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What is all risks insurance?

"All risks" insurance (also referred to as open peril insurance) refers to a type of insurance coverage that automatically covers any risk that the contract does not explicitly omit. You can find all risks insurance in a variety of industries. Examples include agriculture, business, machinery, and real estate. This coverage offers protection from losses arising from numerous causes. It creates an all-in-one package that is less expensive than purchasing policies for each one separately. For example, if an "all risks" homeowner's policy does not expressly exclude flood coverage, then the house will be covered in the event of flood damage.

All risks insurance is often purchased commercially. Some types of coverages available include general liability, medical expenses, busines property, commercial crime, liquor liability, equipment breakdown protection, product liability, spoilage, business income, utility services, employee theft, and auto liability.

 


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When do I need to be aware of all risks insurance?

Many business owners should be aware of this insurance, but one great example of someone who needs to be aware of all risks is a person in agriculture, and all risks or open peril crop insurance is one of the more popular types. This protects against things, such as drought, wind damage, excessive moisture, and flood damage, that lead to crop loss. Coverage allows for both price and yield protection and it is a credit enhancement for those looking for agricultural loans.

What is important to know about all risks insurance?

If you are a business owner, all risks insurance helps protect against a variety of things that can result in loss to your livelihood. It is a convenient package and you do not need to worry about separate policies. There are some other important items you should know about all risks insurance:

  • All risks insurance offers more comprehensive coverage than property and casualty insurance does.
  • With all risks agricultural insurance, not only does it cover crop insurance, but it also covers property structures, land, and equipment such as trucks, mills, and production machinery.
  • All risks insurance is the most common and popular commercial package insurance coverage in the country, and it is usually available for a discount.