ICC (A), (B) and (C): which cargo cover do you need?

Almost every marine cargo policy in the world is built on the Institute Cargo Clauses. The letter after “ICC” decides what you can claim for. Here is the difference in plain words.

Updated: 2026-10-16

The short answer

ICC (A) covers all risks of physical loss or damage, except the exclusions listed in the policy. ICC (B) and ICC (C) only cover events that are named in the clauses. (C) is the narrowest. For new, packed goods, (A) is the usual choice.

Simplified summary. Your policy wording, endorsements and exclusions decide what is actually covered.

What “all risks” does not mean

ICC (A) is broad, but it is not unlimited. All three sets of clauses share standard exclusions, including:

• Insufficient or unsuitable packing
• Ordinary leakage, loss in weight or volume, and ordinary wear and tear
• Inherent vice: damage caused by the nature of the goods themselves
• Delay, even when the delay is caused by an insured event
• Wilful misconduct of the insured
• War and strikes, unless the matching war and strikes clauses are added

War and strikes cover is usually added to the policy separately, and is worth checking whenever your route passes through a high-risk region.

When to choose which

• ICC (A): new manufactured goods, electronics, consumer goods, anything that can be stolen, broken or wetted.
• ICC (B): robust goods where theft and handling damage are unlikely, when a lower premium matters more than breadth.
• ICC (C): bulk commodities, used goods, or cargo carried on deck, where insurers often offer nothing broader.

A trap in CIF contracts

If you buy on CIF terms, the seller only has to insure on ICC (C), the minimum. Under CIP, the seller must insure on ICC (A). So an importer buying CIF who assumes “insurance is included” may hold far less cover than they think. Read our guide to Incoterms and insurance.

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