What Are Some Common Exclusions In Commercial Insurance Policies?

Commercial insurance policies often have exclusions that limit the coverage available to a company or business. Exclusions may apply to a certain risk, such as fire or earthquakes, or they may apply to a certain industry, such as manufacturing or construction. 

In most cases, it’s best to talk with your agent or broker about the details of your company’s current coverage to determine what might be excluded and what might be added. For issues in Bay Area, CA and surrounding cities, visit Wai Cheng Insurance Inc. 

Exclusions in Commercial Insurance 

Most commercial insurance policies will have a list of exclusions that won’t be covered under the policy. These exclusions can include items such as: property damage from lightning, wind, or hail, or from earthquakes, floods, or other natural disasters. 

Also, usually not covered are:

  • Damage from certain animals or insects, such as bees, fleas, rats, or termites
  • Damage from certain types of weather and climate conditions, such as hailstorms or tornadoes
  • Damage from acts of terrorism

Exclusions are often based on the type of business and the risk involved, so they will vary greatly depending on the policy. Many policies include specific exclusions for things like accidental death and dismemberment, intentional acts, travel, and many other scenarios. 

Certain types of assets, such as inventory, are typically excluded in commercial insurance policies. An inventory might be worth thousands of dollars, but when it’s written on paper and stored in a warehouse, it has no value. 

Another common exclusion is equipment. Most businesses have some type of equipment, from computers to coffee makers, that can be worth a lot of money. 

Most businesses insure these items, but if you want to make sure your policy covers them, you can ask your insurance agent about equipment exclusions. Another common exclusion is business interruption. 

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Most commercial insurance policies have a list of things that are typically excluded. In some cases, these exclusions may be related to certain events that are deemed to be of low risk. 

In other cases, there may be legal or moral reasons for why certain things are not covered. Wai Cheng Insurance Inc. will handle your inquiries in Bay Area, CA.