What does all risks cargo insurance cover?

What does "all risks" mean?

The name can be misleading: all risks is not a policy that pays for every loss. What it means is that cover is not limited to a list of events. The insurer lists one by one what it does not pay; physical loss or damage that is not listed and is caused by a sudden external event is paid. In the international market this structure is set up with the ICC (A) clause; in Türkiye this clause is added to the policy in addition to the General Conditions of Cargo Transit Insurance (Emtia Nakliyat Sigortası Genel Şartları).

What damage is covered?

• Accidental damage: Truck accident, overturning, sinking or grounding of the vessel, fire, explosion.
• Handling damage: Falling from a forklift, swinging and striking during a crane lift, crushing during stowage.
• Water damage: Sea water entry, as well as rain, fresh water and, under most policies, wetting caused by condensation.
• Theft and loss: Theft of an entire package, pilferage, non-delivery.
• Natural events: Earthquake, lightning, flood.
• Costs: General average contribution, salvage and reasonable costs incurred to minimise the loss.

What is not paid even under an all risks policy?

• Delay and loss of market.
• Insufficient packing, faulty stowage or a container unsuitable for the cargo.
• Deterioration arising from the inherent nature of the goods; for example, the natural ripening of fruit.
• Ordinary wastage, leakage and wear and tear.
• Wilful misconduct of the insured.
• War and strike risks; these are added by separate clauses.

For special conditions that extend this list, see the what cargo insurance does not cover entry, and for additional cover, the war and strikes clauses entry.

Where does the difference show compared with narrower cover?

As the table shows, the types of damage that occur most often in practice, namely handling, theft and wetting, are covered only by wide cover. All clause levels are set out in the ICC (A), (B), (C) comparison.

When does cover start and end?

ICC (A) operates "warehouse to warehouse". It starts the moment the goods are first moved in the loading warehouse to be prepared for transit and ends when they are unloaded at the final destination warehouse. For goods that do not enter the destination warehouse within 60 days of discharge at the final port, cover ends at the expiry of this period. Intermediate storage and transshipments can cause problems if they are not written in the policy; details are in the when cargo insurance starts and ends entry.

For which cargo is it preferred?

All risks is the first choice for any fragile and valuable cargo: machinery and spare parts, electronics, pharmaceuticals, ready-made garments, glass and ceramics, project equipment. For used machinery, insurers often exclude or limit cover for rust, oxidation and mechanical breakdown. In the cold chain, temperature deviation is added by a separate clause. Because the deductible in the policy means small losses stay with the insured, this amount should also be compared side by side when comparing quotes. Cover options can be found on the cargo transit insurance page.

Published: 01.11.2026 · Voltim Global