All-Risk Coverage

What is All-Risk Coverage?

All-risk cargo insurance is a type of insurance that provides coverage for a wide range of risks that may damage or destroy goods in transit. It is a broad-based policy that covers losses and damages due to any cause, except for those specifically excluded in the policy.

All-risk cargo insurance is typically more comprehensive than other types of cargo insurance, as it provides coverage for a wider range of risks. This can include risks such as accidents, natural disasters, theft, and loss of or damage to the goods due to handling or storage.

All-risk cargo insurance does not actually cover "everything" that can damage or destroy cargo. It is important to carefully review the terms and conditions of an all-risk cargo insurance policy to understand what is and is not covered. Some exclusions may apply, such as war or acts of terrorism.

What should you check before buying all-risk coverage?

Read the exclusions first. Policies commonly exclude inherent vice (natural deterioration of the goods), improper packing, and delay. Also check the insured value, the deductible, and where coverage starts and ends, since some policies cover only the main voyage and others run from warehouse to warehouse.

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