All-Risk Insurance Clause

All-Risk Insurance Clause

An All-Risk Insurance Clause is a provision in an insurance policy that covers a broad range of risks and perils unless specifically excluded. This type of clause is designed to provide comprehensive protection for insured property, assets, or liabilities, offering coverage for almost any cause of loss or damage that is not explicitly stated as excluded in the policy.

The All-Risk Insurance Clause contrasts with named perils insurance, which only covers specified risks. Common exclusions in an all-risk policy may include damages from war, wear and tear, or intentional acts. For instance, if a business has an all-risk insurance policy for its equipment, it would be covered for theft, fire, or accidental damage unless any of these events are specifically excluded in the policy.

In practice, this type of clause is particularly beneficial for businesses and individuals seeking extensive coverage, as it minimizes the need to define every potential risk. However, policyholders should carefully review their policy documents to understand the exclusions and limitations that may apply, ensuring they have adequate protection for their specific needs.