Multiple Peril Insurance

What Does Multiple Peril Insurance Mean?

Multiple peril insurance is a policy designed to cover a broader range of damage and loss compared to standard property insurance. It typically combines the features of comprehensive property insurance, which covers various risks, with coverage for specific perils, such as floods or earthquakes.

Multiple peril insurance is also referred to as multi-peril insurance or commercial multiple peril insurance.

Insuranceopedia Explains Multiple Peril Insurance

Multiple peril insurance is designed for a wide range of businesses, including agriculture, where crops may be damaged by natural events such as hail or windstorms. Farmers buying multi-peril crop coverage often pair it with revenue protection crop insurance, which pays out when yields fall short, or commodity prices drop between planting and harvest. In addition to covering land and structures, this type of insurance can also cover the loss or damage to equipment, including machinery used in production, such as trucks and mills. In other words, multiple peril insurance offers broader coverage than typical property and casualty insurance. Small businesses can get similar bundled coverage through a business owner’s policy, which combines property and general liability insurance into one contract and usually costs less than buying each part separately.