENCES

Sources reviewed on 21 July 2026. These are model wordings; the issued contract may amend them and must be read in full.

Source	Role	Note
Institute Cargo Clauses (A) 1/1/09	All-risks mechanism, exclusions and duration.	Reference wording, not the issued policy.
Institute Cargo Clauses (B) 1/1/09	B named perils and exclusions.	Contains specific additions over C.
Institute Cargo Clauses (C) 1/1/09	Basic C named perils.	Not every transport accident is covered.
Institute War Clauses (Cargo) 1/1/09	Separate war cover reference.	War duration differs from A/B/C transit cover.
Institute Strikes Clauses (Cargo) 1/1/09	Separate strikes/riot/terrorism-related cover reference.	Contains its own exclusions and conditions.
Lloyd’s Market Association – Joint Cargo Committee	Current market source for JCC activity and model wordings.	Model wordings are illustrative and may be amended or replaced by agreement.
IUMI Cargo Tutorial	Industry education on exclusions, duration, war/strikes and claims.	Supports structured policy review.

Translation note: This article is operational guidance and not a legal opinion on any specific policy or claim.

FAQ

1. Does ICC-A always cover theft?

No conclusion should be drawn from the letter A alone. Theft may fall within broad cover subject to evidence, exclusions, deductibles, custody conditions and endorsements.

2. Does ICC-B cover rainwater damage?

Not automatically. Standard B refers to sea, lake or river water entering listed locations; the source and mechanism must be established.

3. Does ICC-C cover general average?

Yes, under its general average and salvage provisions, subject to exclusions and the contract.

4. Does ICC-A include war and strikes?

Not under standard ICC-A 1/1/09. Separate Institute War and Strikes Clauses or equivalent endorsements must be checked.

5. Must a CIF seller buy ICC-A?

No. Under Incoterms® 2020, CIF defaults to minimum cover equivalent to ICC(C), unless the sales contract requires broader cover; CIP defaults to broader cover equivalent to ICC(A) or similar clauses.

6. Are ICC 1982 and 2009 identical?

No. Wording on packing, insolvency, unseaworthiness, duration and change of voyage differs; the certificate must identify the version.

7. Is ICC-A sufficient for used machinery?

Not necessarily. Used-goods, replacement, depreciation, rust, packing, survey warranty and other exclusions or conditions may need specific treatment.

APPLICATION NOTE: This comparison is based on the standard 1/1/09 wordings and is not a promise of indemnity. The schedule, endorsements, proximate cause, evidence, mitigation, preservation of recovery rights and governing law determine the actual claim result. The standard 1/1/09 forms state English law and practice and may be modified by the issued policy or endorsements.

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