How do Institute Cargo Clauses A, B, and C differ in coverage?

• A. Clause A provides all risks; B covers named perils; C covers a more limited set of perils and exclusions.
• B. Clause A covers only theft; B covers only fire; C covers water damage.
• C. All three provide identical coverage.
• D. Clause A is for air shipments; B is for land shipments; C is for sea shipments.

Answer: (A)

The key idea is that the Institute Cargo Clauses come in a set that scales coverage from broad to narrow. Clause A is the broadest, covering almost any physical loss or damage to the cargo during transit (all risks), subject to a standard list of exclusions. Clause B narrows this to only the perils specifically named in the contract (named perils). Clause C is even more limited, covering a smaller, more restricted set of perils and typically with more exclusions.

So, the best choice states that Clause A provides all risks, Clause B covers named perils, and Clause C covers a more limited set of perils and exclusions. The other options misstate how the forms work—for example, one suggests only theft or fire, or that all three are identical, or that they’re tied to different modes of transport—which isn’t how ICC A, B, and C are structured.