What does all-risks clause insurance cover during the shipment of cargo?

The all-risks clause in insurance is designed to offer comprehensive coverage for goods in transit. This type of insurance is beneficial because it does not limit coverage to specific named perils or types of loss; rather, it encompasses virtually any type of loss or damage that might occur during the shipment of cargo, except for certain exclusions explicitly stated in the policy.

This broad scope of coverage means that nearly any incident, from theft and handling damage to natural disasters, is covered, as long as it does not fall under an exclusion like inherent vice or war risks. This distinguishes it from other types of insurance policies that may only cover limited scenarios. Since the nature of transport can involve a multitude of unpredictable risks, the all-risks coverage provides shippers peace of mind, knowing that they are largely protected against unforeseen events affecting their cargo throughout the entire shipping process.