What is perils?

Perils refer to events or circumstances that pose a threat or danger to people, property, or society. These can include natural disasters such as floods, earthquakes, hurricanes, and wildfires, as well as man-made hazards like terrorism, accidents, and economic crises. Insurers often use the term "perils" to describe the specific risks that are covered by an insurance policy.

Perils in insurance refer to specific events or circumstances that are covered under an insurance policy. They are typically listed in the policy's coverage section and vary depending on the type of insurance. Common perils in different types of insurance policies include:

Property Insurance (Homeowners, Renters, Commercial):

- Fire: Damage or destruction caused by fire or smoke
- Theft: Loss or damage due to theft or attempted theft
- Vandalism: Intentional damage or destruction of property
- Windstorm: Damage caused by high winds or hurricanes
- Hail: Damage caused by hail
- Water damage: Damage caused by floods, leaks, or overflows
- Earthquake: Damage caused by earthquakes

Auto Insurance:

- Collision: Damage to your vehicle caused by a collision with another object
- Comprehensive: Damage to your vehicle caused by events other than collisions, such as fire, theft, vandalism, or animal strikes
- Liability: Bodily injury or property damage caused to others by you or your vehicle

Business Insurance:

- Property damage: Damage or destruction to the business's property, including buildings, equipment, and inventory
- Business interruption: Loss of income due to a covered peril that disrupts the business's operations
- Product liability: Legal liability for bodily injury or property damage caused by a defective product
- Cyber liability: Financial losses or legal claims arising from data breaches or cyberattacks
- Employee injury: Injuries sustained by employees in the course of their employment

Health Insurance:

- Medical expenses: Costs associated with medical treatment, including doctor visits, hospital stays, and prescription drugs
- Hospitalization: Expenses incurred for overnight stays in a hospital
- Major medical expenses: Coverage for high-cost medical treatments and surgeries
- Dental and vision: Coverage for dental and vision care
- Prescription drug coverage: Coverage for the cost of prescription medications

Life Insurance:

- Natural death: Death resulting from natural causes, such as illness or old age
- Accidental death: Death resulting from an accident
- Terminal illness: Death due to a terminal or life-threatening illness
- Dismemberment: Loss of a limb or other body part
- Suicide: Death resulting from suicide