Legal Definitions - warehouse-to-warehouse cover

Warehouse-to-warehouse cover refers to a type of insurance policy designed to protect goods against loss or damage during their entire transit journey. This comprehensive coverage begins when the goods leave the sender's initial warehouse or facility and continues without interruption until they are safely delivered to and unloaded at the recipient's final warehouse or designated facility. It specifically includes all intermediate stages, such as loading onto transport vehicles, transit by various modes (e.g., truck, ship, air), unloading, and any temporary storage or handling at ports or terminals.

Here are some examples illustrating warehouse-to-warehouse cover:

• Imagine a company in China manufacturing high-value electronic components that ships a large order to an assembly plant in Mexico. With warehouse-to-warehouse cover, the components are insured from the moment they are loaded onto a truck at the Chinese factory, through their journey to the port, the sea voyage, customs clearance, and finally, until they are unloaded at the Mexican assembly plant's receiving dock. If a crate is accidentally dropped and damaged while being transferred from the ship to a truck at the port of entry in Mexico, or during the final unloading at the plant, the insurance policy would cover the loss because it protects the goods throughout the entire process, from the origin warehouse to the destination warehouse.

• Consider a pharmaceutical company in Germany sending a shipment of temperature-sensitive vaccines to a distribution center in Brazil. The warehouse-to-warehouse cover would ensure protection for the vaccines from the moment they are carefully packed and loaded into a refrigerated container at the German facility. This coverage extends through the entire air freight journey, any necessary transfers at airports, and the final truck delivery, until the vaccines are safely unloaded and stored within the Brazilian distribution center. Should a malfunction occur during transit that damages the vaccines, or if they are mishandled during loading onto the final delivery truck, the policy would provide compensation, as it covers every step from the initial warehouse to the final one.

• A construction firm in Canada orders specialized, custom-fabricated steel beams from a supplier in the United States. The warehouse-to-warehouse cover protects these beams from the point they are loaded onto a flatbed truck at the U.S. fabrication plant. This includes the entire overland journey across the border, any inspections, and the final unloading at the Canadian construction site's storage yard. If a beam is scratched or bent while being lifted off the truck at the construction site, the insurance would apply because the coverage extends until the goods have reached their final destination and have been safely unloaded from the transport vehicle.