What are Named Perils?

Named Perils is a property insurance approach that only covers losses caused by specific perils explicitly listed in the policy, such as fire, lightning, windstorm, or theft.

What You Need to Know

If your policy lists specific covered perils and your loss wasn’t caused by one of them, you have no coverage. This is the opposite of “all-risk” or “open perils” coverage, which covers everything except what’s specifically excluded.

Why It Matters for Restaurant Owners

Named perils policies are cheaper but provide narrower protection. They’re appropriate for limited budgets or specific coverage needs, but you must carefully review what perils are listed.

Coverage Gap Example:

If “water damage” isn’t listed but a pipe bursts, you’re uncovered.

Recommendation:

Most restaurant owners are better served by open perils coverage despite higher cost, as it provides much broader protection for unpredictable loss scenarios common in restaurant operations.