Risk Calculated
to the Decimal.
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Grain Terminal / Bulk Storage
Stored Grain
Replacement-value protection for grain held in flat storage, cylindrical steel bins, and reinforced concrete elevators. Valuation accounts for CBOT daily settlement prices with a 6-hour lag cap on price exposure. Moisture variance thresholds, spontaneous heating, and structural failure from grain pressure are enumerated perils.
Standard Exclusions
Technical Specifications
| Parameter | Value |
|---|---|
| Valuation Basis | CBOT Daily Settlement + 6H CapCME Group feed |
| Moisture Threshold | ≤14.5% for corn / ≤13.5% wheat |
| Max Single Location | USD 280,000,000 |
| Spontaneous Combustion | Included — §4.2(b) |
| Fumigation Liability | Included — §4.2(f) |
| Deductible (Standard) | USD 50,000 or 0.5% TIV |
| Policy Term | 12 months, rolling harvest basis |
Liquid Bulk
Coverage for petroleum products, vegetable oils, molasses, and chemical feedstocks held in fixed tank farms or in transit aboard tanker vessels. Valuation uses Platts daily assessments for energy commodities and USDA weekly FOB prices for agricultural liquids. Contamination, commingling, and off-spec claims are covered perils.
Standard Exclusions
Technical Specifications
| Parameter | Value |
|---|---|
| Valuation Basis | Platts / USDA FOB (daily/weekly) |
| Contamination | Included — §6.1(a)–(d) |
| Max Single Vessel | USD 120,000,000 hull + cargo |
| Classification Req. | Class 1A — LR / BV / DNV GL |
| Commingling Cover | Up to 2% grade variance |
| Deductible (Standard) | USD 100,000 or 0.75% TIV |
| War Risk | Optional endorsement §9 |
Dry Bulk
Engineered coverage for iron ore, coal, potash, and phosphate stockpiles at mine sites, port terminals, and inland yards. Replacement values indexed to LME/IODEX daily benchmarks. Spontaneous combustion thresholds for coal (≥55°C pile temp), moisture migration limits, and wind/rain erosion losses are specifically enumerated.
Standard Exclusions
Technical Specifications
| Parameter | Value |
|---|---|
| Valuation Basis | LME / IODEX / Argus daily |
| Combustion Threshold | Coal: ≥55°C pile temp trigger |
| Max Single Stockpile | USD 95,000,000 |
| Moisture Migration | Included — §5.3(c) |
| Wind Erosion | Included ≥ Beaufort 8 |
| Deductible (Standard) | USD 75,000 or 0.6% TIV |
| Environmental Cleanup | Optional — §11.2 |
In-Transit
Open-cover cargo policy for bulk commodities moving by rail hopper, road tanker, or multimodal container. Coverage attaches at point of loading and terminates at delivery acceptance. Force majeure clauses are jurisdiction-specific, with landlocked country annexes for 47 jurisdictions. Delay-in-transit cover available for perishable commodities.
Standard Exclusions
Technical Specifications
| Parameter | Value |
|---|---|
| Cover Basis | Institute Cargo Clauses (A) + Bulk Addendum |
| Attachment | Ex-warehouse loading complete |
| Force Majeure | 47 jurisdiction annexes |
| Delay Cover | Perishables: ≤96H delay trigger |
| Max Single Conveyance | USD 18,000,000 |
| Deductible (Standard) | USD 25,000 |
| Strikes / Riots | Included — SRCC endorsement |
Assessment Procedure
- RA-01Duration: 0–4H
Commodity Identification & Classification
Establish the commodity class, grade specification, and applicable exchange benchmark. Map to UNCTAD commodity code. Confirm storage modality (silo, tank, open stockpile, vessel, rail car).
Output:Commodity Classification Record - RA-02Duration: 24–72H
Site Survey & Physical Inspection
Remote survey via satellite imagery (Planet Labs 3m resolution) for stockpiles >50,000 MT. On-site inspection required for facilities with TIV >USD 50M. Inspection checklist references NFPA 61 (grain) or NFPA 122 (coal) as applicable.
Output:Site Survey Report SS-XX - RA-03Duration: 2–6H
Replacement Value Calculation
Quantity verified by weight certificates, draft surveys, or satellite volumetric. Price sourced from applicable benchmark (CBOT, Platts, LME, IODEX) at time of binding with 6H lag cap. Calculation documented to 4 decimal places.
Output:RV Calculation Sheet RV-XX - RA-04Duration: 4–12H
Peril Exposure Modeling
Quantitative model run against enumerated perils: fire, explosion, flood, contamination, structural failure, theft. Spontaneous combustion risk scored using pile temperature, moisture content, and days-in-storage. Output is a peril exposure matrix with probability-weighted loss estimates.
Output:Peril Exposure Matrix PEM-XX - RA-05Duration: 1–2H
Premium Calculation & Policy Issuance
Premium calculated using base rate table R-07 adjusted for peril exposure score, location risk factor, and claims history coefficient. Minimum premium applies for locations below USD 2M TIV. Policy document issued within 2 business hours of premium acceptance.
Output:Policy Document POL-XX
Risk Parameter Reference Table
| Parameter | Value / Threshold | Basis / Standard |
|---|---|---|
| Moisture Variance Tolerance | ±0.5% | USDA GIPSA method |
| Temperature Monitoring | Continuous / 4H alert cycle | NFPA 61 §11.4 |
| Price Lag Cap | 6 hours from benchmark | CME/Platts feed |
| Volumetric Tolerance | ±1.2% from survey | Draft survey protocol |
| Satellite Refresh Cycle | 72H max for >50K MT | Planet Labs API |
| Combustion Trigger | 55°C (coal) / 40°C (grain) | NFPA 122 / 61 |
| Force Majeure Jurisdictions | 47 landlocked annexes | UW-FM-2026 |
| Reinspection Interval | 90 days or event-triggered | Underwriter discretion |
Methodology Note / UW-METH-2026
All risk assessments are conducted in accordance with IAIS ICP 17 standards and Lloyd's Market Association guidelines for commodity risk. Underwriters hold Lloyd's of London binding authority ref. BA-UW-47291.
The Coverage Matrix.
Every Class. Every Peril.
A 47-page technical document mapping every commodity class to its risk profile, coverage structure, and valuation methodology. No marketing. No summaries. The actual specification.
Document
UW-CM-2026-R4
Access requires operational qualification. The form collects commodity class and throughput to ensure the document is relevant to your operation before we commit your inbox to a 47-page technical specification.
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