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What this guide covers: What an "All Risk" marine cargo policy actually covers, the standard exclusions most importers don't read until a claim is rejected, and the specific terms worth checking on your policy before your next China-Africa shipment sails.

Most African importers who arrange cargo insurance do so with one vague but reassuring thought: the cargo is insured. If something goes wrong, someone will pay. The first time a claim gets rejected — or paid at a fraction of the expected amount — they find out what their policy actually said.

"All Risk" is the most common marine cargo coverage type, and also the most misunderstood. The name implies comprehensive protection. The policy document says something considerably more specific.

 

 

What "All Risk" Actually Means

In marine insurance, "All Risk" doesn't mean coverage for all risks. It means coverage for all physical loss or damage to cargo from external causes — unless specifically excluded. The distinction matters because the exclusions are substantial.

Under a standard Institute Cargo Clauses (A) policy — the international standard for "All Risk" marine cargo cover — your cargo is protected against:

  • Physical loss or damage from fire, explosion, sinking, grounding, collision, or overturning of the carrying vessel
  • Theft of an entire package from the vessel or at a port terminal
  • Water damage from sea, river, or lake water entering the vessel, container, or storage facility
  • General Average contributions — the maritime principle under which all cargo owners share the cost of a deliberate sacrifice made to save the voyage
  • Damage from loading, discharge, or transhipment operations

 

 

What Is Not Covered — The Exclusions That Matter

This is where most importers discover their policy was narrower than they assumed. Standard exclusions under Clauses (A) include:

Inherent Vice

Damage caused by the nature of the goods themselves — fresh produce that ripens and spoils, goods that rust due to their own moisture content, products that deteriorate because of how they were manufactured. If the cargo's own properties caused the loss, the insurer considers it a foreseeable risk and won't pay.

Insufficient Packaging

One of the most common claim rejection grounds on the China-Africa corridor. If the insurer determines that the cargo was inadequately packed for an ocean voyage — poor cartonning, insufficient blocking and bracing, no moisture protection on ocean-sensitive goods — the damage will be attributed to packaging failure, not a covered peril.

Delay

Financial loss caused by late delivery is not covered — even if the delay results from a covered event like a vessel grounding. Marine cargo insurance covers the physical goods, not the commercial consequences of receiving them late.

War and Strikes

Standard All Risk policies exclude war, civil war, terrorism, strikes, riots, and civil commotion as standard. These are available as separate extensions — Institute War Clauses and Institute Strikes Clauses — and carry an additional premium. On the China-Africa corridor, given the political risk profile of some transit and destination markets, these extensions are worth discussing with your insurer before shipment.

⚠️ Watch Out — Underinsurance is a separate and very common problem. Most importers insure their cargo at invoice value. The correct insured value is the CIF (Cost, Insurance, Freight) value plus an agreed percentage — typically 10 to 15% — to account for the importer's anticipated profit and the cost of replacement. Insuring at invoice value means you recover less than your actual loss when a claim succeeds. Our Trade and Compliance team can advise on the appropriate insured value for your specific cargo type and trade route.

 

 

What to Check on Your Policy Before You Ship

  • Is the cover Clauses (A)? Clauses (B) and (C) are progressively more restrictive. Clauses (A) is the standard for All Risk cover on commercial cargo. Anything less is a named perils policy, not All Risk.
  • What is the insured value and is it correct? CIF value plus a percentage, not just the purchase price.
  • Are war and strikes extensions included? For China-Africa shipments, particularly those transiting through or discharging at politically sensitive markets, these extensions matter.
  • What are the packaging requirements? Some marine insurers specify minimum packaging standards in the policy schedule. Know what they are before your supplier packs the goods.
  • What is the claims notification window? Most marine policies require notification of loss within a specific timeframe — 3 days for apparent damage, 7 days for concealed damage in most standard forms. Missing this window can void your claim entirely.

👉 Pro Tip: If your cargo insurance is arranged by your Chinese supplier under CIF terms, you have limited control over the policy terms, the insured value, and the insurer's claims service in your destination country. Under FOB or CFR terms, you arrange your own insurance and choose your own insurer. For any shipment where cargo value justifies the insurance cost, arranging coverage yourself rather than accepting the supplier's CIF policy is almost always the better commercial decision. See: Incoterms Explained: What You Actually Need to Know.

Not sure your cargo coverage is right for this shipment?

Our Trade and Compliance team can review your coverage requirements based on your cargo type, trade route, and destination market before the vessel sails.

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Last reviewed: June 2026  ·  Category: Risk & Insurance
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