Prior to working in the insurance industry, I purchased insurance because I had to. I did not really understand the ins and outs of what I was purchasing or exactly what risks it would or would not protect me from. An insurance policy can be intimidating and sometimes confusing, but it is important to understand your coverage prior to a loss rather than after the damage is done to avoid unexpected gaps. There are three commercial property forms (basic, broad and special) that identify the causes of loss (or perils) for which coverage is provided. The basic and broad causes of loss forms are named peril forms whereas the special cause of loss form is an opened peril form. The named peril form provides coverage for losses caused by only those specifically listed while the open peril coverage form is an all risk form that provides coverage for losses by any cause unless it is specifically excluded.
Please give your agent a call today if you have any questions on the coverage forms within your policy.