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🌐 '''All-risk policy''' is an [[Definition:Insurance | insurance]] contract that covers every cause of [[Definition:Loss | loss]] except those specifically excluded in the policy language, rather than listing only named perils that are covered. The term is most commonly encountered in [[Definition:Property insurance | property insurance]] and [[Definition:Inland marine insurance | inland marine insurance]], where it represents the broadest standard form of coverage available. Despite its name, an all-risk policy does not literally cover every conceivable risk — it simply reverses the default: losses are covered unless the [[Definition:Insurance carrier | insurer]] can point to a specific [[Definition:Policy exclusion | exclusion]] in the contract.

⚙️ The mechanics hinge on the burden of proof. Under a [[Definition:Named peril policy | named peril policy]], the [[Definition:Policyholder | insured]] must demonstrate that the loss was caused by one of the perils explicitly listed. Under an all-risk policy, the insured need only prove that a covered loss occurred; the [[Definition:Insurance carrier | carrier]] then bears the burden of showing that an exclusion applies. Common exclusions in all-risk property forms include wear and tear, inherent vice, nuclear hazard, war, and — increasingly contested — certain [[Definition:Flood insurance | flood]] and [[Definition:Earthquake insurance | earthquake]] events. [[Definition:Underwriter | Underwriters]] price all-risk coverage at higher [[Definition:Premium | premiums]] than comparable named peril forms because the carrier assumes a wider range of potential loss scenarios and faces greater uncertainty about emerging or unforeseen causes of loss.

💡 Choosing between all-risk and named peril coverage is one of the most consequential decisions a commercial [[Definition:Policyholder | policyholder]] makes. Businesses with complex operations — manufacturers with supply-chain dependencies, technology firms with high-value equipment — generally favor all-risk policies because they cannot anticipate every peril that might disrupt their operations. From the carrier's perspective, writing all-risk business demands precise exclusion drafting and vigilant [[Definition:Claims adjuster | claims handling]], since any ambiguity in an exclusion is typically construed against the insurer under the legal doctrine of [[Definition:Contra proferentem | contra proferentem]]. The interplay between all-risk insuring agreements and their exclusions generates a significant volume of coverage litigation, making clear, well-tested policy language a competitive differentiator for [[Definition:Insurance carrier | insurers]] operating in this space.

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Named peril policy]]
* [[Definition:Policy exclusion]]
* [[Definition:Property insurance]]
* [[Definition:Inland marine insurance]]
* [[Definition:Contra proferentem]]
* [[Definition:Special form coverage]]
{{Div col end}}

Definition:All-risk policy - Revision history

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