What are the 11 covered perils?

What Are the 11 Covered Perils in Property Insurance?

When reviewing a commercial property insurance policy, you might come across something called the Basic Causes of Loss Form (CP 10 10). This standard document outlines the specific risks—known as "covered perils"—that the policy protects against. While the list includes more than 11 events, many professionals refer to the core set of perils that make up the foundation of coverage.

Among the key covered perils are fire, lightning, and explosion—common risks that can cause significant damage to buildings and contents. Smoke damage, often a byproduct of fire, is also included, even if no flames occur. Natural forces like windstorm and hail are covered, which is especially important in regions prone to severe weather.

Man-made risks are part of the list too. Riot and civil commotion coverage comes into play during periods of public unrest, helping businesses recover from damage caused by large-scale disturbances. Accidents involving aircraft and vehicles—like a car crashing into a storefront—are also protected under the form.

Intentional damage from outsiders, such as vandalism, is covered, offering peace of mind when property is targeted. Another often-overlooked peril is sprinkler leakage. It might seem minor, but a malfunctioning fire suppression system can lead to costly water damage.

Geological risks like sinkhole collapse and volcanic action are surprisingly included, though their relevance depends heavily on location. For properties in vulnerable areas, these inclusions can be crucial.

Keep in mind that while these perils are covered under the Basic Form, the policyholder must ensure their property is adequately insured and that exclusions—like flood or earthquake, which require separate coverage—are understood. Knowing exactly what’s in and what’s out helps businesses prepare for the unexpected without overestimating their protection.