All Risks

An All Risk insurance contract covers all perils except the ones spoken about in the list. Unlike a named perils contract, an all risks contract does not name risks that are covered; instead, it documents the risks that are not covered. So all risks are automatically covered unless mentioned in the list. The most common perils excluded from the all risks policy include war, earthquake, wear and tear, government seizure or destruction, pollution, infestation, nuclear hazard, etc. At the same time, it covers physical loss or damage to property. If an individual or a company wants to acquire insurance for any excluded event under an all-risk policy, they must pay an additional cost known as rider or floater.