Under an open perils policy, the burden of proof to show a loss was caused by an excluded peril rests with whom when the insurer seeks to deny a claim?

Under an open perils policy, the burden of proof to show a loss was caused by an excluded peril rests with whom when the insurer seeks to deny a claim?

• A. The insured
• B. The insurer
• C. The public adjuster
• D. The court

Answer: (B)

In an open perils (also called all-risk) policy, everything is covered unless a specific exclusion applies. When the insurer chooses to deny a claim, the burden is on the insurer to prove that the loss was caused by a peril that is excluded by the policy. If the insurer cannot establish an exclusion, the loss is covered. This means the insured isn’t required to prove coverage first; the insurer must show the cause falls under an exclusion to deny the claim.

In an open perils (also called all-risk) policy, everything is covered unless a specific exclusion applies. When the insurer chooses to deny a claim, the burden is on the insurer to prove that the loss was caused by a peril that is excluded by the policy. If the insurer cannot establish an exclusion, the loss is covered. This means the insured isn’t required to prove coverage first; the insurer must show the cause falls under an exclusion to deny the claim.