TUESDAY, DECEMBER 31, 2019
Your commercial property insurance policy will cover most of the hazards likely to befall your place of business, but it won't cover everything. There are some common exclusions that you will find in more policies than not. These are as follows:
There may be other exclusions that apply based on your industry, where you live, and who you're buying insurance from. Take the time to read through your policy, ask your insurer any questions you might have, and don't make the mistake of simply assuming something is covered.
- Flooding. Just as with home insurance, your basic policy isn't going to cover floods. You can invest in a commercial flood insurance policy to help cover the gap, of course.
- Earthquakes. This is similar to the scenario with flooding. Most home policies do not cover earthquakes. The same goes for most commercial property policies. Again, you can invest in an additional policy to bridge the gap.
- Commercial auto accidents. Your commercial property insurance policy may cover the store, the warehouse and the office. But it's not going to cover your autos. Insuring vehicles and insuring buildings are two completely different things. Sometimes, a company outfitted to do one might not even be equipped for the other. You might be able to buy commercial auto and property insurance as part of the same package, but they're going to be two separate policies.
- Equipment breakdown. Insurance is intended to cover things that might happen. Equipment breakdown is something that certainly will happen. So, you may find that while your insurer is more than willing to buy you a new pizza oven when yours is damaged in a fire, they're not going to pay for a new one just because the old one is getting on in years. Equipment breakdown is not a risk to be managed. Instead, it’s something that is just about guaranteed to take place over time.
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