Contingent Cargo Coverage Form Comparison- Hanover versus Essex

Both Hanover and Essex are leading carriers in the contingent cargo space . Hanover is known as the industry leader with the premier policy forms but they will not write every account. That being said, Essex has more limited coverage but will write the tough stuff. We like both carriers and feel they both have a place in the market.

So what are the main differences ( there can obviously be modifications and improvements):

First and foremost, Hanover is a legal liability form subject to terms, conditions and exclusions- so in essense they pay unless it is excluded. Conversely, Essex is a specified perils form. It pays only if the loss meets the definition of specified perils. Since most folks are looking for excess coverage or difference in conditions coverage (DIC), a specifed perils form is not construed to be comprehensive. Hanover offers a comprehensive form.

Other issues:

The exclusions seem to mirrror each other: Civil Authority, Nuclear Hazard, War and Military action, Pollutants, Loss of use, Criminal or Dishonest Acts, Spoilage and Terminal to name most of them. Essex also excludes Wetness and Loading and Unloading

The property covered is a bit more restictive in Essex which excludes eggs, items left for more than 72 hours. Essex usually includes a special theft endorsement that has a sublimit of $5000 for target commodities

Defense costs are covered by Hanover; it appears that Essex is silent with respect to this issue

Essex also has a 100% co-insurance clause on their coverage form.

Obviously coverage is determined by the actual policy being issued, but as you can see, Hanover and Essex are apples and oranges relative to contingent cargo coverage.

For further information, please contact your underwriter.