ICC (2009) — Major Changes and Impact on Marine Cargo Insurance Practice

Overview

ICC(2009) did not completely replace the basic coverage structure of ICC(A), ICC(B), and ICC(C). It retained the principal framework of ICC(1982) while revising wording that had become difficult to apply consistently to modern international logistics, container transport, assignment of insurance rights, and cargo claims.

The principal practical changes concern attachment and termination of insurance, insufficient or unsuitable packing and preparation, insolvency or financial default of vessel interests, unseaworthiness and unfitness of containers or conveyances, treatment of a good-faith assignee, change of voyage, and terrorism-related wording.

A casualty occurring after 2009 does not by itself mean that ICC(2009) applies. The applicable edition is determined by the wording incorporated into the insurance policy, insurance certificate, open cover, insurance endorsement, application, or other contractual document.

ICC(2009) is also a model wording used in the insurance market. An individual insurance contract may modify it through the insurer's general conditions, endorsements, deletions, additional clauses, or mandatory local law. This article compares the standard ICC(1982) and ICC(2009) wordings but does not determine final coverage under an individual policy.

Scope of This Article

Item	Matters Covered in This Article	Matters Covered in Other Articles
Status of the revision	The background to the revision from ICC(1982) to ICC(2009) and the nature of the clauses as model wordings	The article on Institute Cargo Clauses 2009 addresses the complete structure of the clauses
Identifying the applicable edition	How to identify the 1982 or 2009 edition from the policy, certificate, open cover, and endorsements	The article on reading a marine cargo insurance policy addresses policy particulars generally
Duration of insurance	First movement within the warehouse, completion of unloading, use for storage, and the 60-day limit	The article on the duration of marine cargo insurance addresses the Transit Clause in detail
Packing exclusion	The party performing the work, timing of the work, container stowage, and independent contractors	The article on the insufficient-packing exclusion addresses causation and packing responsibility
Insolvency and financial default	The Assured's knowledge and the exception for a good-faith assignee	The article on carrier insolvency and cargo insurance addresses termination of carriage
Unseaworthiness and unfitness	The separate treatment of vessels and craft, and containers and conveyances	The article on vessel unseaworthiness and cargo insurance addresses seaworthiness in detail
Change of voyage	Change of destination by the Assured, an unknown different destination, and notice requirements	The article on change of voyage, omitted ports, and forced discharge addresses individual casualties
War, strikes, and terrorism	The relationship between exclusions in the basic clauses and separate cover	The articles on Institute War Clauses and Institute Strikes Clauses address each cover
Assignee of the insurance contract	Treatment of a good-faith buyer receiving the insurance rights in a CIF or letter-of-credit transaction	The article on assignment of a CIF policy addresses claim procedures
Final claim determination	Factors required to understand the changes	Final coverage depends on the policy, endorsements, governing law, and casualty facts

Background and Purpose of the 2009 Revision

ICC(1982) was used for many years as a standard wording for international cargo insurance. During that period, container transport, multimodal carriage, operations within warehouses, packing and vanning by third parties, electronic insurance documentation, and international sale structures developed substantially.

Certain expressions in the 1982 wording, including when goods left a warehouse, when delivery to a final warehouse occurred, and when the Assured or its servants were privy to unseaworthiness, could produce different interpretations depending on the logistics process and the status of the parties.

The 2009 revision retained the basic division of insured risks while seeking to:

• Clarify attachment and termination according to actual cargo-handling and transport stages
• Distinguish the Assured, employees, and independent contractors
• Connect the insolvency or financial-default exclusion to the Assured's knowledge
• Separate vessel unseaworthiness from unfitness of containers and conveyances
• Provide limited protection for a buyer acquiring the cargo and insurance rights in good faith
• Clarify notice, additional terms, and continuation of cover after a change of voyage
• Expressly address ideological and religious motives as well as political motives
• Replace older market expressions with wording more readily understood in modern insurance and carriage practice

ICC(2009) is not legislation. An individual contract must therefore be reviewed to determine which wording was incorporated and whether it was amended by endorsements.

