What type covers All-Risk Insurance?

1. What Is All-Risk Insurance?

Unlike named-perils policies that only cover events like fire or theft, all-risk policies cover any accidental damage or loss unless the policy clearly excludes it.

Common exclusions include:

• Normal wear and tear

• War or nuclear events

• Intentional acts

• Earthquake or flood (unless endorsed)

If it’s not on the exclusion list, it’s usually covered.

2. Insurance Types That Offer All-Risk Coverage

All-risk coverage is typically included in:

• Commercial property insurance – Protects business buildings and equipment

• Builder’s risk insurance (Contractors All Risks) – Covers materials and work in progress

• Business owner’s policies (BOPs) – Often contain all-risk property clauses

• High-end homeowner policies – Some include open-perils wording

Always verify the policy language—many use “all-risk” but still include a long list of exclusions.

3. Pros and Cons of All-Risk Insurance

Advantages:

• Broad protection for unforeseen losses

• Fewer coverage gaps

• Burden of proof is on the insurer to deny claims

Disadvantages:

• Usually more expensive than named-perils policies

• May include hidden exclusions

• Still excludes common events like wear, flood, or mold

4. Who Needs All-Risk Coverage?

All-risk policies are best suited for:

• Business owners with valuable property or equipment

• Contractors managing high-risk construction projects

• Homeowners wanting premium protection

• Anyone seeking wide protection with minimal gaps

5. Key Differences at a Glance

Final Takeaway

If you want the highest level of protection, all-risk insurance is a smart choice—especially for businesses, construction, or high-value property. It may cost more, but it shields you from a wider range of potential losses.

Want help finding the right all-risk insurance policy?
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