All-risk shipper’s insurance refers to a comprehensive policy that protects against direct cargo loss and damage due to external factors.
This kind of broad coverage is important to have because some incidents are out of everyone’s control. After all, there are a lot of risks involved with shipping cargo, no matter how careful the carrier is with the shipment.
For example, a heavy storm might knock a cargo container overboard into the ocean, or a fire could break out and burn through a shipment. In these cases, an all-risk shipper’s insurance policy would cover the cost of the loss.
The following are some examples of the kinds of risks typically covered in this kind of policy:
Fire damage
Sea water or fresh water damage
Theft
Piracy
Collision damage
Stranded shipments
Unlike other policies, all-risk shipper’s insurance does not require the shipper to prove the carrier negligent for the loss or damage. In fact, this policy pays regardless of whether the carrier’s negligence is determined as the cause of the incident.
That said, an all-risk shipper’s insurance doesn’t cover every risk possible. While each policy will differ, some of the common exclusions include damages or losses due to:
Improper packaging and loading
War, strikes, violence, and civil commotions
Government seizure or destruction
Rejection by Customs
Normal wear and tear
Intentional interference
Falvey’s All-Risk Shipper’s Insurance Policy
Falvey Insurance Group is pleased to provide the highest claims capacity and broadest coverage in the all-risk shipper’s interest insurance industry. Our coverage is designed for freight brokers, 3PLs, freight carriers, eCommerce vendors, and third-party software providers.
Under our all-risk shipper’s interest insurance policy, we offer door-to-door coverage and full-value reimbursement for lost or damaged shipments. And thanks to our underwriting expertise, our team studies and understands all the perils and risks associated with each shipment, allowing for customized policies. Contact us today to learn more.
