Cargo insurance is not simply "loading to discharge". The Transit Clause of the Institute Cargo Clauses (ICC) automatically extends cover from the consignor's warehouse to the consignee's warehouse (Warehouse to Warehouse). Here is exactly when cover attaches and ends, and how it varies by Incoterm.
Clause 1 of the ICC Transit Clause provides that cover attaches "when the goods leave the warehouse or place of storage at the place named" and ends "on delivery to the consignee's warehouse or final place of storage".
In other words, it is the whole warehouse-to-warehouse transit that is covered — not just the loading and discharge on board.
The clause says "on leaving the warehouse", but in practice cover effectively attaches from the point risk transfers under the Incoterm. The point where risk passes to the buyer is when their insurance bites.
Cover attaches the moment the buyer takes delivery at the seller's works. Origin inland carriage is covered too.
Cover attaches once the goods are delivered alongside the vessel at the named port. Earlier carriage is the seller's risk.
Cover attaches once loading on board is complete. The most common attachment point for Korean imports.
A seller-arranged policy usually attaches from the consignor's warehouse; the buyer takes assignment of rights after loading.
Under the Transit Clause of the new ICC, cover ends at the first of the following four events to occur.
When the insured goods are delivered to the consignee's warehouse or place of storage at the destination named in the policy.
Even before arrival at destination, if the goods are delivered to another warehouse for storage or allocation outside the ordinary course of transit.
On expiry of 60 days after completion of discharge from the ocean vessel at the final port. Korean import cargo applies a 30-day reduction (termination-of-transit special clause).
If the Assured deliberately changes the route or destination, cover ends at that point (extendable for an additional premium upon notice).
The international standard is up to 60 days after discharge, but Korean import cargo typically uses the "termination-of-transit special clause (30 days)". If delivery to the consignee's warehouse, or final delivery, does not occur within 30 days of discharge, cover ends automatically.
→ Long bonded-warehouse storage or customs delay creates a coverage gap. If clearance delay is expected, ask N2N to arrange an extension for an additional premium.
Departure
Origin → port
Load port → discharge port
Bonded warehouse at port
Port → consignee
Arrival (cover ends)
↑ Cover spans the whole warehouse-to-warehouse transit. Cover ends within 30 days (Korean imports) or 60 days (international standard) of discharge.
An FOB buyer is covered from loading; loss before that (inland carriage, handling) is the seller's responsibility. CIF is seller-arranged, but if the clause level is thin the buyer adds DIC cover.
Korean imports end 30 days after discharge. If delay beyond 30 days is expected, notify the insurer in advance and pay an additional premium to extend.
For long bonded storage, after the cargo policy ends you will need separate Warehouse Insurance.
Inland carriage to the consignee in Korea is included in the cargo policy, but can also be covered separately under dedicated Transit Insurance.
Storage, distribution or allocation outside the ordinary course of transit can bring cover to an early end. Prior notice is essential.
Applying for cover and issuing a certificate for every shipment risks a coverage gap from a missed application or a late certificate. An Open Policy removes that risk structurally.
