What does a Special Peril policy cover?

A Special Peril policy, also referred to as an "open peril" or "all-risk" policy, provides coverage for all risks of loss or damage except those specifically excluded in the policy. This means that unless a peril or cause of loss is explicitly stated as excluded, it is covered under the policy. This type of coverage is broader than a Named Peril policy, which only covers risks that are explicitly listed.

By focusing on the principle that the burden of proof is on the insurer to demonstrate that a claimed loss is excluded, policyholders benefit from greater protection. This approach offers peace of mind, knowing that they are safeguarded against a wide range of unforeseen incidents. Thus, the correct understanding of a Special Peril policy is that it covers all risks not explicitly excluded, making it an advantageous option for many insured parties.