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Risky Business

Court Affirms Contingent Cargo Policy Limiting Coverage to the Amount Available Under Primary Policy

By Shelly Benisch
Posted Oct 18th 2017 2:27PM

Check out the October 2017 SmithMooreLeatherwood Transportation Industry Newsletter on recent decision regarding important limitations to Broker Contingent Cargo policies.  The District Court for the Northern District of Illinois held that the language of a contingent cargo policy validly limited coverage to the “actual limits” of the primary policy. Thus, where a provision in primary cargo policy limited certain thefts to $5,000, the contingent policy also limited the coverage for those thefts to $5,000 even though the policy’s declarations page listed $200,000 in coverage.  


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