QBE HK x HKAA Thought Leader Series: EP2 What is All Risks Cargo Insurance?

Episode Two: What is All Risks Cargo Insurance?   

All Risks Cargo Insurance means a policy that provides comprehensive coverage for cargo against theft, loss and damage when it travels by air, sea, rail, and land, or storage during an ordinary course of transit. It is the broadest form of insurance available for goods in transit and helps individuals and businesses feel their products are being protected when on the move.    

With an increasing number of goods being transported by air, including dangerous and difficult to handle cargo, it is paramount to have adequate protection in the event something goes wrong – especially as the loss of goods can impact multiple parties in the supply chain.  

Claims, risks and exclusions  

A claim is made when something happens to the insured goods. For example, a claim could occur because of a container falling over, causing the goods inside to become damaged while on the plane,  train, truck or ship it is traveling on. Cargo could also be damaged from other shipments on the same plane, train, truck or ship, or damage incurred from poor handling while loading or unloading at places such as airports or ports.    

Policy exclusions may include hidden defects, natural product issues and faulty packaging. Proper packaging and security are therefore extremely important.    

It should be noted that some risks such as war and strikes are excluded but can be included by applying war and strikes clauses.   

If goods are moving overseas, it is important to use an insurance provider which has global breadth or one that deals with multiple countries. This will ensure that your cargo is adequately protected, no matter where it travels. 

This article is sponsored by QBE Hong Kong. If you have any inquiries about our risk management and insurance solutions, please contact us at expert@qbe.com. 

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