Situations in Which ICC(2009) May Apply

Situation	Document to Review	How to Identify the Edition	Practical Caution
Single-shipment insurance	Insurance policy or certificate	Check for wording such as Institute Cargo Clauses (A) 1/1/09	Do not infer the edition from the notation ICC(A) alone
Open cover	Open-cover agreement and endorsement	Check the edition incorporated into the master agreement	The individual declaration may omit the edition
Seller-arranged CIF insurance	Policy, assignment endorsement, and sales contract	Check the clause name and date on the seller's policy	The buyer's domestic policy and the seller's policy may use different editions
Letter-of-credit transaction	Letter of credit and presented insurance document	Compare the documentary requirement with the policy actually presented	The expression All Risks does not establish the applicable edition
Long-standing continuing contract	Original contract and renewal endorsements	Check whether a renewal changed the clauses to the 2009 edition	Renewal of the insurance period does not necessarily change the wording
Assignment of cargo insurance	Original policy, endorsement, and sales contract	The edition incorporated into the assigned contract continues to apply	The assignment date or casualty date does not replace the wording with ICC(2009)
Contract containing additional endorsements	Endorsements and policy schedule	Identify the extent to which the endorsement overrides the ICC wording	Standard ICC(2009) language may have been deleted or amended
War and strikes cover	War, Strikes, and Terrorism-related clauses	Confirm the edition of each separate clause	Use of ICC(2009) does not establish that every related clause is also the 2009 edition

Situations Requiring Separate Analysis

Situation Outside the Direct Comparison	Reason	Document or Rule to Review
Insurer-specific English cargo wording	It may amend or replace the standard ICC wording	The complete wording and endorsements attached to the policy
Domestic transit insurance written under local-language conditions	A domestic transit wording rather than ICC may apply	Domestic transit policy conditions and special clauses
Institute Commodity Clauses or other cargo-specific wording	Cargo-specific conditions may supplement or override the ICC wording	The commodity clauses and priority provision
War, strikes, or terrorism coverage	These risks are excluded under the basic ICC and covered under separate clauses	Institute War Clauses, Institute Strikes Clauses, and termination provisions
Policy subject to an amended governing-law clause	The standard English law and practice provision may have been changed	Governing-law and jurisdiction endorsements
Heavy or project cargo subject to specific underwriting conditions	Survey, packing, vessel, or storage warranties may have been added	Underwriting conditions, survey requirements, and warranties
Casualty involving competing causes	The wording comparison alone cannot establish proximate cause or application of exclusions	Casualty evidence, survey report, work records, and governing law

Principal Changes from ICC(1982) to ICC(2009)

