What is all-risk coverage?
All-risk insurance, also called open perils coverage, provides protection from any risks that aren’t explicitly excluded in your property insurance. This means that if you need to make a claim over loss or damage to your business property, it will be covered unless it’s already listed as a loss scenario that the insurance company will not cover; most non-listed events are covered.
For example, say you’ve purchased multiple new PCs for your software development business, and the delivery person accidentally drops one of the machines on the floor. The computer breaks and also damages the flooring on impact. All-risk property insurance would cover claims for both the PC and the floor since the event was accidental, unforeseen, and not listed among the specific loss scenarios that your policy excludes.
How does all-risk coverage differ from named perils?
An all-risk insurance policy protects against everything except for incidents that are specifically excluded in the policy. In comparison, named perils coverage only protects you from losses that are listed as covered in your policy. In other words, the insurance company will only pay for damage that occurred as a result of a specific peril listed in the contract.
It should come as little surprise then that all-risk coverage is more expensive than named perils coverage, but it can offer you greater peace of mind. An all-risk policy will more fully protect you against unforeseen mishaps since many accidents can happen at your workplace that you hadn’t thought of or planned for.
All-risk commercial property insurance
Running an IT business comes with a lot of risk, which is why it’s important to have the right kind of insurance coverage in place. Whether you own an office building or rent your workspace, you’ll need commercial property insurance to help replace any assets that are stolen, damaged, or destroyed. All-risk property insurance can take that protection a step further by safeguarding you against any broader, unforeseen events. It will cover any losses that aren’t specifically excluded in your policy, unlike named perils coverage, which will only protect you from events that are listed as covered.
All-risk commercial auto insurance
If you or any of your employees travel to conduct business and meet with clients, it’s essential that you have a comprehensive commercial auto insurance policy. While a standard auto insurance policy will protect you in the event of a collision or bodily injury, all-risk coverage will ensure you are even more fully protected by offering additional coverage for unforeseen events that aren’t listed in a standard policy.
Total loss vs. all-risk insurance
When deciding what kind of insurance coverage you need for your IT business, you’ll need to consider the differences between total loss versus all-risk insurance. A total loss means just that: an unforeseen event, such as a fire or a flood, completely destroys everything. If a vehicle, office space, or other assets are damaged beyond the point where it’s salvageable, that’s considered a total loss.
But damage to one or two items is much more common than losing everything at once, which is why all-risk insurance is a good idea. All-risk insurance can provide coverage for any type of damage, whether it’s small or large.
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