What is All-Risk Insurance? Everything You Need to Know

All-risk insurance, or open peril insurance, covers many different risks or dangers unless the policy says they are not covered. This insurance helps you in case something happens that other types of insurance don't cover. It can make you feel better and less worried.

Table of Content

All Risk Insurance: A type of insurance that covers a wide range of perils or risks, except those specifically excluded in the policy.

Key Takeaways

  • Comprehensive Coverage: All-risk insurance covers a broad range of perils, providing extensive protection compared to named perils insurance.
  • Policy Exclusions: Be aware of specific exclusions in all-risk policies, such as floods and intentional acts, which may leave gaps in coverage.
  • Higher Premiums: The broad scope of coverage typically results in higher premiums than more limited insurance policies.

Understanding All-Risk Coverage

How It Works

All-risk insurance assumes coverage for any peril unless it is explicitly excluded in the policy. This approach places the burden of proof on the insurer to prove that a loss is not covered.


  • All-risk insurance protects you better than named perils insurance. It covers more things, so you have fewer chances of not being protected.
  • Peace of Mind: Policyholders can rest assured knowing they are covered for a wide range of unforeseen events.


  • Cost: All-risk policies can be more expensive than named perils policies due to the broader scope of coverage.
  • Exclusions: All-risk policies usually do not cover certain risks, such as floods, earthquakes, and intentional acts.

Special Considerations

  • Umbrella policies protect you from many different kinds of problems and keep you safe. They help make sure that everything is covered and you are protected.
  • Commercial and personal insurance policies may have different levels of coverage. It's important to understand what type of policy you have to know what is covered.

When is All-Risk Insurance Relevant?

Commercial Property Insurance

Businesses can get all-risk insurance to protect their things from many different kinds of problems. This helps them keep running without any interruptions.

Commercial Auto Insurance

All-risk coverage can protect businesses from the cost of accidents and theft involving their commercial vehicles. This means they won't have to pay as much money if something bad happens with their vehicles.

High-Value Items

If you have expensive things like art or jewelry, all-risk insurance can help keep them safe. This is a good idea if you want to protect your valuable things.

Peace of Mind

All-risk insurance is good for people and businesses because it covers a lot of different things. It gives you peace of mind and helps you handle any problems that might come up.

Key Questions to Ask Your Insurance Agent

When you want to get all-risk insurance, make sure to ask your insurance agent these questions so you know what is covered:

  1. What are the specific exclusions in this all-risk policy?
  2. Does the policy offer any additional coverage options?
  3. How does the claims process work for all-risk coverage?
  4. Is there a difference in premium between all-risk and named perils coverage?

Important Considerations

Read Your Policy Carefully

Understanding the details of your all-risk policy is essential. Ensure you read the policy thoroughly to know what is covered and what is excluded.

Ask Questions

Do not hesitate to ask your insurance agent for clarification on any aspects of the policy that are unclear. This will help you make an informed decision.

Review Regularly

Insurance needs can change over time. Regularly review your policy to ensure it continues to meet your needs and adjust coverage as necessary.

Get Multiple Quotes

Shopping around and getting multiple quotes can help you find the best coverage at a competitive price.

Pros and Cons of All-Risk Insurance


  • Comprehensive coverage means you are protected from many different types of dangers. This helps make sure that you don't have to worry about things happening that your insurance doesn't cover.
  • Simplified understanding means making it easier to understand what is covered by insurance. This makes the whole process simpler and less confusing.
  • Using simpler words helps avoid arguments later. This makes it easier to handle claims.


  • All-risk insurance policies usually cost more money than named perils policies because they cover a wider range of risks.
  • Exclusions: Despite the broad coverage, certain exclusions may still leave gaps in protection.
  • Sometimes people might not agree on what counts as something that isn't covered, and this could cause arguments.


All-risk insurance is a strong type of coverage that helps keep individuals and businesses safe. It costs more money, and there are some things it doesn't cover, but the good parts of having complete protection usually make up for the bad parts. If you learn about all-risk insurance and ask good questions, you can choose what's best for you.

If you want to learn more about all-risk insurance, we recommend talking to an insurance expert. They can help you make a policy that is perfect for your specific needs.

All Risk Insurance's FAQ

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

A named perils policy specifically lists and covers the risks explicitly mentioned in the policy, while an all-risk (or open-perils) policy provides broader coverage by protecting against all risks except those explicitly excluded.

What perils are covered under all-risk insurance?

All-risk insurance covers a wide range of perils, including but not limited to fire, theft, vandalism, and natural disasters, unless these are specifically excluded.

What is included in all-perils coverage?

All-perils coverage typically includes protection against various risks such as fire, theft, water damage, and more, but the exact list can vary depending on the insurer's exclusions.

What are the 12 named perils?

The 12 named perils commonly covered include fire or lightning, windstorm or hail, explosion, riot or civil commotion, aircraft, vehicles, smoke, vandalism, theft, falling objects, weight of ice/snow/sleet, and accidental discharge or overflow of water.

Do I need all-perils insurance?

Whether you need all-perils insurance depends on your individual circumstances, risk exposure, and personal preference for comprehensive coverage versus potentially lower costs of a named perils policy.