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  • QA 012
    Question:
    Can one insure against loss of quality/value of coffee whilst detained under US anti-terrorism legislation ?
    Background:
    There has been a case where a container of lemons was detained on suspicion of having been contaminated with a dangerous substance. When the goods were finally cleared the quality had reportedly deteriorated to the point where they had to be destroyed.
    Asked by:
    A grower cooperative in Papua New Guinea
     
    Answer:

    Usually, insurance companies do not cover loss resulting from actions by government authorities, unless the insured has made special, prior arrangements for such cover to be included in the policy. What such cover might cost we cannot estimate but presumably it will depend on the kind of goods to be insured, and where they come from. The US legislation is relatively new and as such there are no established patterns yet. But yes, coffee too can deteriorate whilst being detained: for example by hot/cold weather, or hot sun radiation during the day against cool temperatures at night.

    Posted 26 January 2005

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