Delay Clause
Updated: 24 October 2024
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.
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.
