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Institute Cargo Clauses B - Definition & Meaning | Logistics Glossary

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GlossaryEN1 min readUpdated: Jun 26, 2026

Institute Cargo Clauses B

Institute Cargo Clauses B (ICC B) occupy the middle tier of standard cargo insurance cover – broader than ICC C but narrower than the all-risks protection offered by ICC A.

Quick Answer

Institute Cargo Clauses B (ICC B) occupy the middle tier of standard cargo insurance cover – broader than ICC C but narrower than the all-risks protection offered by ICC A.

The policy covers a defined list of named perils: fire, explosion, stranding or capsizing of the vessel, collision, discharge at a port of distress, and earthquake, flood, or lightning.

Everyday transit damage such as breakage, scratching, or moisture spoilage falls outside the scope unless directly caused by one of those listed events.

Last updated: 26 June 2026Published: 22 November 2025

Source: https://www.lloyds.com/insights/publications/insurance/clauses/institute-cargo-clauses

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Institute Cargo Clauses B

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Definition & Explanation

Institute Cargo Clauses B (ICC B) occupy the middle tier of standard cargo insurance cover – broader than ICC C but narrower than the all-risks protection offered by ICC A. The policy covers a defined list of named perils: fire, explosion, stranding or capsizing of the vessel, collision, discharge at a port of distress, and earthquake, flood, or lightning. Everyday transit damage such as breakage, scratching, or moisture spoilage falls outside the scope unless directly caused by one of those listed events. Freight forwarders and shippers frequently select ICC B for bulk commodities, robust industrial goods, or cargo with limited damage exposure, as premiums are significantly lower than under ICC A. The clauses are internationally standardised and accepted by insurers worldwide.

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Recommended format: Source: Freight Academy – Institute Cargo Clauses B (https://www.freight-academy.com/en/glossary/institute-cargo-clauses-b), accessed 2026-09-12
APA style: Freight Academy Editorial Team. (2025). Institute Cargo Clauses B. Freight Academy. https://www.freight-academy.com/en/glossary/institute-cargo-clauses-b
BibTeX: @misc{institutecargoclauses2025, title = {Institute Cargo Clauses B}, author = {{Freight Academy Editorial Team}}, year = {2025}, url = {https://www.freight-academy.com/en/glossary/institute-cargo-clauses-b}, note = {Freight Academy, accessed 2026-09-12} }

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