Which term is commonly associated with a policy that covers specific risks?

The term that refers to a policy covering specific risks is known as "named peril." A named peril policy lists explicitly the risks or perils that are covered. This means that only the specified risks are insured, and if a loss occurs due to a risk that is not included in the policy, the insurer is not liable for that loss.

For example, if a named peril policy covers risks such as fire, theft, and vandalism, it will only pay for claims resulting from those specific events. Any damage from other causes not mentioned in the policy will not be covered. This is an important aspect of insurance as it helps policyholders understand the limitations of their coverage.

This contrasts with an open peril policy, which covers all risks except those specifically excluded in the policy, providing broader protection. The terms "comprehensive insurance" and "general coverage" are broader and less precise, not specifically denoting a policy that focuses on particular risks. Thus, named peril is the accurate term associated with policies that cover specific risks.