PROPERTY INSURANCE
All risks definition
All risks is a form of property insurance that covers loss or damage from any cause not specifically excluded by the policy.
In practice, this means a form of property insurance that covers any loss or damage arising from any cause or peril that is not specifically excluded under the terms of the insurance policy. All risks policies contain exclusions, which typically relate to inevitable causes of loss. This gives insurers, brokers, reinsurers and risk managers a shared way to discuss the concept when reviewing policies, claims, regulation or market data.
This term is especially useful in property insurance, commercial insurance and claims assessment. It helps clarify what losses may be covered and how policy wording affects the scope of protection. It also helps users compare how insurance is structured, regulated, priced or claimed across different markets.
All risks is closely related to named perils, open perils, special perils and exclusions. Linking these concepts together helps build a clearer glossary structure and gives readers a stronger understanding of how individual insurance terms connect within wider international insurance practice.
At a glance
- Used in
- Property insurance, commercial insurance and claims assessment.
- Purpose
- Helps clarify what losses may be covered and how policy wording affects the scope of protection.
- Important because
- Clear definitions support better comparison of insurance products, market practices and regulatory requirements across jurisdictions.
- Related terms
- named perils, open perils, special perils and exclusions.
Example of all risks insurance
A company buys property insurance on an all risks basis. When equipment is damaged by an unexpected incident, the policy may respond unless the cause of damage is excluded by the wording.