all risk

(insurance) Extensive insurance coverage of cargo, including coverage due to external causes such as fire, collision, pilferage etc., but usually excluding “special” risks such as those resulting from acts of war, labor strikes, the perishing of goods, and from internal damage due to faulty packaging, decay or loss of market.
All risk insurance covers only physical loss or damage from external cause(s) and specifically affirms the exclusion of war risks and strikes and riots unless covered by endorsement. These losses are excluded, either by expressed exclusions, conditions or warranties written into the policy or by implied conditions or warranties that are read into every marine policy by legal interpretation.
An “all risks” policy may expressly exclude certain types of damage such as marring and scratching of unboxed automobiles or bending and twisting entirely or unless amounting to a specified percentage or amount.
Also, certain perils such as war and strikes, riots and civil commotions are commonly excluded, but these perils can be and usually are reinstated, at least in part, by special endorsement or by a separate policy.
The “all risk” clause is a logical extension of the broader forms of “with average” coverage. The all risk clause generally reads:
“To cover against all risks of physical loss or damage from any external cause irrespective of percentage, but excluding, nevertheless, the risk of war, strikes, riots, seizure, detention and other risks excluded by the F.C.&S. (Free of Capture and Seizure) Warranty and the S.R.&C.C. (Strikes, Riots and Civil Commotion) Warranty in this policy, excepting to the extent that such risks are specifically covered by endorsement.”
(air shipments) All risk insurance of air shipments usually excludes loss due to cold or changes in atmospheric pressure. See average; with average; free of particular average; inherent vice, war risk; strikes, riots and civil commotion.

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