Issue	ICC(1982)	ICC(2009)	Practical Significance	Main Evidence
Attachment	When the goods leave the warehouse or place of storage for commencement of transit	When the subject-matter insured is first moved within the warehouse for immediate loading into or onto the carrying vehicle for commencement of transit	The purpose of the first movement must be distinguished from ordinary warehouse activity	Removal instructions, work records, collection schedule, and surveillance footage
Termination	Delivery to the final warehouse or another specified terminating event	Completion of unloading at the final warehouse, completion of unloading at another storage or distribution location, election to use a conveyance or container for storage, or expiry of 60 days	Completion of unloading and use of a container for storage become critical	Delivery record, unloading record, devanning record, and storage instruction
Insufficient packing	Packing or container stowage before attachment or by the Assured or its servants	Packing or preparation before attachment, or by the Assured or its employees; independent contractors are not employees	The timing and the person performing the work must be reviewed separately	Packing contract, worker records, vanning records, and photographs
Insolvency or financial default	Broad exclusion for loss arising from insolvency or financial default of owners, managers, charterers, or operators	Exclusion applies where, at loading, the Assured knew or should in the ordinary course of business have known that the default could prevent the normal prosecution of the voyage	The Assured's knowledge and the time of loading become relevant	Booking information, credit information, warnings, and internal records
Insolvency and a good-faith assignee	No express exception for a good-faith assignee	The exclusion does not apply to an assignee that bought or agreed to buy the cargo in good faith under a binding contract	A CIF or letter-of-credit buyer may receive protection	Sales contract, policy, endorsement, and payment evidence
Unseaworthiness and unfitness	Vessel, craft, conveyance, container, and liftvan addressed in one structure where the Assured or its servants were privy	Vessel or craft unseaworthiness is separated from unfitness of a container or conveyance	The party loading and the party aware of the defect must be identified	Loading record, container inspection, vessel information, and work instructions
Unseaworthiness and an assignee	No express good-faith-assignee exception	A good-faith-assignee exception is stated for vessel or craft unseaworthiness	The exception should not automatically be extended to container or conveyance unfitness	Assignment, sales contract, and causation evidence
Change of voyage	Held covered subject to prompt notice, premium, and conditions to be arranged	Prompt notice and agreement of rates and terms are required; a pre-agreement loss may be covered only where cover would have been commercially available on reasonable terms	Notice does not guarantee automatic continuation on the original terms	Change instruction, notice time, insurer response, and route information
Unknown sailing to another destination	Less expressly addressed	Where the ship sails for another destination without the knowledge of the Assured or its employees, the insurance is deemed to have attached at commencement of the contemplated transit	A change directed by the Assured must be distinguished from an unknown change	Shipping instructions, shipping line notice, and vessel records
Terrorism-related wording	Terrorist acts or acts by a person acting from a political motive	Terrorist acts and acts by a person acting from a political, ideological, or religious motive	Separate Strikes cover and its termination provisions must be reviewed	Endorsements, casualty cause, public information, and duration of cover
Terminology	Underwriters, servants, shipowners, and contract of affreightment	Insurers, employees, carriers, and contract of carriage	The clauses use terminology more consistent with modern carriage and insurance practice	The complete 1982 and 2009 wordings

Change 1: Clarification of Attachment

ICC(1982) attached when the goods left the warehouse or place of storage for commencement of transit. This could create uncertainty over whether attachment occurred during internal forklift movement, movement to a dispatch area, or loading onto the collecting vehicle.

ICC(2009) attaches when the subject-matter insured is first moved within the warehouse or place of storage for the purpose of immediate loading into or onto the carrying vehicle or other conveyance for commencement of transit.

The fact that cargo moved within a warehouse is not sufficient by itself. The movement must form part of the immediate loading process commencing the contemplated transit.

Movement for stock rotation, inspection, repacking, or relocation within storage may not constitute attachment. Movement directly connected to loading onto the scheduled collecting vehicle may constitute attachment even before the cargo physically leaves the building.

Change 2: Clarification of Termination

ICC(1982) referred to delivery to the final warehouse or place of storage as one terminating event. ICC(2009) uses completion of unloading from the carrying vehicle or other conveyance at the final warehouse.

Arrival of the truck at the final warehouse is therefore distinct from completion of unloading. Cover may also terminate upon completion of unloading at another warehouse selected for storage outside the ordinary course of transit, allocation, or distribution.

Cover may further terminate when the Assured or its employees elect to use a carrying vehicle, conveyance, or container for storage outside the ordinary course of transit.

Waiting for customs clearance, exchange of a delivery order, or expiry of free time does not necessarily terminate cover by itself. However, use of a container for inventory storage, commencement of distribution at another warehouse, or expiry of 60 days after discharge from the overseas vessel may terminate the insurance.

Change 3: Insufficient or Unsuitable Packing

The packing exclusion in ICC(2009) applies where insufficient or unsuitable packing or preparation causes the loss and the cargo cannot withstand the ordinary incidents of the insured transit.

Two separate elements must be considered:

• Packing or preparation completed before attachment of the insurance
• Packing or preparation carried out by the Assured or its employees

Where packing occurred before attachment, the exclusion may be relevant even where a third party performed the work. Where an independent contractor performed packing after attachment, the contractor is not treated as an employee of the Assured.

