All Risks Insurance Singapore
The broad-form cover that protects against anything — except what it specifically says it won’t
An all risks insurance policy covers loss or damage to insured property from any cause, unless that cause is specifically listed as an exclusion in the policy, offering broader protection than a named-peril policy, which only covers losses from perils explicitly listed.
Not financial advice. All figures for educational reference only. Data as at October 2026.
Last updated: October 2026
- All risks policies flip the usual coverage logic: instead of listing what’s covered, they cover everything except what’s specifically excluded, which is why the exclusions section is the most important part to read.
- In Singapore, all risks cover commonly appears in property “contractors’ all risks” (CAR) policies for construction projects, electronic equipment all risks policies, and some high-value personal valuables and home contents policies.
- All risks insurance generally costs more than a comparable named-peril policy because the insurer is taking on broader, less precisely defined risk.
- Even under an all risks policy, standard exclusions typically remain — wear and tear, inherent defects, war, nuclear risk, and intentional acts by the insured are almost universally carved out.
- Reading the exclusions list carefully matters more with all risks cover than with named-peril cover, since the breadth of the headline promise can create a false sense that nothing is excluded.
Table of Contents
What Is All Risks Insurance?
Most insurance policies are written on a “named-peril” basis — they list the specific events covered (fire, theft, flood, and so on), and anything not on that list is automatically excluded. All risks insurance reverses this logic: it covers loss or damage from any fortuitous cause, except for a defined list of exclusions spelled out in the policy wording.
This doesn’t mean “covers literally everything.” The word “risks” refers to accidental, unforeseen events, not every possible loss scenario. Deliberate acts by the insured, gradual wear and tear, inherent product defects, and certain catastrophic or uninsurable perils (war, nuclear contamination) are near-universally excluded even under the broadest all risks wording.
In Singapore, all risks policies are common in specific commercial contexts — contractors’ all risks (CAR) insurance for construction sites, electronic equipment all risks cover for businesses with expensive IT infrastructure, and marine cargo “all risks” clauses — as well as in some personal lines products covering valuables like jewellery, art, or camera equipment while in transit or at home.
How It Works in Singapore
A Singapore business or individual purchasing all risks cover works with the insurer to agree a sum insured for the property being covered, and the policy wording then sets out the exclusions — rather than the inclusions — that apply. Because the burden of proof shifts, all risks policies are generally considered more favourable to policyholders when a claim arises: the insurer must prove an exclusion applies to deny a claim, rather than the policyholder having to prove the specific peril was on a named list.
Contractors’ all risks insurance is especially significant in Singapore’s construction sector, where developers and main contractors are typically contractually required to maintain CAR cover for the duration of a building project, protecting against physical loss or damage to the works, plant, and materials from most causes, alongside a linked third-party liability section.
For individuals, some premium home insurance and valuables policies in Singapore offer “all risks” extensions covering named high-value items — jewellery, watches, cameras — against loss anywhere in the world, not just within the home, which distinguishes them from standard contents insurance that is usually location-restricted and named-peril based.
Example
A Singapore condominium developer takes out a contractors’ all risks policy for a S$150 million project. During construction, a sudden and unexpected design-related collapse of partially completed structural work causes S$3 million in damage. Because the collapse wasn’t on any exclusions list (it wasn’t due to faulty workmanship explicitly excluded, nor war, nor wear and tear), the CAR policy responds and covers the reinstatement cost, subject to the policy deductible.
Contrast this with a named-peril property policy that only lists fire, lightning, and explosion as covered causes — a structural collapse during construction from an unlisted cause simply wouldn’t be covered at all under that narrower wording, regardless of how unexpected or innocent the cause was.
Advantages of All Risks Insurance
Broader default protection. Coverage extends to unusual or unforeseen causes of loss that a named-peril policy simply wouldn’t anticipate or list, reducing the chance of an uncovered gap.
Favourable claims burden. Since the insurer must demonstrate an exclusion applies to deny a claim, policyholders are generally in a stronger position than under named-peril wording, where they must prove the loss matches a listed peril.
Well-suited to high-value or mobile property. Valuables, construction works-in-progress, and sensitive electronic equipment benefit from broad cover precisely because the range of things that could go wrong is wide and hard to fully predict in advance.
Simplified underwriting conversation. Rather than negotiating a long list of specific perils, policyholders and insurers can focus discussion on the (usually shorter) exclusions list, which can streamline the buying process.
Risks and Limitations
Higher premiums. Because insurers take on broader, less precisely defined risk, all risks policies typically cost more than comparable named-peril cover for the same sum insured.
Exclusions still matter enormously. The breadth of “all risks” can create a false sense of total protection; standard exclusions (wear and tear, inherent defects, intentional damage, war, nuclear) remain in force and frequently become the focus of claim disputes.
Valuation disputes. Because all risks cover is often used for valuables, art, or construction works with less standardised valuation methods, disagreements over the insured value or claim amount can be more complex than for straightforward named-peril claims.
Not a substitute for liability cover. All risks typically covers physical loss or damage to property; it generally does not cover third-party injury or liability claims unless specifically extended or bundled with a separate liability section.
Policy wording varies significantly between insurers. One insurer’s “all risks” exclusions list can be materially longer or shorter than another’s, so comparing headline premiums without reading exclusions can be misleading.
The Bottom Line
All risks insurance offers Singapore businesses and individuals a broader safety net than named-peril cover by default, shifting the burden to insurers to prove an exclusion applies rather than requiring policyholders to match their loss to a specific listed peril. The trade-off is a higher premium and the ongoing need to actually read — and understand — the exclusions, since “all risks” has never meant “no exclusions.”
Related Terms:
Frequently Asked Questions
Does all risks insurance really cover everything?
No. “All risks” means any cause of loss not specifically excluded in the policy wording. Standard exclusions like wear and tear, inherent defects, intentional acts, war, and nuclear risk remain in force even under the broadest all risks policies.
What is the main difference between all risks and named-peril insurance?
Named-peril insurance only covers losses from causes explicitly listed in the policy. All risks insurance covers losses from any cause except those explicitly excluded, generally offering broader default protection.
Is all risks insurance more expensive?
Usually yes, because the insurer is taking on a wider, less precisely bounded scope of risk compared to a named-peril policy covering the same property and sum insured.
What is contractors' all risks (CAR) insurance used for in Singapore?
CAR insurance covers physical loss or damage to construction works, plant, and materials during a building project from most causes, and is often a contractual requirement for developers and main contractors on Singapore construction projects.
Should I buy all risks cover for personal valuables?
It can be worthwhile for high-value, portable items like jewellery or cameras, since all risks personal valuables cover often protects items anywhere in the world, not just inside your home, unlike standard named-peril contents insurance.
Disclaimer: This glossary entry is for educational purposes only and does not constitute financial advice. Data sourced from official regulator and industry websites as at October 2026.
