From Supply Chain Management Encyclopedia
Russian: Все риски
All risks coverage means property insurance covering loss arising from any fortuitous cause except those that are specifically excluded. This is in contrast to named perils coverage which applies only to loss arising out of causes that are listed as covered. The "All Risks" policy is an older (but still very commonly used, particularly in the United States type of policy. Because an All Risks policy can be written as an American-language contract or as a British-language contract, it will contain different wordings of the clauses and other relatively minor changes, which will make an American policy different from a British policy on a few points; therefore, careful reading of such policies should always be done to ensure that there is a proper match between the risks that the shipper (exporter or importer) is willing to assume and the ones that the policy excludes.
For a United States All Risks policy, the goods have to be shipped "under deck," which means that the goods must be stowed inside the ship, for the obvious reason that goods inside a ship are exposed to fewer perils than goods stowed "on deck." However, this presents a practical problem because the shipper usually is unaware of the way the goods are stowed in a ship, and because some containerships no longer have a deck and are instead equipped with stack bars. The problem is solved by requesting that the insurance company cover the goods based upon the Shipper's Letter of Instruction, which requests that the goods be shipped under deck, and not based upon the way the goods are actually stowed by the steamship line. Such coverage can be obtained as an endorsement to the main policy, usually at no additional charge. Once this endorsement has been granted, the All Risks policy is even more similar to a Coverage A policy (See Table 1. below), and therefore an All Risk policy is also quite appropriate for shipments of any nature between two developed countries.
Table 1. Marine Insurance Coverage Summary
|Perils Covered Against||Coverage A of the Institute Marine Cargo Clauses||Coverage B of the Institute Marine Cargo Clauses||Coverage C of the Institute Marine Cargo Clauses||All Risks Coverage||With Average (Typical Coverage)||Free of Particular Average (Typical Coverage)|
|Improper Stowage by Carrier||YES||YES|
|Damage While Loading/Unloading||YES||YES||YES||YES|
|Damage on land Before Loading||YES||YES||YES||YES||YES||YES|
See also: Marine insurance
- ↑ 1.0 1.1 David, P., Stewart, R. International Logistics: The Management of International Trade Operations - Thomson: Mason, Ohio. 2007 - http://www.atomicdogpublishing.com/home.asp
- ↑ 2.0 2.1 2.2 2.3 Under an FPA policy, any partial loss incurred would not be covered unless it is due to a ship sinking, burning, becoming stranded, or being involved in a collision; a total loss would be covered