Aquaculture Insurance - Types of stock Cover

What risks can I expect my policy to protect my stock against?

There are two types of cover available in the market - "All Risks" and "Named Perils". Actually, "All Risks" is a slightly misleading term, because no policy will cover your stock against absolutely every contingency. Every policy has some exclusions.

So why is it called "All Risks"?

The answer is that the two types of policy come from two different concepts.

The first, "All Risks", stems from an approach which starts by covering everything, and then excludes perils the underwriter does not want to cover, hence it is known as "All Risk" cover.

The "Named Perils" approach operates in the reverse - it starts from the position of covering nothing, and builds up the risks it protects against, step by step.

Which is the best type of cover?

There is no definite answer to that. Each can be just as good as the other - it depends what you want to insure against, how much you want to pay, and what you think are the risks your farm faces. There are pros and cons to both approaches, and you need to talk to your broker about them. Both types of cover are valuable, and they offer more "sleep at night" comfort than being completely uninsured!