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Named perils

Named perils coverage is a type of commercial property insurance that only protects you against losses your policy specifically lists.

What are named perils?

Named perils coverage is a form of commercial property insurance that protects you only against the hazards or perils specifically shown in your policy. For example, it might only cover damage resulting from:

  • Fire
  • Theft
  • Vandalism
  • Wind damage

However, if your business faces a high risk of loss from an unlisted event, talk to your licensed Insureon agent about adding a rider to your policy that addresses that exposure.

What happens if your property suffers a loss that isn’t listed in your policy?

If your policy doesn’t list a hazard that causes damage to your property, you won’t be covered for any losses. Your business will have to pay to repair or replace the property.

How is named perils insurance different from open perils coverage?

The insurance protection in a named perils policy is narrower than in an open perils policy. With named perils, you are only covered for events specifically listed in the policy document. With open perils, you are covered for all losses except those specifically excluded in the policy.

Are named perils policies better than open perils policies?

It depends. Named perils policies cost less because they offer less protection than an open perils policy. However, if your small business faces a broad range of risks, you may find yourself uninsured if you suffer an incident that isn’t specifically named in your policy.

Your decision depends on how you balance lower premiums with your exposure to risk. Your licensed Insureon agent can provide guidance after you complete a free application to compare property insurance quotes.

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