This is a type of cover that is often misunderstood.
To the average layman on first glance, ‘All Risks’ cover sounds like just the sort of insurance policy you would want. Cover for anything!
Unfortunately, the phrase on its own can easily be taken out of context.
‘All risks’, is an extension of cover that simply means cover applies to ‘all locations and by that, an insurer means all ‘reasonable’ locations.
When added to an office insurance policy, all risks cover will generally protect office contents or equipment away from the office premises.
For example, if you take a laptop out of the office to a meeting at another location, or home to do some work over the weekend, the office’s contents insurance would not normally apply outside the office.
With an all risks extension though, the laptop would still be covered, within certain limits.
Certain limits have to be applied as an insurer cannot be expected to pay out for all situations, especially those that may easily be avoided.
These are usually stated clearly in the policy wording, but are often fairly obvious.
An example would be where an employee goes to the bathroom in a cafe and leaves a laptop unattended. Upon returning to their table, the employee discovers the laptop has been stolen.
Theft of the laptop from the office itself would have been covered, but in a public place, left unattended, it is unlikely to be.
Such incidents that are easily avoidable with simple caution will never be covered by an insurer.
Also, it is worth noting that office insurance isn’t the only insurance policy that all risks cover is available on.
Home contents insurance frequently offers this extension as well, which is particularly useful for covering items such as jewellery, mobile phones and other personal items, although these items often need to be declared to the insurer and registered on the policy before hand.