You would wish that your commercial insurance policy could protect your business from all manner of risks. However, the reality is that no insurance policy is foolproof — your commercial insurance isn’t an exception. Typical business insurance has exclusions and limitations you should know to avoid frustrations when filing claims.
At August Vincent Insurance Agency in Huntley, IL, we sympathize with our clients when perils strike, only for them to realize they aren’t covered. To avoid such incidences, we continuously educate our clients on insurance policies to avoid common pitfalls.
Here we look at typical business insurance exclusions:
Flooding
Standard business insurance won’t protect you when floods damage your business premises and the assets inside. If you want flood protection, buy a stand-alone flood insurance policy from the National Flood Insurance Program (NFIP) or private insurers.
Earthquakes
Like home insurance, typical business insurance won’t help you when faced with earthquakes, sinkholes, and other earth movements. For such risks, you need to purchase a separate earthquake policy.
Commercial vehicles
While vehicles are your business property, they aren’t covered under your commercial property insurance. You need to invest in commercial auto insurance to protect your vehicle and the driver when accidents happen.
Equipment breakdown
Your commercial property insurance protects your equipment when a peril listed in your policy causes damage. However, if your equipment is faulty, your commercial insurance won’t come to your rescue. Unless you have an “equipment breakdown add-on,” you will have to cover the repair cost from your pocket, including business interruption costs.
Commercial liability coverage exclusions
If you have general business liability coverage, it protects you when accused of bodily injury, property damage, and advertising injury. However, this policy has numerous exclusions, including:
- Intentional acts
- Breach of contract
- Pollution
- Liabilities arising from your vehicle
- Wrongful advertising
- Unauthorized use of another’s name or product
Contact Us Today
Want to learn more about your commercial insurance policy in Huntley, IL? We are here to help. Please call, email, or visit August Vincent Insurance Agency for more information.
