Breakage of Packing is an additional risk in marine cargo transportation insurance, covering losses caused by the breakage of packing during transit. This risk primarily addresses the risk of goods being lost, leaking, or contaminated due to the rupture of packing containers (such as bags, drums, boxes, etc.) caused by handling, loading and unloading, or the jolting of the means of conveyance. It is commonly used in the transportation of bulk cargo, bagged cargo, or goods using fragile packaging, such as chemical fertilizers, grain, cement, etc. Points to note: Breakage of Packing is usually insured as an additional risk and cannot be insured separately, and it only covers cargo losses caused by the breakage of packing, not losses arising from the inherent defects of the goods themselves or improper packing. Unlike "Risk of Clash and Breakage," which covers the breakage of the goods themselves (such as glass or ceramics), Breakage of Packing covers cargo losses caused by the rupture of packing containers. In addition, if the breakage of packing is caused by the nature of the goods or improper packing, the insurance company may refuse compensation. Therefore, when insuring, the packing standards must be clearly defined, and it must be ensured that the packing meets transportation requirements.
📝 Examples
1. The 1,000 bags of chemical fertilizer we exported were insured against With Particular Average (W.P.A.) and Risk of Breakage of Packing. Upon arrival at the port, some bags were found broken and the fertilizer spilled. The insurance company compensated for the loss under the Risk of Breakage of Packing. (Note: This additional risk covers the loss of goods caused by broken packaging.)
2. Since this batch of cement is packed in paper bags, which are prone to damage during transportation, it is recommended that the buyer insure against Risk of Breakage of Packing to mitigate the risk. (Note: For goods with fragile packaging, it is advisable to insure against this additional risk.)
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