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 Articles
  1. Insurance Tips For Homeowners
    Insurance

    Insurance Tips For Homeowners

  2. The History Of Insurance
    Home & Auto

    The History Of Insurance

  3. How An Insurance Company Determines ...
    Home & Auto

    How An Insurance Company Determines ...

  4. 15 Insurance Policies You Don't Need
    Insurance

    15 Insurance Policies You Don't Need

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center