All Risks is the most comprehensive coverage in marine cargo transportation insurance and is one of the clauses in the Ocean Marine Cargo Transportation Insurance Clauses of the People's Insurance Company of China. It does not cover all risks; rather, in addition to general extraneous risks (such as theft, non-delivery, fresh water and rain damage, shortage, contamination, taint, leakage, clash and breakage, odor, sweat and heating, hook damage, breakage of packing, rust, etc.), it also covers partial losses such as general average and particular average. Applicable scenarios: suitable for goods with high value, easy damage, easy theft, or complex transportation conditions, such as electronic products, precision instruments, high-end clothing, etc. Precautions: All Risks does not include special additional risks such as war risk and strike risk, which require separate additional coverage; it also does not cover the insured's intentional acts, inherent vice of the goods, natural loss, etc. Compared with Free from Particular Average and With Particular Average, All Risks has the greatest coverage liability, but the premium is also the highest. Foreign trade practitioners should make a reasonable choice based on the characteristics of the goods, transportation route, and customer requirements, and avoid blindly insuring against All Risks and increasing costs.
📝 Examples
1. According to the contract, the seller shall insure against All Risks for 110% of the invoice value, and state that War Risk and Strikes Risk are coverable. (Note: This clause specifies the insured amount, coverage, and additional risks, and is a common provision in CIF contracts.)
2. This batch of precision instruments is of relatively high value, so it is recommended to insure against All Risks to cover risks such as theft, breakage, and moisture damage that may occur during transportation. (Note: This recommends coverage based on the characteristics of the goods and reflects the applicability of All Risks to high-value, fragile cargo.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
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