Delay Clause

What Does Delay Clause Mean?

A delay clause is a condition commonly found in marine cargo insurance policies that absolves the insurer from responsibility for any loss or damage resulting from a delayed voyage. This includes losses related to market fluctuations. The clause appears in most commercial marine insurance policies that cover sea shipments.

Insuranceopedia Explains Delay Clause

The delay clause is a common feature in marine cargo insurance policies, though its specifics can vary. For instance, the clause may exclude certain perils, such as bad weather, as valid reasons for a delay.

“Loss of market” refers to the loss of a buyer for delayed goods. It is specifically named because the insurance industry does not consider failed business transactions to be an insurable loss. When comparing freight insurance quotes, reading the delay clause of each policy is worth the time, since the list of accepted reasons for delay varies by insurer.