Quick answer
ICC (A) covers all risks of loss or damage except the listed exclusions. ICC (B) and (C) cover only named perils: (C) the major casualties such as fire, stranding, overturning and collision; (B) adds earthquake and lightning, washing overboard, entry of sea or river water and a package lost while loading. Theft, rain damage, breakage, malicious damage and piracy are covered only by (A). War and strikes need separate clauses under all three. Under Incoterms 2020 the seller must insure at least ICC (C) for CIF and ICC (A) for CIP, for at least 110% of the contract value.
Last updated: 29 October 2026
Risk by risk
| Risk | ICC (A) | ICC (B) | ICC (C) |
|---|---|---|---|
| Fire or explosion | |||
| Vessel stranded, grounded, sunk or capsized | |||
| Overturning or derailment of land conveyance | |||
| Collision or contact with any external object other than water | |||
| Discharge of cargo at a port of distress | |||
| General average sacrifice | |||
| Jettison | |||
| General average and salvage charges (contribution) | |||
| Earthquake, volcanic eruption, lightning | |||
| Washing overboard | |||
| Entry of sea, lake or river water | |||
| Total loss of a package dropped in loading / unloading | |||
| Theft, pilferage, non-delivery | |||
| Rain or fresh water damage | |||
| Breakage, crushing, impact | |||
| Malicious damage | |||
| Piracy |
Not covered by any clause
- Wilful misconduct
- Ordinary leakage, loss in weight, wear
- Insufficient packing
- Inherent vice
- Delay
- Shipowner insolvency
- Nuclear weapons
- War (separate clause)
- Strikes, terrorism (separate clause)
Unseaworthiness is also excluded where the assured is privy to it (clause 5).
Incoterms 2020 minimums
- CIF (sea): the seller insures at least ICC (C).
- CIP (any mode): the seller insures at least ICC (A).
- Sum insured: at least the contract value plus 10% (110%).
Frequently asked questions
What is the difference between ICC (A), (B) and (C)?
(A) is all risks except exclusions; (B) and (C) are named perils. (C) covers major casualties only, (B) adds earthquake, washing overboard, water entry and dropped packages. Theft, breakage and rain damage are covered only by (A).
Does ICC (A) cover war and strikes?
No. War and strikes are excluded from all three clauses and are added with the separate Institute War and Strikes Clauses.
Which clause does CIF require?
Under Incoterms 2020, at least ICC (C) for at least 110% of the contract value.
Which clause does CIP require?
Under Incoterms 2020, at least ICC (A) for at least 110% of the contract value.
Is piracy covered?
Only under ICC (A); clauses (B) and (C) do not name it.