When purchasing a commercial insurance policy, you could be asking a question - what is the difference between coverage and a peril?

Coverage is more general and encompasses a range of potential risks, while peril is more specific and refers to the individual risks that are covered. Usually coverage is broader while peril is more specific. Usually coverage contains multiple perils.

Example

Commercial Property Insurance Coverage contains these perils

• Fire damage
• Natural disasters (such as hurricanes, earthquakes, and tornadoes)
• Theft and vandalism

General Liability Insurance Coverage contains these perils

• Slip and fall accidents
• Product liability claims
• Advertising injuries (such as libel, slander, or copyright infringement)

Last Update: March 2023