Open Perils

Open perils (also called all risks) coverage insures against any direct physical loss unless the policy lists the cause as excluded. Common exclusions include flood, earthquake, war, wear and tear, and intentional acts.

The burden shifts: the insurer must show an exclusion applies rather than the insured proving a named peril caused the loss. Open perils is broader than named perils coverage and is typical for commercial property special forms and many homeowners special form policies.

Mysterious disappearance of equipment may be covered under an open perils business policy unless excluded as unexplained loss; a named perils policy would not cover it unless theft were listed and proven.

Policyholders assume open perils means everything is covered; floods and earth movement still require separate coverage. Concurrent causation disputes arise when one cause is covered and another excluded.