What does All Risks Coverage mean? Read on to discover the definition & meaning of the term All Risks Coverage - to help you better understand the language used in insurance policies.
All Risks Coverage
Property insurance covering loss arising from any fortuitous cause except those that are specifically excluded. This is in contrast to named perils coverage, which applies only to loss arising out of causes that are listed as covered. Although many industry practitioners continue to use the term "all risks" to describe this approach to defining covered causes of loss in a property insurance policy, it is no longer used in insurance policies because of concern that the word "all" suggests coverage that is broader than it actually is. Because of this concern, some industry practitioners have begun to use the term "open perils" or "special perils" instead of "all risks."
We hope the you have a better understanding of the meaning of All Risks Coverage.