Glossary / Policy structure / Special Perils

Special Perils

Also known as: special perils · special form · open perils · all-risk

Policy structure DICEE: Insuring Agreement

The broadest property coverage basis, insuring all direct physical loss except causes the policy specifically excludes.

Special perils, often written as the special form or special causes of loss form, is the widest property coverage available: it covers any direct physical loss or damage except the causes the policy specifically excludes. This is the opposite of a named-perils approach, where only the listed causes are covered. Because coverage is defined by what is excluded rather than what is listed, the burden shifts to the insurer to prove an exclusion applies, which generally works in your favor at claim time. Startups insuring equipment, tenant improvements, prototypes, or inventory usually want special-perils (open-perils) coverage so an unusual loss is not denied simply because no one thought to name it.

Where you'll see it

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Why it matters for your business

  • Special perils covers unexpected causes of loss that a named-perils list would miss.
  • Coverage is defined by exclusions, so the insurer must prove a loss is not covered, not you.
  • It is the strongest property basis for protecting equipment, prototypes, and improvements.
  • Knowing your policy's exclusions tells you where even special-perils coverage stops.

People also ask

What are special perils in insurance?

Special perils is a property coverage basis that insures all direct physical loss or damage except the causes the policy specifically excludes. It is broader than named-perils coverage, which only protects the causes listed in the policy. It is also called the special form, open perils, or all-risk.

Is special perils the same as all-risk?

In practice, yes. Special perils, special form, open perils, and all-risk describe the same idea: coverage for any cause of loss unless the policy excludes it. Insurers moved away from the label all-risk to avoid implying that literally everything is covered, since exclusions still apply.

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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.