All risks
Cover written so that everything is insured unless an exclusion applies.
Definition
A cover structure, not a promise that everything is paid. Institute Cargo Clauses (A) is written the inclusive way round: it responds to "all risks of loss of or damage to the subject-matter insured" and then lists what is excluded. The practical consequence is where the burden sits — the insured shows a loss occurred during the insured transit, and the insurer must point at an exclusion to decline. Named-perils cover reverses that: the insured must fit the loss into a listed peril.
Why it decides money
The word "risk" is doing work. A risk is fortuitous — something that might or might not happen. A certainty, such as goods that were always going to deteriorate over a 40-day transit, is not a risk and is not covered however broad the wording.
Related terms
- Institute Cargo Clauses
- The standard market wordings for cargo cover — (A), (B) and (C).
- Named perils
- Cover that responds only to a listed cause of loss.
- Inherent vice
- Goods failing because of what they are, not because of anything that happened.
More in what is covered
InsuranceScanner is an insurance intermediary, not an insurer — see the Terms for our role. Nothing here is a personal recommendation that a particular cover, sum insured or deductible is suitable for you. Where anything on this page conflicts with the certificate, policy schedule or wording issued by an insurer, that document governs.