This does not mean that work by an independent contractor is automatically covered. Fortuity, other exclusions, instructions given by the Assured, contractor liability, and individual endorsements must still be examined.

Packing includes stowage in a container. The parties should determine whether the shipper, a CFS operator, warehouse operator, or freight forwarder performed the vanning and whether the work occurred before or after attachment.

Change 4: Insolvency or Financial Default

ICC(1982) broadly excluded loss or expense arising from insolvency or financial default of the owners, managers, charterers, or operators of the vessel.

Under ICC(2009), the exclusion applies where, at the time of loading on board, the Assured was aware, or in the ordinary course of business should have been aware, that the insolvency or financial default could prevent the normal prosecution of the voyage.

Subsequent insolvency alone is not sufficient. The analysis requires evidence of the Assured's actual or constructive knowledge at loading and the potential effect on continuation of the voyage.

Where a shipping line had publicly disclosed imminent suspension, vessel arrest, or serious payment default and the Assured nevertheless proceeded with the booking, the exclusion may arise. A sudden failure that an ordinary shipper could not reasonably identify should not be treated mechanically in the same way as under the broader 1982 wording.

Change 5: Protection of a Good-faith Assignee

ICC(2009) states that the insolvency or financial-default exclusion does not apply where the insurance contract has been assigned to a claimant that bought or agreed to buy the cargo in good faith under a binding contract.

In a CIF or letter-of-credit transaction, the seller may arrange insurance and assign the policy to the buyer. The buyer may not have selected the carrier or received the financial information known to the seller.

The change provides limited protection for such a buyer. Mere possession of the policy is not sufficient. The claimant must establish a binding sales contract, good faith, purchase or an agreement to purchase, and effective transfer of the insurance rights.

Change 6: Unseaworthiness and Unfitness

ICC(1982) addressed unseaworthiness of the vessel and unfitness of a craft, conveyance, container, or liftvan in a single structure where the Assured or its servants were privy to the condition.

ICC(2009) separates:

• Unseaworthiness or unfitness of a vessel or craft
• Unfitness of a container or conveyance

For a vessel or craft, the question is whether the Assured was privy to the unseaworthiness or unfitness when the cargo was loaded.

For a container or conveyance, the exclusion may arise where loading occurred before attachment, or where the Assured or its employees performed the loading and were privy to the unfitness at that time.

Where corrosion, damaged flooring, defective door seals, or structural defects in a trailer are involved, the parties must identify who loaded the container or conveyance and who knew of the condition.

Limits of the Good-faith-assignee Protection

The good-faith-assignee exception in the ICC(2009) unseaworthiness provisions is expressly connected to unseaworthiness or unfitness of a vessel or craft.

The wording does not state the same exception for the separate provision concerning unfitness of a container or conveyance.

It is therefore inaccurate to state that a good-faith assignee under ICC(2009) is protected from every exclusion relating to a vessel, container, and all forms of conveyance.

Even where a CIF buyer is the claimant, the analysis must distinguish vessel unseaworthiness from container or conveyance unfitness and identify the precise clause governing the loss.

Change 7: Change of Voyage

Under ICC(1982), a destination changed after attachment was held covered, subject to prompt notice and premium and conditions to be arranged.

ICC(2009) requires prompt notice to the Insurers and agreement of rates and terms where the Assured changes the destination.

If a casualty occurs before agreement, cover may be provided only where the changed risk would have been available at a reasonable commercial market rate and on reasonable market terms.

Prompt notice does not guarantee automatic continuation on the original terms. A change to a sanctioned area, conflict zone, prohibited destination, or materially increased risk may not be insurable.

Where the contemplated transit has commenced but the ship sails for another destination without the knowledge of the Assured or its employees, the insurance is nevertheless deemed to have attached at commencement of the contemplated transit. A change directed by the Assured must be distinguished from an unknown change.

Change 8: Terrorism-related Wording

The ICC(1982) strikes exclusion referred to loss caused by a terrorist or a person acting from a political motive.

