Last month a decision was handed down in the matter of Englehart CTP (US) LLC v Lloyd's Syndicate 1221 in relation to marine cargo insurance and the scope of all risks insurance.
In brief summary, the decision confirms that:
- The words "this insurance covers all risks of loss of or damage to the subject-matter insured" in the risks clause of the Institute Cargo Clauses (A) 1/1/2009 (or similar all risks insuring conditions) refers only to the risk of physical loss of, or physical damage to, the insured goods;
- In the absence of very clear words in the policy, all risks insurance generally does not cover non-existent goods; the risk of measurement error or "paper loss"; or the risk of financial loss flowing from the acceptance of fraudulent documents of title to non-existent goods.
In this summary Simon Culhane and William Melbourne review the decision and the legal considerations for cargo insurers and insureds.
Download the pdf below to read more.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.