Category: Marine · Reviewed by Jake Leat, Associate Director · Last reviewed 2026-06-05
Marine cargo all risks is the broadest standard form of marine cargo cover, provided in the London market under the Institute Cargo Clauses (A) wording, responding to all physical loss of or damage to the insured goods from any external cause except the perils expressly excluded by the policy.
Category: Marine insurance Also known as: all risks cargo, ICC (A) cover, all-risk marine cargo First codified: Institute Cargo Clauses (Air) and (Sea) 1963; ICC (A) 1/1/82; current ICC (A) 1/1/2009 (CL.382) Related legislation: Marine Insurance Act 1906 [1]; Insurance Act 2015 [2]
The term ‘all risks’ in marine cargo insurance refers to cover that responds to loss or damage from any fortuitous external cause, in contrast to ‘named perils’ cover that responds only to listed causes. The label is a market shorthand for Institute Cargo Clauses (A) (CL.382, dated 1/1/2009), the broadest of the three standard marine cargo wordings published by the Joint Cargo Committee [3][4].
The all risks formulation appears in cl.1 of ICC (A): ‘This insurance covers all risks of loss of or damage to the subject-matter insured except as excluded by the provisions of Clauses 4, 5, 6 and 7 below’. The cover is therefore not literally unlimited - it is defined by reference to its exclusions, which carve out a defined list of categories of loss [3].
Despite the apparent breadth of the label, ‘all risks’ has long been narrowly construed by the English courts. The leading authority is British and Foreign Marine Insurance Co Ltd v Gaunt [1921] 2 AC 41, in which the House of Lords held that ‘all risks’ covers all losses by accidental causes but not losses that are inevitable, such as ordinary wear and tear, ordinary leakage and breakage, inherent vice or the inherent nature of the subject-matter. The losses must also be fortuitous - that is, accidental from the standpoint of the assured - and must occur during the policy period [1][3].
All risks cover is the default for general dry cargo, finished goods, manufactured products and high-value consignments. Lower-grade or named-perils cover under ICC (B) or ICC (C) is used for bulk commodities, low-value goods or trades where custom favours named perils [3][4].
All risks cargo cover is governed by the Marine Insurance Act 1906, supplemented by the express terms of the ICC (A) wording. Section 55 of the Act establishes the basic structure: subject to the Act and unless the policy otherwise provides, the insurer is liable for any loss proximately caused by a peril insured against but is not liable for any loss not proximately caused by such a peril. The all risks formulation in cl.1 of ICC (A) widens this to any loss except those excluded [1].
Section 55 also sets statutory exclusions that are typically reflected in the ICC (A) exclusions: wilful misconduct of the assured (s.55(2)(a)), ordinary wear and tear, ordinary leakage and breakage, inherent vice or nature of the subject-matter, and loss caused by rats or vermin (s.55(2)(c)). The Insurance Act 2015 modernised disclosure and warranty law for commercial contracts entered into after 12 August 2016 [1][2].
The ICC (A) exclusions are set out in cl.4 (general exclusions: wilful misconduct, ordinary leakage, insufficient packing, inherent vice, delay, insolvency of carrier, unfitness of vessel or container, atomic or nuclear weapons), cl.5 (unseaworthiness and unfitness), cl.6 (war exclusion) and cl.7 (strikes exclusion). War and strikes risks are placed separately under the Institute War Clauses Cargo (CL.385) and the Institute Strikes Clauses Cargo (CL.386) [3][4].
A specific exclusion of central importance is delay: cl.4.5 of ICC (A) excludes ‘loss damage or expense proximately caused by delay, even though the delay be caused by a risk insured against (except expenses payable under Clause 2 above)’. Loss of market and consequential losses from delay are also excluded. Delay cover is occasionally written by separate endorsement for time-sensitive cargo such as perishable foods or seasonal goods [3].
In practice, the all risks label means that the burden of proof in a cargo claim is favourable to the assured. Once the assured shows that the goods arrived in damaged condition and that the damage occurred during the period of cover, the loss is presumed to be from a fortuitous external cause unless the insurer can prove that it falls within an exclusion. This contrasts with named perils cover, where the assured must positively prove that the loss was caused by one of the listed perils [3][4].
The transit clause (cl.8) defines the period of cover. Cover begins when the subject-matter insured is first moved in the warehouse at the place named for commencement of transit and continues during the ordinary course of transit. Cover ends on completion of unloading at the final warehouse at destination, on delivery to any other warehouse used for storage outside the ordinary course of transit, on the expiry of 60 days after discharge from the overseas vessel, or on unloading at any other point - whichever occurs first [3].
Cargo claims under all risks cover are typically straightforward in principle. The assured notifies the insurer’s nearest correspondent, a surveyor inspects the cargo at destination, documents are assembled (commercial invoice, packing list, bill of lading or air waybill, claim against carrier) and the insurer pays the indemnified loss. Disputes arise mainly around the application of the exclusions, notably inherent vice (whether a cargo’s deterioration was caused by its own nature or by an external accident) and insufficient packing (whether the packing was reasonable for the contemplated transit).
A frequent grey area is loss from condensation, sweat damage or rust to steel cargo. These can arise from inherent moisture (excluded) or from external causes such as ingress of seawater or rain through a defective container roof (covered). Survey reports and laboratory analysis often determine the outcome.
All risks cargo cover is bought on a single-shipment basis (with a one-off marine certificate) or under an annual open cover with monthly or quarterly declarations. Open covers are the norm for regular shippers and allow shipments to be insured automatically up to declared limits.
Cover is commonly extended by additional clauses for war risks (Institute War Clauses Cargo CL.385), strikes risks (Institute Strikes Clauses Cargo CL.386), refusal of import (RFI clauses), increased value, brands and labels (for damage requiring removal of branded labels before salvage sale), and shut-out delay for project cargo. Specie cover for high-value transit (bullion, fine arts, cash, jewellery) is written on bespoke wordings that typically operate on an all risks basis with tailored exclusions.
The US market uses slightly different wordings, with American Institute Marine forms in common use alongside ICC, but the substance of all risks cover is similar. The London market remains the dominant centre for international cargo placement, particularly for project cargo, fine arts and specie.
A pharmaceutical company exports a consignment of vaccines worth £2.3m by air from London to Sao Paulo on CIP terms with the importing distributor. The exporter’s annual open cover provides ICC (A) all risks cover, with additional War and Strikes clauses, on an insured value of £2.53m (CIP plus 10% notional profit). On arrival, the receiver finds that one pallet of vaccines has been exposed to high temperatures during a delay in airside transfer at an intermediate hub, and the vaccines are rendered unusable. The insurer accepts the claim on the basis that the temperature excursion was an external accidental event during the transit (not inherent vice), pays £580,000 indemnity to the receiver, and pursues subrogated recovery against the air carrier subject to the Montreal Convention liability limits. The claim turned on the survey evidence distinguishing temperature damage caused by external mishandling from temperature-related inherent vice.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-05. Next review: 2026-12-05.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
Apex Insurance Brokers serves UK professional services firms and commercial businesses. Call 0117 325 0027, email hello@apexinsurancebrokers.co.uk, or request a quotation.
Get a quote