What does a Commercial Named Perils form primarily cover?

The Commercial Named Perils form is designed to provide coverage for specific losses that are explicitly listed in the insurance policy. This means that only the perils that are named in the policy are insured, while anything that is not named is not covered. For example, if the policy states that it covers fire, lightning, explosion, and theft, then losses caused by these events would be compensated. However, any other types of losses, such as water damage or vandalism, would not be covered unless they are also specified in the policy.

This approach allows businesses to have tailored coverage that fits their specific needs by only insuring against the risks they choose. It is essential for policyholders to understand the terms of coverage in their Commercial Named Perils policy to know what risks are protected.