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Business Interruption / Marine Cargo

Hypothetical training case

A critical shipment is delayed without damage

Does delay alone trigger standard cargo or property business-interruption cover?

Hypothetical training case — not a reported judgment or claim determination.
01

Incident

A critical shipment is rerouted around a conflict zone and arrives six weeks late, stopping production. The cargo is not physically damaged.

02

Coverage question

Does delay alone trigger standard cargo or property business-interruption cover?

03

Relevant clause

Physical-damage trigger, delay exclusion, contingent BI, suppliers, and any trade-disruption extension.

04

Insurer argument

There is no insured physical damage and standard cargo wording excludes loss caused by delay, so the financial loss is outside cover.

05

Insured argument

A specific non-damage, supplier, prevention-of-access, trade-disruption, or delay-in-start-up extension may respond if its conditions are satisfied.

06

Indicative analysis

Standard covers commonly have a trigger gap here. Recovery requires a specifically worded extension whose trigger, territory, dependency, waiting period, sublimit, and exclusions match the facts.

07

Practical lesson

Map critical suppliers and routes before renewal; do not assume an all-risks label covers delay, loss of market, demurrage, or production shortfall.

Claims boundary: Actual outcomes depend on the complete policy, schedule, endorsements, applicable law, evidence, causation, quantum, and claims process. Obtain professional advice for a real claim.