Leakage Risk

Leakage Risk is an additional risk in marine cargo transportation insurance. It mainly covers losses to the insured goods caused by container damage or leakage during transportation, as well as reasonable expenses incurred for repairs or repacking to prevent leakage. This risk generally applies to liquid or semi-liquid goods, such as chemical products, oils, and alcoholic beverages packed in drums, cans, or bottles. It is often used in scenarios where specific risks still need to be covered after taking out All Risks, or where it is separately added on the basis of Free from Particular Average or With Particular Average. Precautions: Leakage Risk does not cover leakage caused by the inherent vice of the goods, improper packaging, or natural loss; if the goods cause damage to other goods due to leakage, Pollution Risk or Taint Risk must be insured separately. The difference from Free from Particular Average and With Particular Average is that the latter mainly cover total loss or partial loss caused by natural disasters and accidents, while Leakage Risk specifically targets the particular risk of leakage and falls under the category of additional risks, so it cannot be insured independently. Foreign trade practitioners should reasonably decide whether to add Leakage Risk coverage based on the characteristics of the goods, packaging methods, and transportation routes, so as to control risks.