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A named-perils insurance policy covers accidental physical damage or loss to an insured property that is caused by perils that are specifically mentioned or listed in the policy document.
Examples of a named-perils policy are Fire and Burglary Insurance. A Fire Insurance policy covers physical damage or loss due to a fire outbreak. If the loss is due to flooding, the insurance company will deny the claim unless flood was specifically mentioned in the policy as a covered peril.
Assets All Risks insurance is typically more costly than Named Perils insurance. The buyer therefore has to decide which type of asset insurance to buy to suit his/her business needs. The choice depends on the type and size of business one is running, its location and other considerations.
If you decide to buy a named-perils insurance policy, you may need the expertise of an experienced insurance broker who knows something about the type of business you are running. He/she will help you put together a policy that best covers the perils likely to cause physical damage or loss to the assets you use in running your business.