ICC(2009) refers to terrorist acts connected with an organisation seeking to overthrow or influence a government by force or violence and to acts by a person acting from a political, ideological, or religious motive.

These risks are excluded under the basic ICC(A), ICC(B), and ICC(C). Any required cover must be confirmed under separate Institute Strikes Clauses or other endorsements.

Even where terrorism cover is provided, the Termination of Transit Clause (Terrorism) may terminate cover according to the ordinary course of transit, unloading at the final warehouse, unloading at another storage or distribution location, use of a container for storage, or the applicable time limit after discharge.

Attachment of Strikes cover does not mean that terrorism cover continues without geographical or temporal limitation. The insured peril and the duration of the cover must be reviewed separately.

Change 9: Modernisation of Terminology

Typical ICC(1982) Expression	Typical ICC(2009) Expression	Meaning of the Revision	Practical Effect
Underwriters	Insurers	Uses a more general expression for the insurer	The insurance-contract party is easier to identify
servants	employees	Uses modern wording for the Assured's personnel	Distinction from independent contractors is clearer
shipowners	carriers	Uses a broader carriage-related expression	Better reflects modern and multimodal carriage
contract of affreightment	contract of carriage	Uses the general term for a carriage contract	The connection with B/L and other carriage contracts is clearer
goods or cargo	subject-matter insured	Uses a consistent insurance expression	Terminology is more consistent across clauses
held covered	Notice, agreement of terms, and cover may be provided	Explains the requirements for continuation more expressly	Reduces the risk of assuming automatic continuation after notice

Comparison with Related Clauses and Legal Structures

Clause or Structure	Principal Function	Relationship with ICC(2009)	Matters It Does Not Determine Alone	Typical Review Stage
ICC(A), ICC(B), and ICC(C) 2009	Define ordinary cargo risks and basic exclusions	The principal clauses examined in this article	Cover for war, strikes, and terrorism	Ordinary cargo casualty
Institute War Clauses (Cargo) 2009	Cover war, civil war, and specified capture or seizure risks	Provide separate cover for risks excluded under the basic ICC	Ordinary breakage, wet damage, or theft	Transit requiring war-risk cover
Institute Strikes Clauses (Cargo) 2009	Cover strikes, riots, and specified terrorism or motive-based acts	Provide separate cover for risks excluded under the basic ICC	War risks and ordinary transit risks	Transit requiring strikes or terrorism cover
Termination of Transit Clause (Terrorism) 2009	Define termination of terrorism cover	May override inconsistent duration provisions	Whether the event constitutes an insured act of terrorism	Storage, distribution, prolonged delay, or resumed inland transit
Individual endorsement	Add, delete, or amend standard cover	Overrides ICC wording to the extent of inconsistency	Priority across the complete policy without reviewing all documents	Special cargo, route, or underwriting condition
Sales contract and Incoterms	Allocate risk and costs between seller and buyer	Influence insurable interest and the required insurance design	The insurer's coverage obligation	CIF, CIP, FOB, and other international sales
B/L and contract of carriage	Define the liability of the Contracting Carrier and other transport parties	Affect recovery rights and insurance subrogation	Coverage under the cargo policy	Carrier claim and subrogation

Flow for Identifying the Applicable Edition and Change

1. Obtain the insurance policy, insurance certificate, or open-cover agreement.
2. Identify the type and date of the Institute Cargo Clauses.
3. Confirm the notation 1/1/82 or 1/1/09 rather than relying only on ICC(A), ICC(B), or ICC(C).
4. Review additions, deletions, and endorsements.
5. Prepare a chronology of the casualty, location, and logistics stage.
6. Identify whether the dispute concerns duration, packing, insolvency, unseaworthiness, container unfitness, change of voyage, or terrorism.
7. Compare the relevant provision in the 1982 and 2009 wordings.
8. Identify the Assured, employees, independent contractors, assignee, and carrier.
9. Apply the sales contract, B/L, work records, notices, and survey evidence to the clause requirements.
10. Determine whether separate War, Strikes, or Terrorism-related wording is required.
11. Notify the insurer or insurance agent and preserve all relevant rights.
12. Obtain specialist advice where the edition, governing law, or ownership of claim rights is disputed.

