In brief - Engelhart shows that to cover
financial losses that do not result from physical loss or damage,
the open cover cargo policy must contain clear words to that
effect
The facts in the English High Court decision in Engelhart
v Lloyds Syndicate 1221 (2018)2 Lloyds Rep. 24 should
cause concern to anyone involved in the international carriage of
goods by sea, whether as traders or insurers. In this case, the
cargo claimant was unsuccessful in its claim against its insurers
under its open cover cargo policy.
Physical loss claims do not include circumstances where
insured is defrauded into taking out documents of title for
non-existent goods, Court finds
The claimant had purchased copper ingots from a supplier which
it had then on sold to a consignee in China. There were two
shipments involved. The first arrived at the ultimate destination
but the second had never been shipped, and there was no cargo to be
physically lost or damaged. The losses were therefore
