Question

1. What is the difference between a “named perils” policy and an “open perils” policy?

Answer 1

Answer :The difference between named perils and open perils are such that :

• In the named perils , it covered only losses that has been specifically mentioned in the list of policy where as in case of open perils means that the insurer covered all the losses of the person covered by the insurance policy company.
• In the name perils only theft, natural problem and other problem listed in the policy has been covered where as in open perils the policy all problem faced by an person related to the product insured.
• Example of natural perils are theft, damage of a product.where as case of open perils means all items listed in thepolicy and including extra items related to the product.