No matter how well you plan a shipment, things can – and often do – go wrong in transit. From container damage and theft to fire, water exposure, or port delays, cargo faces a surprising number of risks. Relying on carrier liability alone often leaves businesses exposed to major losses. That’s why All Risks cargo insurance is a smart, often overlooked investment.

What 'All Risks' Really Covers

Despite the name, All Risks insurance doesn’t cover absolutely everything – but it offers the broadest scope of protection commercially available. Typical coverage includes:
– Theft or pilferage
– Physical damage during handling or transshipment
– Natural disasters (fire, storms, flooding)
– Accidents during sea, air, or road transport
– General Average contribution

Note: All Risks policies still exclude losses from inherent vice, insufficient packaging, delay, or willful misconduct.

Why Carrier Liability Isn’t Enough

Most businesses assume that the carrier will cover losses in transit – but under conventions like CMR (road) or Hague-Visby (sea), carrier liability is limited by weight and subject to exclusions.

Example: A 2,000 kg shipment of electronics worth €80,000 suffers partial water damage during road transit. Under CMR, compensation is capped at roughly €10 per kg – resulting in a maximum claim of€20,000. That leaves €60,000 uncovered.

To make matters worse, delays in payout and documentation disputes are common. Without dedicated cargo insurance, the burden of loss usually falls on the shipper.

The Hidden Hero – Packaging Quality

All insurance, especially All Risks, relies heavily on the condition of the cargo at the moment of loading. Poor packaging is one of the most common reasons claims are reduced or rejected altogether.

Bad packaging can:
– Lead to claim rejection
– Increase risk of damage during handling, stacking, or transshipment
– Cause container shifting, crushing, or moisture penetration

Tips for optimal packaging:
– Use sturdy pallets, shrink-wrap, and corner protectors
– Ensure all labels are waterproof and clearly marked ("Fragile", "This Side Up", etc.)
– Secure internal contents to prevent movement
– Use desiccants or ventilated packaging for moisture-sensitive cargo

Insurance policies often state:
“Loss due to insufficient or improper packaging is not covered.”

When to Get It

All Risks coverage is strongly recommended for any:
– Fragile, high-value, or sensitive cargo
– Multimodal shipments or long-distance routes
– Shipments with transloading or port storage
– Non-replaceable or customer-owned goods

Our team at Moorhouse Logistics can help you assess your cargo risks and select an insurance solution tailored to your route and goods.

Conclusion

If you can’t afford to lose it, insure it properly. All Risks cargo insurance offers protection, peace of mind, and faster resolution when things go wrong. And with proper packaging, it becomes a powerful safeguard for your shipment and your business.

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