You see the phrase “All Risk” on your cargo insurance, and figured that should cover everything for you, right?

Because, of course, in the real English language, the word “all” encompasses everything. 

Not so, unfortunately, for cargo insurance – and it’s in important distinction to make as you’re looking for coverage for your goods as they’re in transport.

cargo insurance, all risk, welke customs brokers, global trade, supply chain


Bear in mind that cargo insurance is intended to cover physical loss or damage only, not subsequent financial losses such as the loss of market due to delay, or redirection or abandonment of your cargo. Those are generally not covered.

In fact, here’s a quick list of common exclusions under “All Risk” terms (which will tell you “all” you need to know about the word “all” in cargo insurance):

  • Improper or inadequate packing
  • Abandonment of cargo
  • Rejection by Customs
  • Failure to pay or collect
  • Inherent vice (infestation, failure of product to perform, et. al.)
  • Loss of use and/or market (i.e. seasonal items)
  • Nuclear
  • Radioactive contamination, chemical, biological, bio-chemical and electromagnetic weapons
  • Cyber attack
  • Strikes, riots and civil commotions
  • Acts of War

For those last two items, additional coverage can be found, and should be explored depending on your logistics.

So, what’s the solution?

  1. Know your cargo insurance – While we recommend using cargo insurance, it’s also important for you to understand your policy fully. 
  2. Optimize your supply chain and know the players – The best way to minimize risk in your supply chain is to make it a regular practice of evaluating it start-to-finish, knowing who the various entities are who have your goods in their care at any given time, and watching for situations or circumstances that could cause challenges before they become roadblocks.
  3. Understand and define responsibility throughout your supply chain via Incoterms

As always, if you have questions about cargo insurance, and how to best protect your investment as it moves through the global supply chain, don’t hesitate to contact the Welke USA team at 716.995.2900.



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