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📋 '''Special form''' is a type of [[Definition:Property insurance | property insurance]] coverage structure — sometimes called "all-risk" or "open perils" coverage — that insures against all causes of physical loss or damage except those specifically excluded in the [[Definition:Insurance policy | policy]]. This stands in contrast to "named perils" or "basic form" policies, which cover only the hazards explicitly listed. The distinction is fundamental in [[Definition:Commercial property insurance | commercial]] and [[Definition:Personal lines | personal lines]] property [[Definition:Underwriting | underwriting]], as it determines the burden of proof: under a special form, the [[Definition:Insurance carrier | insurer]] must demonstrate that an exclusion applies to deny a [[Definition:Claims | claim]], whereas under a named perils form, the [[Definition:Policyholder | policyholder]] must prove that the loss resulted from a covered peril.

🔎 In practice, special form policies contain a carefully drafted exclusion section that removes coverage for exposures the insurer is unwilling to accept at standard pricing or at all — commonly including [[Definition:War exclusion | war]], [[Definition:Nuclear exclusion | nuclear events]], [[Definition:Wear and tear | wear and tear]], government action, and, increasingly, specific [[Definition:Cyber exclusion | cyber-related]] perils. [[Definition:Flood insurance | Flood]] and [[Definition:Earthquake insurance | earthquake]] are frequently excluded in standard special forms and offered through separate policies or endorsements. The terminology is most deeply embedded in the U.S. market, where the Insurance Services Office ([[Definition:Insurance Services Office (ISO) | ISO]]) publishes standardized special form policy editions — such as the CP 10 30 for commercial property — that serve as the baseline for most carriers' filings. In the [[Definition:Lloyd's of London | Lloyd's]] and London market, equivalent broad-form coverage exists but is typically negotiated on a bespoke or manuscript basis rather than following a single standard form. Other markets, including those in continental Europe and Asia, use analogous all-risk structures under different naming conventions, with policy wording governed by local regulatory requirements and market practice.

💡 Choosing between special form and named perils coverage is one of the most consequential decisions in structuring a property insurance program. Special form provides broader protection and avoids coverage gaps that the insured may not anticipate, but it commands higher [[Definition:Premium | premiums]] and requires the insurer to maintain robust exclusionary language to manage [[Definition:Aggregation risk | aggregation risk]] and emerging perils. For [[Definition:Broker | brokers]] advising commercial clients, recommending special form coverage is often standard practice for high-value or complex risks, supplemented by [[Definition:Endorsement | endorsements]] that buy back certain excluded perils where capacity exists. The ongoing evolution of exclusion language — particularly around [[Definition:Communicable disease exclusion | communicable disease]], cyber events, and climate-related perils — means that the practical breadth of a special form policy is never static, and careful wording review remains essential at every renewal cycle.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Property insurance]]
* [[Definition:Named perils]]
* [[Definition:Exclusion]]
* [[Definition:Insurance Services Office (ISO)]]
* [[Definition:Endorsement]]
* [[Definition:Commercial property insurance]]
{{Div col end}}

Definition:Special form - Revision history

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