Open Peril

Open peril is an all-risk insurance, except for those specifically excluded in the policy. It provides broad and comprehensive protection for the insured property. Under this protection, the company is responsible for covering any loss or damage that occurs unless it is explicitly omitted.

Common exclusions in an open peril policy may include acts of war, intentional acts, nuclear hazards, government actions, and certain types of natural disasters. Each insurance policy may have its own specific exceptions, so it’s important for policyholders to review their documents to understand what risks are excluded from coverage.

Open peril policies are typically contrasted with named peril policies. These policies provide coverage only for the specific risks that are explicitly listed. If a loss or damage occurs due to a risk that is not named in the policy, it will generally not be covered.

Open peril policies are considered more comprehensive because they provide protection for a wide range of risks. However, they may be more expensive.