Peril

Definition

• Something with the potential to cause a loss. Some perils are insurable, but other perils may be uninsurable due to high levels of risk. Damages resulting from theft or fire are examples of insurable perils, whereas flood damage on property located in a designated flood zone would be considered an uninsurable peril.

Synonyms
liability, loss, exposure, danger, risk

Related Terms and Acronyms

• Commercial Multiple Peril Insurance — Definition,
  • Insurance policies that provide businesses coverage for more than one named peril.
• Commercial Property Insurance — Definition,
  • Property insurance that provides coverage for damages to commercial property due to named perils such as fire or theft.
• Concurrent Causation — Definition,
  • If there is more than one cause of damage in an insurance claim and one cause is covered while the other is not, the insurer is obligated to cover the loss.
• Demolition Insurance — Definition,
  • Insurance that covers demolition costs for an irreparably damaged building.
• Exposure — Definition,
  • How much liability an insurer takes on when they write an insurance policy.
• Hazard — Definition,
  • Anything that poses a potential risk of injury or damage.
• Hazard Insurance — Definition,
  • Insurance that covers hazards that are considered risky enough not to be covered by a standard insurance policy.
• Insurance Claim — Definition,
  • An application for benefits made by an insurance policyholder after an insured event.
• Kidnap and Ransom Insurance — Definition,
  • Insurance that covers expenses involved if an individual is kidnapped and ransom payments are made.
• Latent Defect — Definition,
  • A deficiency in a piece of property that can't be seen easily, such as termite damage or the presence of dangerous levels of radon.
• Loss Control — Definition,
  • The combined efforts undertaken by both the insurer and the insured to lower the risk, frequency and extent of potential losses.
• Mortality and Expense Risk Charge — Definition,
  • A charge sometimes applied to reimburse an insurer for the risks in a policy.
• Multiline Insurance Policy — Definition,
  • A combination of different insurance policies that are rolled into a single insurance policy.
• Named Perils — Definition,
  • Risks that are specifically listed as being covered in an insurance policy.
• Named Perils Insurance Policy — Definition,
  • Insurance that only provides coverage in the event of a loss from a peril specifically named in the insurance policy.
• Policy Declarations — Definition,
  • The section of the insurance policy that declares the specifics of the insurance policy including premiums, named perils, and policy limits, amongst others.
• Property Insurance — Definition,
  • Insurance that provides coverage for damages to property from a number of perils.
• Reciprocal Insurance Exchange — Definition,
  • A group of individuals, firms and corporations that mutually insure each other.
• Rent Loss Insurance — Definition,
  • Hazard insurance that pays for a loss in rental value or rental income if damage causes the property to become unfit for habitation.
• Renter's Insurance — Definition,
  • Insurance that covers renters for liabilities or damages occurring to or within insured property.
• Self Insurance — Definition,
  • Setting aside money or assets for a potential future loss.
• Uninsurable Peril — Definition,
  • Something that cannot be insured due to a high risk of loss.