The analysis begins with the wording name and date incorporated into the contract, not the date of the casualty. The facts are then applied to the requirements of the relevant clause.

Cases That Frequently Cause Practical Problems

Case	Main Cause	Documents and Evidence	Decision Point	Initial Response
Dropping during removal inside a warehouse	Forklift operation, lifting, or incorrect centre of gravity	Collection instruction, surveillance footage, work record, and applicable ICC	Whether this was the first movement for commencement of transit	Stop work, preserve the condition, and notify the insurer
Unloading casualty after arrival at the final warehouse	Forklift impact or dropping	Delivery record, unloading record, and casualty time	Whether unloading had been completed	Stop unloading and notify the carrier and insurer
Wet damage while a container is used for inventory storage	Prolonged storage, defective doors, or rain-water entry	Storage instruction, devanning schedule, and container record	When use outside the ordinary course of transit was elected	Establish the storage decision and casualty time
Defective packing by a third-party contractor	Insufficient supports, waterproofing, or internal securing	Packing contract, work date, attachment time, and photographs	Whether packing occurred before attachment and whether the contractor was independent	Preserve the packing and reserve rights against the contractor
Interruption caused by shipping line insolvency	Financial default, vessel arrest, or suspension of operations	Loading date, credit information, warning notices, and internal records	Whether the Assured knew or should have known at loading	Notify the insurer and discuss alternative transport and storage
CIF buyer claiming under an assigned policy	Insolvency or unseaworthiness involving the seller's chosen vessel	Sales contract, policy, endorsement, and casualty evidence	Good-faith-assignee requirements and the precise exclusion	Organise the assignment documents and preserve evidence of the seller's knowledge
Cargo damage caused by defective container flooring	Container unfitness, overloading, or inadequate inspection	Container inspection, vanning record, and party performing the loading	Who loaded the container and who knew of the defect	Do not return the container before inspection and photographs
Casualty after change of destination	Buyer instruction, sanctions, port closure, or change of customer	Change instruction, notice to insurer, response, and casualty time	Prompt notice and commercial availability of cover	Notify the insurer immediately and agree revised terms
Terrorism casualty during prolonged storage	Interrupted transit, distribution storage, or use of a container for storage	Strikes wording, terrorism termination clause, and storage instruction	Whether terrorism cover had already terminated	Confirm the storage purpose, duration, and any resumed transit

Documents to Be Reviewed by Practitioners

Document	Item to Review	Purpose	Action if Unclear
Insurance policy or certificate	ICC type, date, From and To fields, and Assured	Identify the edition, insured transit, and right to claim	Obtain the complete wording from the insurer or insurance agent
Open-cover agreement	Basic clauses, declarations, and endorsements	Identify conditions omitted from an individual certificate	Obtain the agreement and renewal history
Insurance endorsement	Additions, deletions, and priority wording	Determine whether standard ICC wording was modified	Confirm priority with the insurer
Sales contract or letter of credit	Insurance conditions, assignment, and transfer of risk	Identify insurable interest and status of the assignee	Consult the bank, legal staff, or specialist adviser
B/L or transport document	Transport scope, carrier, destination, and changes	Identify a change of voyage, interruption, and recovery target	Request records from the freight forwarder or shipping line
Packing and vanning records	Party performing the work, date, and place	Apply the packing and container-unfitness provisions	Collect evidence from the contractor, warehouse, or shipper
Casualty notice and survey report	Cause, location, and discovery time	Apply the facts to the relevant clause	Arrange a survey before repair or disposal

Application Scenario 1: Cargo Dropped during Removal from an Export Warehouse for Yokohama

Assume that a Japanese shipper is moving precision equipment valued at JPY 24 million inside its warehouse to the loading point for a collecting vehicle before export through Yokohama.

