How Does All Perils Insurance Coverage Work?
How does all perils insurance insurance coverage work is a common question that ALIGNED’s Canadian insurance brokers are asked. To properly answer the question “How does all perils insurance insurance coverage work?” you first need to understand that there are many types of business insurance, including all risk insurance, named perils insurance etc. and they are definitely not all the same!
All Perils Insurance Coverage Defined
For more clarity if you are wondering how does all perils insurance insurance coverage work you are likely inquiring about how commercial property insurance or business property insurance works as these are the commercial insurance products that are structured based on perils.
The term peril is commonly understood to mean the following as defined by dictionary.com:
- exposure to injury, loss, or destruction; grave risk; jeopardy; danger: They faced the peril of falling rocks. (noun)
- something that causes or may cause injury, loss, or destruction. (noun)
- to expose to danger; imperil; risk. (verb)
All Perils Insurance Coverage Explained
In the context of business insurance products it effectively means what types of events, situations, circumstances etc. the insurance policy will respond to. More specifically a named perils business property insurance policy will only cover damage to property caused by the perils specific named like fire, flood etc. In contrast all perils insurance coverage works by covering all types of events, situations and circumstances etc that aren’t specifically excluded.