---
title: All-Risk insurance as mitigation in cases of General Average
description: General Average is a maritime law principle where all parties in a shipment share the costs of emergency actions, potentially leading to unexpected expenses for cargo owners.
image: https://blog.customodal.com/hubfs/Imported_Blog_Media/general-average-e1692633373294.jpg
---

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# All-Risk insurance as mitigation in cases of General Average

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[Mike Eberl](https://blog.customodal.com/author/mike-eberl) May 22, 2023

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![All-Risk insurance as mitigation in cases of General Average](https://blog.customodal.com/hubfs/Imported_Blog_Media/general-average-e1692633373294.jpg)

General Average is a legal principle in maritime law that allows the costs incurred in an emergency situation to be shared by all parties involved in a shipment. In such a situation, the cargo owner may be required to contribute to the expenses incurred by the carrier or the ship owner, even if the cargo itself was not damaged or lost. This can result in unexpected costs and delays for the cargo owner.

To mitigate the risk of having to pay for General Average contributions, cargo owners can purchase All-Risk protection, which provides coverage for loss or damage to cargo during transportation by sea. All-Risk protection is a comprehensive type of marine insurance that covers most risks, except for those specifically excluded in the policy. This can include risks such as theft, damage caused by weather or rough handling, and losses due to General Average. [(Learn more about All-Risk Protection HERE.)](https://customodal.com/blog/why-you-should-consider-all-risk-shippers-protection/)

In the event of General Average, an All-Risk policy would cover the cost of the contribution required from the cargo owner, up to the limit of the policy. The company would work with the cargo owner to evaluate the loss and calculate the amount of the contribution, and then pay that amount on behalf of the insured.

Having All-Risk protection can provide peace of mind to cargo owners, as it helps to protect them from unexpected costs associated with General Average. However, it is important to note that the policy may have specific exclusions and limitations, so it is important to carefully review the terms and conditions of the policy to ensure that it provides the desired coverage.

To learn more, contact Customodal today!

 

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