The cargo is dropped during the movement. An internal summary refers only to ICC(A), but the formal open-cover agreement incorporates Institute Cargo Clauses (A) 1/1/09.

The warehouse argues that the insurance had not attached because the cargo had not left the building. The shipper argues that the movement formed part of the immediate removal and loading process for the scheduled transit.

Under ICC(2009), the issue is not whether the cargo physically crossed the warehouse boundary. The question is whether it had first been moved for immediate loading onto the carrying vehicle for commencement of the contemplated transit.

Collection records, removal instructions, vehicle-arrival data, and surveillance footage may establish whether the movement was part of the scheduled transit rather than ordinary stock handling.

Application Scenario 2: Vessel Financial Default Affecting CIF Cargo for Kobe

Assume that a Japanese buyer purchases chemicals valued at JPY 68 million under CIF Kobe and receives an assigned foreign policy incorporating ICC(A) 1/1/09.

After loading, financial default by the vessel operator results in arrest of the vessel at an intermediate port and substantial storage and forwarding costs.

The insurer alleges that the seller may have known of the operator's financial condition before loading. The Japanese buyer argues that it did not select the carrier, had no knowledge of the financial problem, and acquired the cargo and policy rights in good faith under a binding contract.

The first issue is whether the original Assured knew or should in the ordinary course of business have known at loading that the default could prevent normal prosecution of the voyage. The second issue is whether the claimant satisfies the good-faith-assignee requirements.

Possession of the policy alone is insufficient. The analysis requires the sales contract, endorsement, payment evidence, transfer of rights, and evidence of the buyer's knowledge.

Application Scenario 3: Destination Changed during Transit to Nagoya

Assume that machinery valued at JPY 120 million is being transported to Nagoya when the buyer instructs that the destination be changed to Busan because of a change in the intended customer.

The Assured instructs the shipping line but does not notify the insurer. The cargo subsequently suffers seawater damage on the changed route.

The Assured argues that, as under the former held-covered concept, payment of an additional premium should continue the cover. The insurer responds that ICC(2009) applies, no prompt notice was given, and no revised rates or terms were agreed.

Under ICC(2009), a destination changed by the Assured must be promptly notified and rates and terms agreed. A casualty before agreement may be covered only where the risk would have been commercially available at a reasonable market rate and on reasonable market terms.

The changed destination, route, sanctions position, casualty time, opportunity to notify, and commercial availability of insurance must be examined. Payment of an additional premium does not automatically establish cover.

Common Misunderstandings

Misunderstanding	Correct Analysis	Practical Caution
Every casualty after 2009 is subject to ICC(2009)	The edition is determined by the wording and date incorporated into the contract	Review the policy, open cover, and endorsements
ICC(2009) completely expanded the insured risks under ICC(A)	It retained the basic structure while revising wording and specified exclusions	Do not confuse clarification with an extension of every insured peril
Every casualty inside a warehouse occurs before attachment	Cover may attach when cargo is first moved for immediate loading to commence transit	Confirm the purpose of the movement
Insurance always terminates on arrival at the final warehouse	Completion of unloading is significant under ICC(2009)	Distinguish arrival from completion of unloading
Packing by a third party can never fall within the packing exclusion	Packing before attachment may be relevant regardless of the party performing it	Confirm both the party and the timing
Insolvency of vessel interests is always covered under ICC(2009)	The exclusion may apply where the Assured knew or should have known at loading	Review knowledge and the effect on the voyage
A good-faith assignee is protected from every exclusion	Express protection is limited to specified insolvency and vessel or craft unseaworthiness provisions	Do not extend it automatically to container unfitness
Prompt notice of a destination change guarantees continuation of cover	Rates, terms, and commercial availability of cover remain relevant	Contact the insurer before or immediately after the change
ICC(A) 2009 automatically covers terrorism	Terrorism-related risks are excluded under the basic ICC and require separate cover	Review the Strikes and terrorism termination clauses
Standard ICC(2009) wording cannot be amended	It is a model wording that may be changed by endorsement	Review the complete policy rather than the clause title alone

