All Risks

AAA

DEFINITION of 'All Risks'

A type of insurance coverage that can exclude only risks that have been specifically outlined in the contract. "All risks" means that any risk that the contract does not specifically omit is automatically covered. For example, if an all-risks homeowner's policy does not expressly exclude flood coverage, then the house will be covered in the event of flood damage.

INVESTOPEDIA EXPLAINS 'All Risks'

This type of policy is found only in the property-casualty market. All-risks insurance is obviously the most comprehensive type of coverage available. It is therefore priced proportionately higher than other types of policies, and the cost of this type of insurance should be measured against the probability of a claim.

RELATED TERMS
  1. Property

    1. Anything over which a person or business has legal title. ...
  2. Risk

    The chance that an investment's actual return will be different ...
  3. Insurance

    A contract (policy) in which an individual or entity receives ...
  4. Casualty Insurance

    A broad category of coverage against loss of property, damage ...
  5. Lloyd's Of London

    A British insurance market where members join hands as syndicates ...
  6. Reinsurer

    A company that provides financial protection to insurance companies. ...
Related Articles
  1. Using Economic Capital To Determine ...
    Personal Finance

    Using Economic Capital To Determine ...

  2. Deducting Disaster: Casualty And Theft ...
    Taxes

    Deducting Disaster: Casualty And Theft ...

  3. Choosing The Best Disability Insurance ...
    Options & Futures

    Choosing The Best Disability Insurance ...

  4. An Introduction To Value at Risk (VAR)
    Options & Futures

    An Introduction To Value at Risk (VAR)

comments powered by Disqus
Hot Definitions
  1. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  2. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  3. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center