Written by Sabrina G. Anwah and fact-checked by Jane Meacham, this article provides an explanation of open-perils insurance in less than five minutes.
How All-Risk Insurance Works An Example of All-Risk Insurance Types of All-Risk Insurance Frequently Asked Questions (FAQs)
All-risk insurance covers a wide range of property losses, with the exception of those that are specifically excluded by the policy.
You may be familiar with your home or small business commercial property insurance coverage, but you may not be aware of all-risk property coverage, also known as open-perils coverage.
A wide range of property losses are covered by all-risk insurance, or all-risks insurance, with the exception of those specifically excluded by the policy.
This is in contrast to standard insurance with “named perils,” which specifies which losses will be covered. Since consumers may be confused by the term “all risk,” the insurance industry is moving away from using it.
The terms “open perils” and “special perils” are now used more frequently. A peril is an unanticipated occurrence that may result in property loss or damage, such as a thunderstorm.
