View source for Definition:All-risk coverage (also all-risks)

📋 '''All-risk coverage (also all-risks)''' is a form of [[Definition:Insurance policy | insurance policy]] that provides protection against any [[Definition:Peril | peril]] or cause of [[Definition:Loss | loss]] that is not specifically excluded in the policy language, rather than listing only those perils that are covered. In [[Definition:Property insurance | property]] and [[Definition:Marine insurance | marine]] insurance — the classes where all-risk forms are most prevalent — this structure offers the broadest available scope of protection to the insured. The term is widely used across global markets, though its precise contours depend on the [[Definition:Policy wording | policy wording]] and the [[Definition:Exclusion | exclusions]] schedule that accompanies it.

⚙️ Under an all-risk policy, the burden of proof is effectively shifted compared to a [[Definition:Named peril | named peril]] form. If a loss occurs, the policyholder needs to demonstrate that a fortuitous event caused the damage; the [[Definition:Insurance carrier | insurer]] then bears the burden of proving that an exclusion applies if it wishes to deny the [[Definition:Claim | claim]]. Common exclusions in all-risk property policies include [[Definition:Wear and tear | wear and tear]], inherent vice, intentional acts, [[Definition:War exclusion | war]], [[Definition:Nuclear exclusion | nuclear]] events, and increasingly, [[Definition:Cyber exclusion | cyber-related]] losses. In the [[Definition:London market | London market]], all-risk wordings have a long history in both [[Definition:Commercial property insurance | commercial property]] and [[Definition:Cargo insurance | cargo]] lines. In the United States, ISO commercial property forms and manuscript wordings alike may be structured on an all-risk basis, often labeled "special form" coverage. Asian markets, including Japan and Singapore, also use all-risk structures, particularly for large commercial and industrial accounts.

💡 The practical significance of all-risk coverage lies in the broader safety net it provides, but policyholders and [[Definition:Broker | brokers]] must scrutinize the exclusions carefully — because those exclusions define the true boundaries of protection. Disputes over whether a loss falls within an exclusion are among the most litigated issues in insurance law globally. The COVID-19 pandemic generated a wave of such disputes over [[Definition:Business interruption insurance | business interruption]] coverage under all-risk policies, with courts in the UK, Australia, and the United States reaching divergent conclusions on whether virus-related losses were excluded. For [[Definition:Underwriter | underwriters]], pricing all-risk coverage requires a more comprehensive view of potential loss scenarios than named peril forms, since any risk not explicitly excluded is implicitly covered.

'''Related concepts:'''
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* [[Definition:Named peril]]
* [[Definition:Exclusion]]
* [[Definition:Property insurance]]
* [[Definition:Policy wording]]
* [[Definition:Business interruption insurance]]
* [[Definition:Marine insurance]]
{{Div col end}}