Shaver, a barge company, contracted with Weyerhauser, the shipper, to transport caustic soda to a buyer. Shaver arranged for marine cargo insurance with Travelers. Several different types of coverage were discussed. Shaver decided on "free from particular average" and "standard perils" provisions, supplemented with "specially to cover" clauses. Shaver loaded the first shipment of caustic soda on one of its barges and transported it to the buyer. The buyer refused delivery because it had been contaminated with tallow. The contamination occurred as Shaver was loading the caustic soda aboard the barge. The barge had previously carried a load of tallow, and Shaver had not thoroughly cleaned the barge input lines. The barge was returned to Shaver's dock. Shaver and Weyerhauser filed a claim with Travelers. Travelers argued that the contamination did not represent a recoverable loss under the policy. Shaver and Weyerhauser brought this action against Travelers.
1. Tell whether coverage was awarded or denied under each of the following insurance provisions, and why or why not: the perils clause, the shore clause, the "Inchmaree" clause, and the negligence clause.
2. How could the shipper have avoided this problem?