Open Perils Coverage
Open perils coverage (sometimes called all-risk coverage) insures property against every cause of physical loss except those specifically excluded in the policy, which flips the usual approach where a policy only pays for perils it explicitly lists. The Allen Thomas Group reviews the exclusions list on open perils policies with clients, since the word "open" doesn't mean unlimited, it just means the burden of proof works differently.
Open Perils vs. Named Perils Coverage
| Open Perils | Named Perils | |
|---|---|---|
| What's covered | Everything not specifically excluded | Only causes of loss listed by name |
| Burden of proof after a loss | Insurer must show the cause is excluded | You must show the cause matches a listed peril |
| Typical premium | Higher, broader protection | Lower, narrower protection |
What's Still Excluded Even Under an Open Perils Form
Open perils coverage is broad, but it isn't all-encompassing. Standard exclusions across most open perils commercial property forms typically include flood, earthquake, wear and tear, mechanical breakdown, and intentional acts, meaning a business still needs separate coverage (like commercial flood insurance) for those specific exposures. Reading the exclusions section is really the only way to know what an open perils policy doesn't do, since the insuring agreement itself is written broadly on purpose.
Why the Distinction Matters When You File a Claim
Under a named perils policy, if your loss doesn't clearly match one of the listed causes, the claim can be denied outright, and the burden falls on you to show it fits. Under an open perils policy, the insurer instead has to point to a specific exclusion to deny the claim, which generally works in the policyholder's favor for unusual or hard-to-categorize losses. That shift in who has to prove what is often the real value open perils coverage delivers, more than any single peril it happens to add.
How The Allen Thomas Group Can Help You
We'll help you understand exactly how open perils coverage affects your coverage and cost, then shop your policy across 15+ A-rated carriers to find the right fit.
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