Munich Re CAR/EAR Endorsement 013 (Offsite Storage)
Munich Re endorsement 013 extends a construction or erection policy to loss or damage to insured property temporarily held in a named off-site storage location away from the contract site, usually subject to its own sub-limit.
- Clause type
- Extension
- Origin/Market
- International programme
- Favours
- Insured
- Negotiability
- Negotiable
Standard wordings
- Munich Re CAR/EAR Endorsement 013 (Property in Off-Site Storage)
Purpose
Construction and erection projects frequently do not store delivered components directly at the contract site, but in external warehouses or logistics centres – for example because the site is not yet ready, or delivery occurs well ahead of the planned installation date. The underlying construction or erection policy is usually geographically limited to the contract site named in the schedule and does not cover such off-site storage locations without an extension. Munich Re endorsement 013 closes this gap by extending cover to expressly named storage locations away from the contract site.
Effect and limits
The extension is generally subject to its own sub-limit per storage location, lower than the main sum insured, and requires the storage location to be named in advance and adequately secured. Typically excluded are losses reflecting ordinary storage risks unrelated to the construction or erection activity itself, such as inadequate packaging, pest infestation, or gradual deterioration during extended storage periods.
Negotiation and practice
For projects involving early delivery of critical components – such as transformers, turbines or prefabricated elements – the clause should be agreed early, with an adequate sub-limit and clearly named, secured storage locations, to avoid a coverage gap between goods receipt and actual installation.