War Risks

Summary of War Risks

The risks borne by a cargo owner or shipper that his goods will be lost or damaged owing to hostile actions at sea. Marine cargo policies exclude war risks from coverage, responding only for marine perils such as sinking, fire, collision, and various perils of the sea. War risks are covered in a separate policy, normally purchased in conjunction with the marine perils policy. The perils clause of a war risk policy reads substantially:

This coverage applies only against the risks of capture, seizure, destruction, or damage by men- of-war, piracy, takings at sea, arrests, restraints, detainments, and other warlike operations and acts of kings, princes, and people in prosecution of hostilities or in the application of sanctions under international agreements, whether before or after declaration of war and whether by a belligerent or otherwise, including factions engaged in civil war, revolution, rebellion, or insurrection, or civil strife arising therefrom, and including the risks of aerial bombardment, floating or stationary mines, stray or derelict torpedoes, and weapons of war employing nuclear fission and/or fusion or radioactive force; but excluding claims for delay, deterioration, and/or loss of market.

Premiums for war risk coverage are stated separately from premiums for marine perils coverage, even when both policies are issued by the same underwriter.

(Main Author: William J. Miller)