Delay exclusion
Loss caused by delay is excluded, even where an insured peril caused the delay.
Definition
Clause 4.5 of the Institute Cargo Clauses excludes loss, damage or expense proximately caused by delay, expressly including delay caused by a risk otherwise insured. A stranding that delays a consignment by a month is a covered peril; the consequences of arriving a month late are not covered, and neither is a loss of market.
Why it decides money
It surprises people every time there is a major disruption. The exclusion is why separate delay, rejection and loss-of-market products exist at all.
Related terms
- Institute Strikes Clauses (Cargo)
- Buys back strikes, riots, civil commotion, terrorism and political motive.
- Inherent vice
- Goods failing because of what they are, not because of anything that happened.
More in what is covered
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