Glossary AR (All Risks)

All Risks(AR) is a type of marine insurance that provides comprehensive coverage for all risks that may occur until the cargo arrives at its destination, and compensates for all losses caused by insured risks, regardless of the loss ratio, since partial loss exemption is not applied. The AR condition adopts a comprehensive liability approach and covers all losses, except for certain risks excluded from the coverage. Some of the risks not covered by AR are loss caused by intentional illegal acts of the insured, general damage to insured property, damage caused by improper packaging, and damage caused by the inherent defects or qualities of insured property. In addition, it does not cover losses caused by unseaworthiness and unsuitability of ship and transport equipment, and losses caused by war, strikes, riots, and civil commotions (W/SRCC).