Insurance documents: “warehouse-to-warehouse”


Despite many practitioners believing the contrary, inclusion of a "warehouse-to-warehouse" clause on an insurance document does not provide evidence that cover is effective from a date not later than the date of shipment, when such document is dated later than the date of shipment.


The inclusion of a warehouse-to-warehouse clause (known as the Transit Clause at Clause 8 of the Institute Cargo Clauses A, B and C etc.) does not provide retrospective coverage from the warehouse at the place of departure.


Therefore, if the goods are shipped on 1 September and the insurance document is dated 4 September, the inclusion of a warehouse-to-warehouse clause will not backdate coverage to an effective date of 1 September.


One of the principle functions of the warehouse-to-warehouse clause is to set the prospective time for the commencement of coverage. For example, if insurance is effected on 27 August for a shipment expected to take place on 1 September, the goods will not be covered under that insurance document if destroyed by a fire in the warehouse on 30 August. For cover to be retrospective, there is a requirement for an express provision to that effect.


In light of these comments, and other discussions, the Drafting Group for ISBP 745 did not believe it to be appropriate for an ICC publication to include a practice that is not truly representative of insurance industry practice and where to permit a warehouse-to-warehouse clause to represent an indication that cover was effective prior to the date of shipment, could result in certain insurance claims not being honoured for the reasons explained above.


In view of this position, the ICC withdrew Opinion R766 (TA709rev).




A more detailed analysis of insurance requirements, together with specific examples, can be found within the ISBP modules at

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