Glossary / Policy structure / Peril

Peril

Also known as: Covered peril · Named peril · All-risk

Policy structure

A specific cause of loss that an insurance policy may cover, such as fire, theft, or wind.

A peril is the event that causes damage or loss, for example fire, theft, water damage, windstorm, or vandalism. Property policies define coverage in one of two ways. A named-perils (or specified-perils) policy covers only the causes of loss it explicitly lists, so if a peril is not named, it is not covered. An all-risk (or open-perils) policy covers any cause of loss except those specifically excluded, which is broader coverage. Reading which structure your policy uses, and what it excludes, tells you what is actually protected.

Where you'll see it

PolicyDeclarations pageQuote

Why it matters for your business

  • Whether a policy is named-perils or all-risk determines how much you actually have to prove at claim time.
  • Named-perils policies put the burden on you to show the loss came from a listed cause.
  • All-risk policies are broader but still contain exclusions that define the real edges of coverage.
  • Understanding perils and exclusions together is how you spot gaps before a loss happens.

People also ask

What is a peril in insurance?

A peril is a specific cause of loss that a policy may cover, such as fire, theft, wind, or water damage. Coverage depends on whether the policy names that peril (named-perils) or covers all causes except stated exclusions (all-risk).

What is the difference between named perils and all-risk?

A named-perils policy covers only the causes of loss it specifically lists, so anything not named is excluded. An all-risk (open-perils) policy covers any cause of loss except those it specifically excludes, which is broader. All-risk generally offers more protection but still turns on its exclusions.

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Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.

Reviewed by Andrei Craciunescu, CA Licensed Insurance Broker #4467994

Last updated: July 2026.