All-risk coverage is a type of cargo insurance that protects goods against most physical loss or damage during transit unless a specific exclusion applies. Unlike named-perils coverage, which only covers listed risks, all-risk cargo insurance starts from the assumption that accidental external loss is covered unless the policy excludes it. Common exclusions may include poor packing, inherent vice, delay, ordinary leakage, intentional acts, or certain war and strike risks. It is often used for higher-value or sensitive shipments.
Common Exclusions
- Inherent vice: deterioration from the goods’ own nature
- Delay
- War and strikes, which require a separate endorsement
- Inadequate packing by the shipper
All-risk coverage is recommended for high-value or fragile shipments and provides more protection than Named Perils policies. All-risk coverage protects the cargo itself, while cargo owner’s liability coverage responds when the goods cause damage, injury, or pollution to other parties.
Related terms: General Average, War Risk Surcharge.
