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SpecialtyStandard / Universal

Cargo / Warehouseman's Legal Liability

What this clause says

Warehouseman's Legal Liability and/or Motor Truck Cargo insurance covering Sponsor-owned materials in Manufacturer's care, custody, and control with a limit of not less than the replacement value of materials on premises at any one time, but in no event less than $1,000,000.

What this means in plain English

Coverage for damage to the sponsor's materials while you have them in your facility or in transit.

What it means for a CDMO program

CGL specifically excludes property in your care, custody, and control. For a CDMO holding sponsor API or finished product, this is essential. The limit should match the highest-value sponsor inventory you ever have on hand. If you have $4M of API on the floor, a $1M limit is a real exposure.

How this evaluates

The Decoder applies these rules in order; the first match wins.

  • cargo › limit is at least $1M → Compliant: Cargo/Warehouseman coverage in place.
  • cargo › limit is not set → Gap: No cargo/warehouseman's liability — likely needed if sponsor materials are on site.

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Related clauses

Questions about specialty

Cargo / Warehouseman's Legal Liability — common questions

When do I need cargo and warehouseman's liability?

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When sponsor MSAs require coverage for raw materials and finished goods stored at your facility, or when you assume responsibility for goods in transit. Most pharma sponsor MSAs require both.

Does my property policy cover this?

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Property covers your owned property. Cargo and warehouseman's cover goods belonging to others (the sponsor) that you hold or transport. They are different coverages.

How is the limit set?

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Sized to typical inventory on premises plus a buffer. For a CDMO holding $5M of sponsor inventory, $5M-$7M warehouseman's is standard.