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📋 '''Named-peril coverage''' refers to an [[Definition:Insurance policy | insurance policy]] provision or coverage structure under which only those [[Definition:Peril | perils]] explicitly identified by name in the contract trigger a valid [[Definition:Claim | claim]]. In the insurance industry, this term is used interchangeably with [[Definition:Named peril insurance | named peril insurance]] and stands in contrast to [[Definition:All-risk insurance | all-risk]] or open-peril coverage, where the policy covers all causes of loss except those specifically excluded. The named-peril approach is one of the oldest and most widely used coverage frameworks in global [[Definition:Property insurance | property insurance]], rooted in the principle that an [[Definition:Insurance carrier | insurer]] should be able to define — and price — the exact set of risks it agrees to absorb.

⚙️ Operationally, named-peril coverage requires the [[Definition:Insurance policy | policy]] to contain a definitive list of covered causes of loss. Common perils found in such policies include fire, lightning, windstorm, hail, explosion, vandalism, and theft, though the specific list varies by product, insurer, and jurisdiction. Some markets offer tiered named-peril forms: in the United States, [[Definition:Insurance Services Office (ISO) | ISO]] publishes both a Basic Form (covering a narrow set of perils) and a Broad Form (adding perils such as falling objects, weight of snow or ice, and accidental discharge of water), each stopping short of the comprehensive Special Form that operates on an all-risk basis. In other markets, particularly in parts of Asia and the developing world, named-peril [[Definition:Fire insurance | fire policies]] remain the default commercial property product, sometimes augmented by endorsements that extend coverage to additional perils such as [[Definition:Flood insurance | flood]], earthquake, or [[Definition:Terrorism insurance | terrorism]]. When a loss occurs, the [[Definition:Burden of proof | burden of proof]] rests on the [[Definition:Policyholder | policyholder]] to demonstrate the damage resulted from a listed peril.

🔎 The practical consequence of named-peril coverage is that any peril not on the list is effectively uninsured, making thorough [[Definition:Coverage review | coverage review]] essential during the [[Definition:Policy placement | placement]] and [[Definition:Policy renewal | renewal]] process. [[Definition:Insurance broker | Brokers]] and [[Definition:Underwriter | underwriters]] must collaborate to ensure that the named perils align with the actual risk profile of the insured property and operations — a task that grows more complex as emerging risks such as [[Definition:Cyber risk | cyber-physical events]] and climate-driven perils challenge traditional peril categories. From a [[Definition:Reinsurance | reinsurance]] perspective, the underlying coverage form shapes how ceded losses are classified and whether they fall within the scope of [[Definition:Treaty reinsurance | treaty]] protections. While [[Definition:All-risk insurance | all-risk]] forms have gained market share in mature insurance markets, named-peril coverage remains deeply relevant in both price-sensitive segments and markets where regulatory or capacity constraints limit the availability of broader forms.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Named peril insurance]]
* [[Definition:All-risk insurance]]
* [[Definition:Peril]]
* [[Definition:Property insurance]]
* [[Definition:Causes of loss form]]
* [[Definition:Endorsement]]
{{Div col end}}

Definition:Named-peril coverage - Revision history

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