Loading
An addition to the rate for an identified extra exposure.
Definition
An increase applied to the base rate for a specific feature of the risk: war and strikes cover, a route through a listed area, temperature-controlled cargo, an unusually long storage period, a commodity with a poor recent loss record, or packing below the standard the underwriter expects.
Why it decides money
A loading is a price signal about something real. If a route or a packing method attracts one, that is the underwriter telling you where the losses come from.
Related terms
- Rate per 100
- How cargo premium is quoted: a rate applied to each 100 of insured value.
- Institute War Clauses (Cargo)
- The separate wording that buys back the war exclusion.
More in value and premium
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