What is All-Risk Coverage?
All-Risk Coverage is a comprehensive form of cargo insurance that provides the broadest protection for goods in transit—whether by air, ocean, or ground. Despite the name, it doesn’t mean “all scenarios” are covered, but it does cover most types of physical loss or damage to freight, unless specifically excluded.
What Does All-Risk Coverage Include?
This insurance typically protects against:
- Damage from rough handling (e.g., forklifts, cranes)
- Water damage from rain or seawater
- Theft or pilferage
- Fire or explosion
- Accidental loss (e.g., dropped containers, collisions)
- Natural disasters, like hurricanes or earthquakes (if not excluded)
Common Exclusions
Even with all-risk insurance, the following are usually not covered:
- Improper packaging
- Inherent vice (damage due to the nature of the goods themselves)
- War, strikes, or riots (unless added as endorsements)
- Customs rejections or delays
- Loss of market or consequential damages
Why Choose All-Risk Coverage?
Shippers and importers often opt for all-risk coverage to ensure maximum financial protection during unpredictable global supply chain movements. It offers peace of mind that cargo is protected from most transit-related incidents.
Example in Action
A company shipping high-value electronics from Germany to the U.S. secures all-risk coverage. En route, the container suffers water damage due to heavy rain while at port. With this insurance, the shipper can file a claim and recover the cargo’s insured value, minus any deductible.
Learn more about your cargo insurance coverage options!
