Against All Risks - AAR

AAA

DEFINITION of 'Against All Risks - AAR'

An insurance policy that provides coverage against all types of loss or damage rather than specific ones. Exclusions can still be included in an against-all-risks policy, but the insured will be covered against any risks that are not specifically excluded.


Also called "all-risk insurance".

INVESTOPEDIA EXPLAINS 'Against All Risks - AAR'

This type of policy is the opposite of a named peril policy, which protects against the specific losses that are named in the policy. An against-all-risks policy provides broad coverage beyond anything that is specifically excluded from the policy. For example, if the policy does not specifically exclude losses resulting from falling space debris (such as satellite parts), the insured is automatically covered for such a loss. The term "all risk" often appears in quotation marks since the coverage includes almost all risks, except for the named exclusions.

RELATED TERMS
  1. Workers' Compensation Catastrophe ...

    A type of loss reinsurance that is purchased by insurers of workers' ...
  2. Wear And Tear Exclusion

    A provision of an insurance contract that states that the normal, ...
  3. Workers' Compensation Coverage ...

    Insurance that protects employees under state laws, and provides ...
  4. Work And Materials Clause

    A provision in many property insurance policies that allows the ...
  5. Business Risk Exclusion

    A type of coverage that is often omitted from product liability ...
  6. Hazard Insurance

    Insurance that protects a property owner against damage caused ...
RELATED FAQS
  1. Why might one insurance policy cost more than another?

    There are several reasons that an insurance policy can cost more or less at different agencies. Some of the more common ... Read Full Answer >>
Related Articles
  1. Insurance

    Insurance Tips For Homeowners

    Use these simple ideas to save money and get better coverage for your house.
  2. Home & Auto

    The History Of Insurance

    The first written policy appeared in Hammurabi's Code. Find out how it evolved from there.
  3. Home & Auto

    How An Insurance Company Determines Your Premiums

    Find out how insurers use credit history to build an insurance score and how it could affect your bottom line.
  4. Insurance

    15 Insurance Policies You Don't Need

    Learn how to save money by saying "no" to unnecessary coverage.
  5. Home & Auto

    When Things Go Awry, Insurers Get Reinsured

    Guru Warren Buffett is making this sector popular. Learn more here.
  6. Options & Futures

    20 Investments You Should Know

    To take advantage of all your investing options, you need to know what your choices are. Here we tell you about the diverse features and advantages of 20 different financial instruments.
  7. Investing

    What’s The Essence Of Smart Beta In Fixed Income?

    In essence, smart beta strategies seek to re-write index rules to capture factors, such as value, quality, or low volatility, in their stock portfolios.
  8. Investing

    How To Invest Outside Your Comfort Zone?

    Sometimes, when it comes to investing, we have to step outside of our comfort zone and use investment tools to express a market view or specific outcome.
  9. Investing

    How Do Millennial Women Invest?

    The theme for Women’s History Month is “Make it Happen”, and that is exactly what millennial women are doing when it comes to their investments.
  10. Options & Futures

    Was Buffet Right about Derivatives as WMDs?

    Why Warren Buffet described derivatives as weapons of mass destruction, and when can they be helpful or harmful?

You May Also Like

Hot Definitions
  1. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  2. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  3. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  4. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  5. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  6. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
Trading Center