"All-Risks" is the most common form of cargo insurance. An "All-Risks" policy insures approved general merchandise against risks of physical loss or damage from external causes. Approved general merchandise includes new packaged goods listed in the commodity schedule. "All-risks" policies, however, do not cover all losses possible in the course of an international shipment.

All-Risks coverage protects cargo in transit from door-to-door. This means the cargo is covered from the time it leaves the shipper's door until it arrives at its final destination, as long as it is not taken out of normal course of transit by the insured. Consider the following transaction:

Cargo leaves Dallas for transit to Houston Upon arrival in Houston, the cargo is loaded on a vessel destined for Singapore Upon arrival in Singapore, the cargo is loaded on a feeder vessel for transit to Indonesia, its final destination.

If the shipper purchased all-risks, warehouse to warehouse insurance, the cargo would be covered from the time it left Dallas until it arrived at consignee's door in Indonesia.

This is the most comprehensive type of transit insurance available. However, it is important to remember that this broad coverage maybe negated by the terms of the sales contract.

For example, goods being shipped CIF Hamburg are insured by the seller until the cargo passes over the rail of the vessel in Hamburg. Any further transit within Germany should be insured by the buyer as the seller no longer has an insurable interest in the cargo.

1

Improper packing

2

Abandonment of cargo

3

Rejection of goods by Customs

4

Failure to pay or collect accounts

5

Inherent vice (infestation or loss due to the nature of the product itself)

6

Employee conversion or dishonesty

7

Losses due to delay or loss of market

8

Loss amount in excess of policy limits

9

Losses at port city more than 15 days after discharge of cargo

10

Losses inland more than 30 days after discharge of cargo

11

Losses in South America more than 60 days after discharge of cargo

12

Barge shipments

13

Goods subject to an on-deck bill of lading

14

Losses caused by temperature or pressure (air shipments)

15

Failure to notify air carrier of preliminary loss in timely fashion.

a) Obvious damage - 7 days

b) Hidden damage - 14 days

c) Non-delivery - 120 days

16

Used goods