All-Risk vs. Named Peril Commercial Property Insurance

Commercial BuildingMost business owners recognize the need for commercial property insurance. Commercial property insurance helps all different kinds of businesses pay to replace or repair buildings and property in the event of a fire, storm, wind or other incident covered by the policy. Without proper protection, your company could suffer financial ruin due to property loss or a lawsuit resulting from your business activities.

Commercial property insurance isn’t restricted to the land and building used by a business, it can also apply to signs, fixtures, furniture, fencing machinery, merchandise and other contents. Even if you don’t own the office, building or land used by your business, you still have property which needs coverage.

Types of Property Coverage

There are two coverage options available to you when considering commercial property insurance, named peril and all-risk. These two policies each take the opposite approach. Both can meet your needs, but your financial status and amount of coverage required determine which kind you buy.

All-Risk Coverage
All-risk coverage is just as it sounds; it protects you from everything except the specific threats listed in the policy. When a claim is filed, the insurance company will evaluate whether damages are a result of a policy exclusion. If not, then coverage applies.

Named Peril Coverage
Named peril specific policies cover only the threats noted in the policy, basically the opposite of all-risk coverage. Claims filed under named peril coverage are also the opposite of all-risk, in that you (the insured) have the burden of proving one of the risks named in your policy caused the damages incurred.

Which coverage is right for you?

You may already know which type of policy is right for you and lenders sometimes require a specific type of insurance, but most business owners find it helpful to compare the benefits.

Named Peril Benefits
Lower cost
Most likely to cover natural disasters without additional riders

All Risk Benefits
Protects against unpredicted events
Comprehensive coverage
Less work to file a claim

The agents at Invincia Insurance Solutions can discuss your specific policy differences and determine which type of coverage is best for you. In addition, they can gather different quotes from many insurance providers, allowing you to get back to the work that makes your company thrive. Fill out our brief commercial insurance quote form online or call (804) 751-0600 to get started today.

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