Named Perils vs. All-Risk Insurance in Canada

A named-perils policy covers loss caused by the perils the policy lists. An all-risk policy starts more broadly, usually covering fortuitous direct physical loss or damage unless the policy excludes it. “All risk” does not mean every loss is insured, and neither label replaces the need to read the insuring agreement, definitions, exclusions and endorsements. Under named-perils coverage, the insured must connect the loss to a listed cause such as fire, lightning or windstorm. The actual list varies by policy. If the applicable peril is not listed, that coverage grant does not respond. Under an all-risk or open-perils form, the insured must first prove that the loss falls within the initial grant of coverage—for example, fortuitous direct physical loss to insured property during the policy period.