When shipping your goods, we draw your attention to the importance of insurance “ad valorem”.

The latter, adapted to your needs and the nature of your goods, has many interests.

Tepmare is your agent, we suggest you negotiate the best terms and defend your interests in case of damage (procedures, reservations, compiling the file, expertise …)

Ad Valorem Cargo insurance can cover your goods from warehouse to warehouse (ex works to final delivery), and whatever means of transport: sea, air, road or river.
Your broker delivers an insurance certificate for each transport.



The Hague/Carriage of Goods by Sea Act and various conventions have been developed to protect the carrier against legal liability to shippers for circumstances out of their control.

This means shippers may have no legal recourse against carriers when their goods are lost or damaged or, if the carrier’s liability is ascertained, that the indemnity will be generally much below the actual value of their lost or damaged goods.

When the carrier’s liability is not ascertained (for example in case of a major event), you will not be indemnified.

However, cargo (ad valorem) insurance will indemnify you on the basis of the entire insured value.

Exemple :
If you have insured on Cost, Insurance, freight +10%, this will be the basis of the indemnity.


General Average could have heavy financial consequences for the cargo interests. This is a principle of maritime law according to which the owners of ship and cargo share in a loss incurred voluntary.

This declaration made by the Captain is based on the concept of sacrifice i.e. the voluntary destruction of part of the vessel or the cargo, or the deliberate expenditure of funds in time of grave peril, which is successful in avoiding total disaster.

Each party will contribute to the loss. The General Average Contribution is the proportionate shares of the vessel owner and each of the cargo owners in order to make up the expenditure or sacrifice incurred for the common good.


Trying to recover losses from carriers is difficult and time consuming. The best way to protect you financial interest is to insure all shipments, if possible with “All Risks” insurance coverage.

Cargo insurance relieves you of your financial exposure from physiacl loss or damage to your goods while in transit, since carriers have limited liability.

The role of the broker: the broker as a person represents you; he gives you advice on the cover which is the most appropriate to your needs at the best conditions. Moreover he protects your interest in case of claim (exceptions, procedures, setting up the claim file, survey …).



Free of particular average (F.P.A)
This is the narrowest form of coverage and it covers against any total loss.

When partial loss is specifically covered in the policy (extended coverage titled F.P.A. unless) it is recoverable from the
insurer only if the loss is the result of one of the following major events: sinking, capsizing, stranding or grounding of the vessel, collision or contact of the vessel with fixed movable or floating objects, entry of water, falling of the insured package during loading, transhipment or unloading, derailment, overturning or breakage of the land conveyance, flooding, tidal waves, volcanic eruption, earthquake, lightning, cyclone, fire or explosion.
General Average and salvage charges.

All Risks
It covers the above risks plus the damage and loss suffered by the cargo during the transport : storm, shifting of cargo, water damage, breakage, hook damage, robbery, dropping overboard …

Theft, pilferage and total losses are covered subject to the production of documents proving the non-delivery or the breaking and entering.

Cargo loaded on deck
Cargo loaded on deck is generally covered under “F.P.A.conditions except for jettison throw away and washing overboard” terms with an extra premium and subject to previous declaration to the underwriters unless loading on containerships in which case the cargo is covered under “All risks” terms.

Are not covered, except special agreements
The damage and loss resulting from inherent vice of the cargo, effect of atmospheric temperature, ordinary leakage or ordinary loss in weight or volume, unsuitability of packing, delay in forwarding or arrival of the insured cargo, losses of exchange rate or market, wilful misconduct or gross negligence of the assured or any other beneficiary of the insurance, war confiscation, seizure, contamination due to atomic or nuclear fission or fusion, piracy of a political nature or related to war, strikes, riots and civils disorder.

Insured value
The Insured Value is based on the value of the cargo including costs, charges and profit (maximum 20%).

Perishable goods under controlled temperature
Frozen products can be covered for variations of temperatures during transport, according to French clause 47 bis (frozen food clause).

It is possible to extend this cover to positive refrigerated temperature.

Loss or damage due to an “F.P.A. condition” unless other cases, is always settled irrespective of percentage.

Under other events, they are settled with or without deductible according to particular agreements between insured and underwriters.


War risks and strikes, riots and civil commotionare perils that are generally excluded on the Cargo insurance forms.

For an extra premium charge the insured often may be able to obtain War Risk insurance (Waterborne coverage) for the time that the cargo is actually loaded on board the ocean-going vessel itself until it is discharged at the port of destination.

The standard rate is 0.04%.

War on land may be also covered including Strikes, riots and civil commotion by endorsement which covers concurrently with the Warehouse to Warehouse coverage of the Open Cargo Policy.

Often the War Risks and S.R. & C.C. coverage are included in the same policy.

French assured such risks are reinsured with the Caisse Centrale de Réassurance.