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📑 '''Named-peril policy''' is an [[Definition:Insurance policy | insurance contract]] that provides [[Definition:Indemnity | indemnification]] only for losses arising from causes of loss — or perils — that are explicitly identified in the policy language. This form of coverage is one of the two principal approaches to structuring [[Definition:Property insurance | property insurance]] (the other being [[Definition:All-risk policy | all-risk]], or open perils, coverage), and it has been a staple of insurance product design for well over a century. [[Definition:Policyholder | Policyholders]] selecting a named-peril policy accept a more limited scope of protection in exchange for typically lower [[Definition:Premium | premiums]].

🔍 In practice, the policy form will specify each covered peril — fire, lightning, windstorm, hail, riot, civil commotion, smoke, aircraft or vehicle impact, explosion, vandalism, sprinkler leakage, and others — along with any associated [[Definition:Sub-limit | sub-limits]], [[Definition:Deductible | deductibles]], or qualifying conditions. The insured bears the [[Definition:Burden of proof | burden of proof]] to demonstrate that a claimed loss was caused by one of these listed perils, which is the inverse of the burden under an all-risk form (where the [[Definition:Insurance carrier | insurer]] must prove an [[Definition:Exclusion | exclusion]] applies). This allocation of the burden of proof is one of the most consequential practical differences between the two policy types and frequently determines the outcome of contested [[Definition:Claim | claims]]. [[Definition:Underwriter | Underwriters]] favor named-peril structures when they want tight control over the risks they assume, particularly in lines or territories where emerging or hard-to-model hazards make open perils coverage impractical.

💼 For [[Definition:Insurance broker | brokers]] placing coverage, the named-peril policy requires careful gap analysis. A client whose operations face [[Definition:Flood risk | flood]], [[Definition:Earthquake | earthquake]], or other perils not commonly included in standard forms may need supplemental [[Definition:Endorsement | endorsements]] or standalone policies to achieve adequate protection. On the carrier side, the named-peril approach simplifies [[Definition:Reserving | reserving]] and [[Definition:Catastrophe modeling | catastrophe modeling]] because the universe of covered events is finite and well-defined. The structure also plays into [[Definition:Reinsurance | reinsurance]] negotiations, where treaties may mirror the named-peril logic of underlying policies to ensure alignment between ceded and retained exposures.

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Named peril]]
* [[Definition:All-risk policy]]
* [[Definition:Open perils]]
* [[Definition:Burden of proof]]
* [[Definition:Property insurance]]
* [[Definition:Endorsement]]
{{Div col end}}

Definition:Named-peril policy - Revision history

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