Marine insurance excludes a fixed list of risks under all ICC A, B, and C clauses — including war, strikes, inherent vice, poor packing, delay, and willful misconduct — some of which can be reinstated through specific add-ons like War Clauses or SRCC, while others (like inherent vice or delay) can never be insured under any marine policy.

Exclusions Common to ICC A, B, and C

Certain exclusions apply across every Institute Cargo Clause — even the broadest, ICC A (all-risk) policy. These are considered standard market exclusions in marine insurance worldwide.

1. Willful Misconduct of the Insured
Loss deliberately caused or contributed to by the exporter or their agents is never covered.

2. Ordinary Leakage, Wear and Tear
Normal loss in weight, volume, or condition that occurs during transit as a matter of course.

3. Inadequate or Improper Packing
Damage resulting from packing or preparation that was insufficient to withstand ordinary transit conditions.

4. Inherent Vice or Nature of the Goods
Loss caused by the goods' own natural characteristics — self-combustion, natural spoilage, or inherent instability — rather than an external event.

5. Delay
Any loss caused by delay is excluded, even when the delay itself results from an otherwise insured peril.

6. Insolvency or Financial Default
Loss arising from the insolvency or financial default of vessel owners, operators, or charterers.

7. Unfitness of Vessel or Conveyance
Loss caused by unseaworthiness of the vessel or unfitness of the conveyance/container, where the insured was aware of this at the time of loading.

8. Deliberate Damage or Destruction
Loss from the malicious or deliberate destruction of the cargo or any part of it by any person, unless separately covered.

Marine insurance guide on what is not covered under marine insurance by cargo cover marine insurance agents
Marine insurance guide on what is not covered under marine insurance by cargo cover marine insurance agents

Exclusions That Can Be Reinstated via Add-Ons

Several exclusions are not permanent — they exist because they require a separate, specifically purchased add-on rather than being bundled into the base policy.

9. War, Civil War, and Hostile Acts
Excluded under all standard ICC clauses; reinstated only through Institute War Clauses.

10. Strikes, Riots, and Civil Commotion
Excluded by default; reinstated through Institute Strikes Clauses (SRCC).

11. Theft, Pilferage, and Non-Delivery (Under ICC B/C)
Automatically excluded under ICC B and C; only ICC A includes it by default, though TPND can be separately added to a B or C policy.

Exclusions Specific to ICC B and ICC C

Beyond the common exclusions above, ICC B and C carry additional gaps not present in ICC A:

  • Theft, pilferage, and non-delivery

  • Fresh/rain water damage (unless specifically named)

  • Hook damage, contamination, and breakage (unless named)

ICC C carries further exclusions beyond ICC B, including earthquake, lightning, washing overboard, and entry of sea/river water — making it the narrowest cover available.

Financial Losses Never Covered Under Marine Insurance

  • Loss of market or trading loss due to price fluctuation

  • Buyer non-payment or insolvency (covered separately under Trade Credit Insurance)

  • Consequential loss such as lost business or contract penalties

  • Currency exchange rate losses

Why Exporters Should Read Exclusions Before Shipping

Most claim disputes arise not from what a policy covers, but from exporters assuming a risk was covered when it fell under a standard exclusion. Reviewing exclusions against your specific cargo type, packing method, and trade route — before shipment, not after a loss — is the single most effective way to avoid a denied claim.