Geographical Scope

What is Geographical Scope?

The geographical scope of a cargo insurance policy refers to the specific locations and areas in which the policy provides coverage for the loss, damage, or theft of cargo. This is typically defined in the policy language and may include specific countries, regions, or continents.

For example, a cargo insurance policy with a global geographical scope would provide coverage for cargo transported anywhere in the world, while a policy with a regional scope might only cover cargo transported within a specific region or set of countries. Some cargo insurance policies may have a more limited geographical scope, such as coverage only within a particular country or within a specific trade lane. It is important for policyholders to understand the geographical scope of their cargo insurance policy in order to ensure that they have the necessary coverage for their specific transportation needs.

How does geographical scope affect a claim?

A loss outside the policy's geographical scope usually isn't covered, even if the cargo and the cause of loss are otherwise eligible. Check the origin, destination and any transit points, including transshipment ports, against the policy wording before you ship. If your route changes, ask your insurer or broker whether coverage still applies.

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