Interruption of transit coverage is cargo insurance protection for losses or extra costs caused when a shipment is unexpectedly delayed, stopped, rerouted, or held during transit. It may apply when events such as port disruption, strikes, natural disasters, accidents, customs delays, or route closures prevent goods from moving as planned. This coverage can help cargo owners manage financial exposure from additional storage, forwarding, handling, deterioration, or delivery-related costs during an interrupted shipment. In particular, it covers goods held in storage during an unforeseen interruption of the normal transit journey, since unexpected storage due to vessel breakdowns, strikes, or routing changes may fall outside standard cargo policy coverage.
- Covers goods held in a warehouse or storage facility during an unplanned transit interruption
- Applies when the interruption is beyond the control of the insured
- Duration of coverage varies by policy; confirm the maximum storage period covered
- Notify the insurer promptly if transit is interrupted to preserve coverage
Related terms: All-Risk Coverage, FCL, LCL.
