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📋 '''Named peril insurance''' is a form of [[Definition:Property insurance | property insurance]] coverage that protects the [[Definition:Policyholder | policyholder]] only against losses caused by perils specifically listed in the [[Definition:Insurance policy | policy]] — as opposed to [[Definition:All-risk insurance | all-risk]] (or open-peril) coverage, which covers any cause of loss not expressly excluded. The distinction is foundational in insurance contract design worldwide and directly determines how [[Definition:Claims | claims]] are adjudicated: under a named peril form, the insured bears the [[Definition:Burden of proof | burden of proof]] to demonstrate that the loss resulted from one of the enumerated perils, such as fire, lightning, windstorm, hail, explosion, riot, or smoke. This structure gives [[Definition:Insurance carrier | insurers]] greater certainty about the scope of their exposure and typically results in lower [[Definition:Premium | premiums]] for the insured, reflecting the narrower range of covered events.

⚙️ A typical named peril policy will list between ten and twenty specific causes of loss, depending on the jurisdiction and the product line. In the United States, the Insurance Services Office ([[Definition:Insurance Services Office (ISO) | ISO]]) Causes of Loss — Basic Form and Broad Form are standard examples of named peril approaches, while the Special Form provides [[Definition:All-risk insurance | all-risk]] coverage. Similar distinctions exist in other markets: UK commercial property policies may be written on either a specified-perils or all-risks basis, and in many Asian and Latin American markets, [[Definition:Fire insurance | fire insurance]] policies traditionally follow a named peril structure with optional extensions. When a [[Definition:Claim | claim]] is filed, the [[Definition:Claims adjuster | adjuster]] must match the cause of loss to a listed peril. If the actual cause falls outside the enumerated list — say, gradual water seepage that is not included — the claim is denied, even if the damage itself is substantial. This places a premium on careful policy selection and adequate [[Definition:Coverage gap | coverage gap]] analysis during the [[Definition:Broking | placement process]].

💡 Choosing between named peril and all-risk coverage is one of the most consequential decisions in structuring a [[Definition:Commercial insurance | commercial]] or personal property program. Named peril forms offer cost savings and clarity, but they create potential blind spots where unlisted perils can leave an insured without protection. [[Definition:Insurance broker | Brokers]] and [[Definition:Risk manager | risk managers]] must weigh the trade-off between [[Definition:Premium | premium]] affordability and breadth of coverage, particularly for complex commercial operations where unusual or evolving perils — such as equipment breakdown or certain types of water damage — may not appear on a basic named peril list. The named peril versus all-risk distinction also matters in [[Definition:Reinsurance | reinsurance]] treaty design, where the underlying policy form affects the scope of losses that can flow through to the reinsurer. As [[Definition:Climate risk | climate-related perils]] intensify and new risks emerge, the adequacy of named peril lists has become an active area of product development and regulatory attention across global markets.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:All-risk insurance]]
* [[Definition:Property insurance]]
* [[Definition:Causes of loss form]]
* [[Definition:Coverage gap]]
* [[Definition:Insurance Services Office (ISO)]]
* [[Definition:Peril]]
{{Div col end}}

Definition:Named peril insurance - Revision history

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