Shortage Risk

Shortage Risk is a supplementary risk in cargo transportation insurance that primarily covers losses caused by a shortage in quantity during transit. It is commonly applicable to bulk cargo (such as grain, ore, petroleum, etc.) or packaged goods where weight or quantity shortages occur due to leakage, evaporation, theft, or other reasons. This risk cannot usually be insured independently; it must be added on the basis of a main risk (such as Free from Particular Average, With Particular Average, or All Risks). Usage scenarios include bulk commodity trading and liquid cargo transportation. Points to note: Shortage Risk only covers quantity shortages, not quality losses; normal transit loss (such as natural loss or moisture evaporation) is generally not compensable unless otherwise stipulated in the policy; the insured must provide weight notes, inspection reports, and other evidence to prove that the shortage occurred within the insurance liability period. The difference from Theft, Pilferage and Non-Delivery Risk is that Shortage Risk focuses on quantity shortages, while Theft Risk focuses on the theft of entire packages. The difference from All Risks is that All Risks already includes Shortage Risk liability, so no separate addition is required.