Warehouse to Warehouse Coverage

Warehouse to warehouse coverage is a type of marine cargo insurance that extends coverage beyond just the sea voyage. It provides protection for goods from the point of origin warehouse to the final destination warehouse, including inland transit and temporary storage.

Here’s a breakdown of warehouse to warehouse coverage

• Extended Coverage: Traditional marine cargo insurance primarily covers goods while they are in transit over water.
• Warehouse to warehouse coverage expands this protection to include:
  • Inland Transit: Covers the goods during transportation from the origin warehouse to the port of loading and from the port of discharge to the final destination warehouse.
  • This can include transportation by truck, rail, or other means.
  • Temporary Storage: Covers the goods while they are temporarily stored at a warehouse or other location during the course of transit.

Benefits

Seamless Protection: Provides continuous coverage throughout the entire journey of the goods, minimizing gaps in protection.
Simplified Logistics: Simplifies insurance arrangements by providing a single policy that covers all stages of transportation and storage.
Reduced Risk: Offers broader protection against a wider range of risks, including those that may occur during inland transit or temporary storage.

Scope of Coverage

The specific coverage and terms of warehouse to warehouse policies can vary, but they typically cover losses due to:

• Maritime perils: Storms, sinking, collision, grounding, fire, explosions.
• Extraneous perils: Theft, pilferage, non-delivery, strikes, riots, and civil commotions.
• Other perils: May also cover specific risks depending on the policy terms, such as damage due to temperature changes or delays in transit.
• Exclusions: Policies may have exclusions for certain types of losses or events, such as:
  • Inherent vice: Loss or damage due to the inherent nature of the cargo, such as spoilage of perishable goods.
  • Improper packaging: Loss or damage caused by inadequate packaging.
  • Delay: Losses due to delays in transportation, unless specifically covered by the policy.
  • War risks: Damage caused by acts of war or terrorism.
  • Nuclear risks: Damage caused by nuclear incidents.

Example

A shipment of electronics is transported from a warehouse in China to a warehouse in the United States. Warehouse to warehouse coverage would protect the goods during all stages of the journey, including truck transport from the origin warehouse to the port in China, the sea voyage across the Pacific Ocean, and finally, truck transport from the U.S. port to the destination warehouse.

Global Perspective

Warehouse to warehouse coverage is a common feature in marine cargo insurance policies worldwide, providing comprehensive protection for goods throughout their international journey. It’s a valuable tool for businesses involved in global trade, ensuring that their cargo is protected from the point of origin to the final destination.