All  Risks Doesn’t Mean All Claims: A Deep Dive into Exclusions & Documentation for Cargo Insurance Claims

All Risks vs. Named Perils: What’s the Real Difference?

1. All Risks (Widely Used in International Logistics)

• Coverage logic: Covers all physical loss or damage from external causes unless the policy explicitly excludes it.
• Scope: Broadest available protection for ocean, air, and express freight.
• Key catch: Still subject to standard exclusions (see next section). “All Risks” does not mean unlimited coverage.

2. Named Perils (Limited Risk Coverage)

• Coverage logic: Only covers losses caused by specific, listed risks such as fire, collision, sinking, or stranding.
• Scope: Narrow; any damage not on the list is not covered.
• Common use: Lower‑value cargo or shippers willing to accept higher risk for lower premiums.

Quick Comparison Table

Why “Full Coverage” Often Fails: Common Exclusions You Must Know

1. Inherent Vice or Nature of the Goods

• Damage caused by the natural characteristics of the cargo itself.
• Examples: spoilage of food, melting of wax/candles, drying of liquids, natural wear, oxidation, or evaporation.
• Insurer position: These are predictable, not accidental external losses.

2. Insufficient or Improper Packaging

• Damage resulting from packaging that is not fit for international transport.
• Examples: weak cartons, insufficient padding, improper labeling, wrong palletization, or failure to meet carrier/Amazon FBA requirements.
• Key point: Packaging must withstand normal handling, stacking, and vibration during transit.

3. Delay in Transit

• Loss arising solely from delay, even if the delay is caused by an insured risk.
• Example: A shipment is delayed by a storm; perishables spoil. The delay itself is not covered

4. Losses from War, Strikes, Riots, or Political Risks

• Typically excluded unless you purchase separate war risk or strike cover.
• Relevant for shipments to unstable regions or during trade disruptions.

5. Willful Misconduct or Non‑Compliance

• Loss caused by the shipper’s intentional act, fraud, or violation of laws and regulations.
• Examples: undeclared restricted items, misdeclared cargo value, or non‑compliant labeling.

6. Normal Leakage, Loss in Weight, or Breakage

• Small, expected losses that are standard for certain commodities.
• Insurers do not compensate for industry‑accepted shrinkage.

7. Nuclear, Biological, Chemical, or Radiological Risks

• Almost universally excluded in standard cargo policies.

Complete Claims Documentation Checklist: Win Your Insurance Claim

1. Core Insurance Documents

• Original or copy of the cargo insurance policy/certificate
• Insurance declaration and premium receipt
• Endorsements (if coverage was adjusted)

2. Shipment & Contract Papers

• Commercial invoice (proving value)
• Packing list
• Purchase order or sales contract
• Export declaration (where applicable)
• Customs clearance documents

3. Transport Evidence

• Bill of Lading (B/L) for ocean freight
• Air Waybill (AWB) for air freight
• Courier receipt for express shipments
• Proof of delivery (POD) or carrier’s delivery note
• Real‑time tracking records from pickup to delivery

4. Proof of Loss or Damage

• Clear photos/videos of:
  • Outer packaging condition
  • Inner goods damage
  • Batch numbers, labels, and branding
• Inspection certificate from an independent surveyor
• Damage report signed by the carrier or warehouse
• Written notice of loss to the carrier within the time limit

5. Claim Calculation & Financial Proof

• Detailed claim statement (itemized loss, quantity, unit value, total amount)
• Proof of repair or replacement cost (quotations or invoices)
• Bank statements or payment proofs verifying cargo value

6. Supporting Statements

• Claimant’s letter explaining how, when, and where damage occurred
• Any correspondence with carriers, suppliers, or warehouses
• Proof of compliance with packaging standards (photos, specifications)

Pro Tips to Speed Up Claims

• Notify your insurer immediately upon discovering loss or damage.
• Preserve all packaging and goods until the survey is complete.
• Do not sign “clean receipt” documents if goods are damaged.
• Work with a logistics partner that provides end‑to‑end tracking and damage prevention support.

How Brand Empowerer Helps You Reduce Insurance Headaches

• Professional packaging compliance for FBA and cross‑border e‑commerce
• Pre‑shipment quality control to reduce avoidable damage
• End‑to‑end shipment visibility for fast claims evidence
• Experienced support to help you prepare complete documentation
• Preferred insurance arrangements with transparent terms