All-Risk Ocean Cargo Insurance policies cover goods and products that are not inside a standard shipping container.

You can see a sample policy here.

Below is a summary of the policy coverage.

Coverage Details

This policy provides insurance for cargo shipped over designated oceans, domestically and internationally, covering it:

  • From the warehouse/store at the origin
  • During normal transit, including temporary stops and transfers
  • Until final delivery at the named destination warehouse OR
  • Up to 15 days after arrival at the destination port (or 30 days if the warehouse is outside the port area)
  • It continues coverage even when goods are temporarily stored or waiting for transfer, as long as it’s part of the ordinary course of shipment.

Losses That Are Covered

This policy protects against many typical risks during transit, including:

Standard Transit Risks

  • Perils of the sea (e.g., storms, sinking)
  • Fire
  • Pirates, thieves
  • Jettison (throwing cargo overboard to save the ship)
  • Barratry (fraud by ship’s crew)
  • Stranding, sinking, burning

Land Risks (if cargo is on shore or land transport):

  • Collision or overturning of vehicles
  • Fire, lightning, floods, earthquakes
  • Collapse of docks or wharves
  • Sprinkler leakage
  • Hurricanes or cyclones

Special Risks (When Endorsed or Applicable):

  • War risks (if purchased separately)
  • Strikes, Riots & Civil Commotions (S.R. & C.C.) (if purchased)
  • General Average and Salvage charges
  • Machinery damage, explosion
  • “Inchmaree” clause: covers breakdowns and negligence by crew

For Automobiles: Insured against all risks of direct physical loss/damage (except for exclusions noted), including during transit by steamship. Deductible applies.

Losses That Are Not Covered

This policy specifically excludes coverage for the following

  • War & Political Risks (unless special coverage is added):
  • Capture, seizure, or confiscation by government or military
  • War, civil war, revolution, insurrection
  • Weapons of war (e.g., nuclear weapons, torpedoes)
  • Piracy (in certain contexts)
  • Terrorism or sabotage (under S.R. & C.C. exclusion unless endorsed)
  • Labor & Social Unrest: Strikes, riots, labor disputes
  • Acts of vandalism, sabotage, or political/terrorist acts (unless specifically included)
  • Delay or Market Loss:
    • Losses due to delay in shipment
    • Loss of market or loss of value because the product arrived late

Physical Damage Not Covered

  • Scratches, dents, chips (especially for autos)
  • Any damage not caused by an external physical force

Other Legal & Sanction-Related Exclusions

  • Any shipment or coverage that violates U.S. economic or trade sanctions (e.g., OFAC rules) is void.
  • If the destination or goods are prohibited by U.S. law, there is no coverage.

Key Notes & Claims Process

  • Prompt reporting is required for any loss or damage.
  • The insured must protect the goods and try to minimize loss (this is called the “Sue and Labor” clause).
  • Claims must be filed within 1 year of the loss.
  • Proper documents are required: invoices, bills of lading, policy copy, carrier claim, survey reports, etc.