Rust Risk

Rust Risk is an additional risk in marine cargo transportation insurance that covers losses caused by rusting of goods during transportation. It usually cannot be insured separately and must be added on the basis of insuring a main risk (such as Free from Particular Average, With Particular Average, or All Risks). It is applicable to rust-prone goods such as metal products, mechanical equipment, and hardware tools. Usage scenarios: When goods are exposed to humid air, seawater, or rain, oxidative rusting may occur, and the buyer or seller adds this coverage to transfer such risks. Precautions: Rust Risk only covers rust damage caused by external causes and does not cover inherent defects or natural oxidation of the goods themselves; if the goods already have rust before insurance, the insurer will not compensate. Difference from All Risks: All Risks already includes Rust Risk liability, so no separate additional coverage is needed; while Free from Particular Average and With Particular Average require additional insurance for Rust Risk. In addition, Rust Risk, like additional risks such as Theft, Pilferage and Non-Delivery, must be attached to a main risk. When insuring, the characteristics of the goods, packaging, and transportation route should be clearly specified to assess the risk of rust damage.