An unexplained loss or shortage of goods is excluded when it occurs from a vehicle owned, leased or operated by the insured party. This most common occurrence would be theft of property from the vehicle, either by the insured or employees of insured. This would also exclude theft from unrelated parties as a result of the insured’s vehicle being stolen or not securely locked.
While cargo insurance can help you avoid financial losses at sea, there are common insurance exclusions that you should keep in mind. The following are the most common exclusions that an insurance company will not cover. While they may not be covered by insurers, the causes of these exclusions can be easily avoided with proper planning and practices by the shipper.
The loss of or damage to goods in transit, which can be foreseen, is called inherent vice. This arises from the condition and physical nature of the goods or products in question. With inherent vice, damages are not a result of supply chain processes. Rather, they are contributed to an internal cause. An example would include unstable chemical compounds that could react and lead to an explosion.