Decision Checklist

Review Stage	Party to Consult	Item to Confirm	Action if a Problem Is Identified
When concluding the insurance contract	Insurer and insurance agent	ICC type, date, endorsements, and governing law	State the applicable edition in the policy or endorsement
When renewing an open cover	Insurer and internal insurance staff	Whether the clauses changed from 1982 to 2009	Review the effect on conditions and premium
During a CIF or letter-of-credit transaction	Seller, bank, and insurer	Edition, endorsement, and status of the assignee	Obtain a corrected policy or endorsement before shipment
Before removal from a warehouse	Warehouse, shipper, and insurer	Purpose of the first movement and attachment	Confirm the removal sequence with the insurer in advance
During packing or vanning	Packing contractor, warehouse, and freight forwarder	Party, date, and relationship to attachment	Preserve records and photographs and define responsibility
When financial concerns arise regarding a shipping line	Shipping line, freight forwarder, and insurer	Information before loading and ability to continue the voyage	Consult the insurer before continuing the booking
When loading a container	Shipper, warehouse, and Actual Carrier	Container condition, party loading, and knowledge of any defect	Reject and replace an unsuitable container
When changing destination	Buyer, shipping line, and insurer	New destination, route, notice time, and revised terms	Give prompt notice and avoid movement before terms are agreed where possible
When arranging terrorism or strikes cover	Insurer and insurance agent	Insured perils, termination, and treatment of storage	Review the separate cover and termination clause together
Immediately after a casualty	Insurer, surveyor, and relevant contractors	Applicable edition, logistics stage, cause, and evidence	Notify and preserve evidence before repair or disposal
When interpretation is disputed	Insurer, maritime lawyer, and legal staff	Complete wording, governing law, sales contract, and carriage contract	Reserve rights and confirm all relevant deadlines

When to Consult a Maritime Lawyer

Routine wording review, casualty notification, and insurance claims should generally be handled with the insurer or insurance agent. Advice from a lawyer experienced in marine insurance and international trade should be considered where:

• The parties dispute whether the 1982 or 2009 wording was incorporated
• The priority between an endorsement and the standard ICC wording is unclear
• The claimant's status as a good-faith assignee is disputed
• The parties dispute whether the cause was vessel unseaworthiness or container unfitness
• The insurer alleges that the Assured should have known of financial default
• Cover after a change of destination and commercial availability of cover are disputed
• Foreign law, foreign jurisdiction, or a dispute with a foreign insurer is involved
• An insurance claim deadline, carrier notice period, or litigation time bar is approaching

Interpretation of the ICC wording and liability claims against a carrier, packing contractor, warehouse operator, or seller arise under different rights and may be subject to different deadlines. Negotiations with the insurer should not result in failure to notify third parties or preserve recovery rights.

Summary

ICC(2009) retained the basic coverage structure of ICC(1982) while revising the wording relating to duration, packing, insolvency of vessel interests, unseaworthiness and unfitness, change of voyage, good-faith assignees, and terrorism-related risks.

Attachment was clarified by reference to the first movement for immediate loading to commence transit, and termination by reference to completion of unloading at the final or selected warehouse, use of a conveyance or container for storage, and the applicable time limit.

The packing exclusion requires separate examination of the party performing the work and the timing. The insolvency exclusion requires consideration of the Assured's knowledge at loading. The unseaworthiness provisions distinguish vessels and craft from containers and conveyances, and the express protection for a good-faith assignee must not be extended beyond the clauses in which it appears.

A change of destination does not automatically remain covered merely because notice is eventually given. Rates, terms, and commercial availability of cover remain relevant. Terrorism-related risk requires examination of the basic ICC, Institute Strikes Clauses, and the Termination of Transit Clause (Terrorism) together.

The practical starting point is not the general label ICC2009 but the exact clause name, date, and endorsements incorporated into the insurance contract. The casualty time, location, logistics stage, party performing the work, knowledge of the Assured, and status of any assignee must then be applied to the requirements of the relevant clause.