Warehouse to Warehouse Clause:
A "warehouse to warehouse" clause is commonly used in shipping and cargo insurance contracts. It defines the extent of coverage provided by an insurance policy, specifying that the insurance protection applies from the moment the goods leave the seller's warehouse (origin) until they arrive at the buyer's warehouse (destination). This clause ensures comprehensive coverage throughout the entire transit process.
How it Works:
Inclusion in Insurance Policy:
The warehouse to warehouse clause is included as a provision in the insurance policy, specifying the scope of coverage for the insured goods during transit.
Coverage from Origin to Destination:
The clause explicitly states that insurance coverage begins when the goods are in the seller's warehouse (origin) and continues during the entire transportation process until the goods reach the buyer's warehouse (destination).
Transit Modes:
The coverage is not limited to a specific mode of transportation but extends to various stages, including transportation by land, sea, or air.
Intermediate Storage:
The warehouse to warehouse coverage may also apply during any intermediate storage or transshipment points, ensuring continuous protection.
Types of Risks Covered:
The insurance policy typically specifies the types of risks or perils covered during transit, such as damage, theft, or loss.
Claims Process:
In the event of a covered loss or damage, the insured party can file a claim with the insurance provider. The insurer assesses the claim based on the terms outlined in the warehouse to warehouse clause.
Sample Warehouse to Warehouse Clause:
"Warehouse to Warehouse Clause: This insurance coverage applies from the moment the goods are first moved for the purpose of the transit until they are delivered to the final destination and placed in the buyer's warehouse. The coverage includes all stages of transportation, intermediate storage, and transshipment points. Covered risks include [list of covered risks]."
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