Commercial property insurance protects your business's physical assets from various risks like fire, theft, and vandalism. However, it's essential to understand that there are specific exclusions in commercial property insurance policies. Knowing what is not covered will help you avoid gaps in coverage and ensure your business is fully protected.
This blog will highlight some standard exclusions under commercial property insurance.
Flood damage is typically not covered under standard commercial property insurance policies. If your business is in a flood-prone area, you must purchase a separate flood insurance policy through the National Flood Insurance Program (NFIP) or a private provider. Flood insurance will cover damages caused by flooding due to heavy rains or storm surges.
Earthquake damage is another exclusion in most commercial property insurance policies. If your business operates in an area prone to earthquakes, you may need to buy earthquake insurance separately to protect your property, inventory, and equipment in case of seismic activity.
Commercial property insurance does not cover damage resulting from normal wear and tear or lack of maintenance. For example, repairs to a roof that leaks due to old age or poor upkeep will not be covered. Regular maintenance is essential to ensure your property remains in good condition.
While commercial property insurance covers property damage, it does not cover employee injuries. Employee injuries are typically covered under workers' compensation insurance. This policy is separate from your commercial property insurance and covers medical expenses and wage replacement for injured employees.
Standard commercial property insurance may not cover business interruption due to external events. For instance, if your business is forced to close temporarily after a covered event, you may not receive compensation for lost income. Adding business interruption insurance to your policy can provide coverage for these situations.
Damages caused by intentional acts or criminal activity, such as vandalism by an employee or fraud, are typically not covered. If the damage to your property is the result of criminal activity by your employees or owners, it may not be covered under standard policies.
Commercial property insurance does not cover cybersecurity risks, including data breaches and hacking incidents. Add cyber liability insurance to your policy to protect your business from the financial consequences of cyberattacks.
Commercial property insurance is crucial for safeguarding your business, but it doesn't cover everything. Understanding the exclusions and purchasing additional coverage when needed can ensure that your business is fully protected.
At Bell Black Insurance, we can help you assess your business's needs and identify gaps in your coverage. Contact us today at 208-356-9565 to ensure your business has the protection it deserves.
