What Is A Peril And Why Is It Important?
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UPDATED: Sep 15, 2020
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A “peril” is the exposure to the risk of being injured, destroyed, or lost. Most insurance companies refer to “perils” as the particular risks that can cause loss or damage. In some insurance policies, these are referred to as “named perils” – the types of occurrences that can cause loss or damage for which the insurance company will provide coverage.
Many new policies are written on an “all-risk” basis, meaning that all perils are covered unless specifically excluded. One of the major differences between standard packaged insurance policies are which perils that cause a loss are covered. The more perils covered, the more you wind up paying.