Business, Legal & Accounting Glossary
An insured peril is an incident that has the potential to cause property damage or loss but is covered by an insurance policy that pays for the loss or damage if it occurs.
There are two types of property insurance: named and comprehensive. Only the risks stated in the contract are covered by a named perils policy. The coverage is broader with more comprehensive insurance (referred to as an all-perils policy), however, there are still events that are deemed exclusions.
Because of the high chance of occurrence, an insurance company may refuse coverage for a certain danger. Flood coverage, for example, may be deemed an exclusion in a flood-prone location.
An insured peril is when your property has suffered damage or a loss that is noted and covered by your insurance policy. Some examples of an insured peril are things such as theft, fire, or accidental damage. If you face a loss due to an insured peril, then your insurer will settle the claim under the insurance policy.
For example, if your business was a fish and chip shop and your property was broken into and damaged, your insurer will pay out and cover the cost of the damage/loss you have experienced assuming you followed all of the requirements of the policy.
This would be called an insured peril.
A few examples of insured perils include:
An excluded peril is the opposite of an insured peril and usually does not cover things such as wear and tear.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Insured Peril are sourced/syndicated and enhanced from:
This glossary post was last updated: 18th January, 2022 | 0 Views.