What is the coverage of a "Special Form" policy?

A "Special Form" policy, often referred to as an "All Risk" policy, provides coverage for certain risks that are specifically outlined in the policy itself. This type of policy typically covers losses from a broad range of causes unless they are specifically excluded.

The policy defines what risks are covered, and while it does generally offer more extensive protection than named peril forms (which list only the perils that are covered), it still operates under the principle that coverage is contingent on either the presence or absence of specific exclusions. This means that if a peril is not mentioned as covered, it will not be indemnified. The intent behind the "Special Form" coverage is to provide a more comprehensive safety net while still providing clarity on what is and isn't included.

In contrast, residential properties’ open coverage, comprehensive coverage for personal belongings, and liability coverage for business operations focus on specific aspects of insurance that are not aligned with the broader risk approach that a "Special Form" policy offers. The correct understanding of a "Special Form" policy is crucial for grasping how various insurance coverage types work within both personal and commercial contexts.