Owning a business is a rewarding experience, but it also comes with its share of risks. Commercial property insurance is a crucial line of defense, protecting your building, equipment, and inventory from unforeseen events. However, like any insurance policy, it's important to understand what isn't covered. Let's break down some of the most common exclusions in this insurance.
While both are crucial for your business, commercial property and commercial auto insurance are separate policies. This means damage caused by a vehicle, whether it's yours or someone else's, hitting your building won't be covered by your property insurance. For accidents involving company-owned vehicles, you'll need separate insurance.
These natural disasters can cause devastating property damage. Unfortunately, standard commercial property insurance policies typically exclude flood and earthquake damage. If your business is located in an area prone to these events, consider purchasing additional coverage in the form of specific flood insurance or earthquake insurance.
This insurance protects your equipment from damage caused by covered perils like fire, theft, or vandalism. However, it generally doesn't cover breakdowns due to mechanical issues, normal wear and tear, or operator error. To safeguard your business against these common occurrences, consider adding equipment breakdown coverage to your policy. This can help cover the cost of repairs or replacements if your equipment malfunctions.
A power outage can disrupt your business operations and potentially lead to spoilage of inventory or loss of data. While frustrating, most commercial property insurance policies won't cover financial losses resulting from power outages that occur outside of your building. However, some policies may offer optional coverage for business income interruption in the event of a covered peril causing a power outage within your premises.
This insurance typically covers your building, its permanent fixtures, and business property within the insured location. However, there can be exclusions for specific types of property, such as:
By familiarizing yourself with common exclusions, you can avoid unexpected gaps in your commercial property insurance coverage. Here at Number 1 Insurance, our experienced agents can help you review your policy, identify potential exclusions, and explore additional coverage options to fit your specific business needs. Contact us today to navigate the complexities of insurance and ensure your property is protected against the most common risks. Call us at (714) 848-4400 for a quick consultation with our expert insurance agents.
