How Does All Risks Insurance Work In Canada

Want to know how all-risks insurance works in Canada?

Have you heard the term “all risks insurance” and wonder if it really exists? Taken literally, “all risks” insurance sounds like it should do essentially that – cover all risks. That’s actually not the case. In fact, all risks coverage actually just describes the scope of coverage that’s provided within a Canadian commercial property insurance policy. Demystifying insurance terms and explaining the intricacies of coverage is why we write these posts. Read on to understand the basics of all-risks insurance.¹

So what exactly is all-risks insurance anyways?

A commercial property policy can be written in multiple ways, including named or specified perils or all risks. Also referred to as all perils coverage, all-risks insurance means that all perils causing property damage are covered – unless they are excluded.

By contrast, what’s known as a named perils insurance policy only covers the specific perils listed in the policy wording.

While many insurance industry practitioners use the term “all risks insurance” to describe covered causes of loss in a property insurance policy, you won’t find it in any insurance policy. This is because the phrase “all risks insurance” suggests that the coverage is broader than what it actually is.

This is why you may hear the terms “all perils”, “special perils” or “open perils” to describe “all risks”.²

Typical “all risks insurance” in action

A good example of when an “all perils”, “special perils” or “open perils” commercial property insurance policy can help protect your business from loss would be if, for example, an employee was moving a piece of equipment like a photocopier/fax machine and accidentally dropped it on the floor of your office, damaging both the photocopier/fax machine and the ceramic floor.

Unless specifically excluded from your policy, both the costs to repair the floor and to repair or replace the photocopier/fax machine would be covered by an “all perils”/ ”open perils” commercial property insurance policy.

This is why the insurance brokerage you choose is so important – your brokerage needs to be staffed by specialists who know your industry, the risks you face and the coverage you need. And this is where ALIGNED insurance brokerage surpasses other brokerages.

Why your coverage should align with your risks

When you are buying commercial insurance coverage you want to get as many risks as possible covered. Because all-risks insurance doesn’t really exist, if you are googling and trying to find it in Canada, you won’t.

Instead what you need are commercial insurance products that align directly with your organization’s risk exposures.

Our seasoned Canadian insurance brokers are specifically trained to not only identify your risks but help you prioritize the risks that your organization faces. Your dedicated ALIGNED insurance brokers will work with more than 65+ top Canadian insurance companies to secure the best coverage options for all risks you want to insure.

While all-risks insurance that covers any and all types of losses doesn’t exist, we can help you find the best value and options in the marketplace.

Talk to an ALIGNED broker about your commercial coverage options

As a leading Canadian commercial insurance brokerage, we strive to simplify the insurance buying process. You can click here to get a traditional insurance quote from one of our expert insurance brokers. We’ve also pre-offer 250+ fully online commercial insurance products. Each one of these products can be purchased instantly online now.