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War Risk Insurance  

Last Updated: Nov 14, 2011 URL: Print Guide RSS UpdatesEmail Alerts

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War Risk Insurance

"War risk insurance: Cover on ships or cargo against war risks, derelict mines, torpedoes, bombs etc. Cover is under the Institute War Clauses (Cargo) and the Institute War and Strikes Clauses (Hulls-Times). Cargo is covered under a voyage policy only while on board the oversea vessel except for the restricted cover while in craft. War risks and strikes cover for hulls in on a time policy but cover terminates automatically if there is a war between the major powers, or the vessel is requisitioned, otherwise it can be terminated at seven day’s notice. Open covers and floating policies are also subject to 7 cancellation. The waterborne agreement brings marine insurance into line with non-marine insurance (i.e. excludes war risks on land-based property)."

C Bennett. Dictionary of Insurance, 2nd ed. (New York: Prentice Hall, 2004), 319.


Important note: The above definition defines the British understanding of this term. The American definition of War risk insurance deals primarily covering military personnel. .

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