Institute cargo clauses come embedded in a marine insurance policy which covers cargo in-transit. These clauses are there to specify what kind of items in the cargo is covered in case of any loss or damage to the shipment. It is interesting to note; institute cargo clause can cover anything from the cargo to the container that holds its value along with the transport mode which is used to ship the items.
Mainly, there are three basic sets of institute cargo clauses; A, B, C. Your coverage is directly related to your insurance premium. It means, the higher the marine insurance premium you pay; the more would be coverage you get. Here are the three institute cargo clauses as detailed below: