Most Common Exclusions In Commercial Property Insurance
Commercial property insurance is a type of insurance that helps to protect businesses from losses due to damage to their buildings or contents. This can include everything from office equipment to inventory, and it can help to cover the cost of repairs or replacement. In some cases, commercial property insurance can also provide protection against loss of income if the business has to close temporarily due to damage. Commercial property insurance is typically purchased by businesses as part of a larger business insurance package, but it can also be purchased as a standalone policy. It is an important form of protection for any business owner.
However, you may not be able to make a claim depending on the cause of your property damage. Here are exclusions in commercial property insurance you need to be aware of.
Earthquakes Are Not Covered Under Commercial Property Insurance
Most commercial property insurance policies will not cover earthquake damage. This is because earthquakes are considered to be an act of God and are therefore outside of the insurer’s control. You need a separate policy to protect your business against destruction from earthquakes.
Acts of War Are Not Covered Under Commercial Property Insurance
Typically, commercial property insurance does not offer coverage for acts of war such as missile damage as a result of war.
Civil Disobedience Is Not Covered Under Commercial Property Insurance
Most commercial property insurers exclude civil disobedience such as riots, civil unrest, and strikes. Every policy is different so you need to go through your policy wording to check if you are covered in this scenario. Otherwise, you can purchase a separate policy that covers civil disobedience.
Political Violence and Terrorism Are Not Covered Under Commercial Property Insurance
If your business suffers damage from political violence or acts of terrorism, it’s unlikely that you can make a claim from your commercial property insurance. Most policies don’t offer coverage for these acts and you won’t be compensated.
Some Fires Are Excluded From Commercial Property Insurance
Although insurance policies are detailed in defining the terms and conditions, the definition of “fire” may be ambiguous. Your commercial property insurance may only cover you for certain types of fire damage, like a forest fire that spreads to your business premises. However, if you operate a restaurant and a faulty oven results in a fire, you may not be able to make a valid claim.
Smoke Damage Are Excluded From Commercial Property Insurance
Smoke damage is rarely covered by commercial property insurance, particularly in agricultural or industrial sectors. Again, no one policy wording is the same so it’s best to go through whether you need protection against smoke damage and if the insurer offers it.
Damage by Insects and Vermins Is Excluded From Commercial Property Insurance
Another common exclusion is damage caused by vermin or insects. This includes damage caused by termites, carpenter ants, and other pests.
Damage Due to Biological Agents Is Excluded From Commercial Property Insurance
Most commercial property insurance policies do not offer coverage for damage caused by viruses, communicable diseases, and biological agents.
If your commercial property suffers damage and you are not sure what you are entitled to claim, it is always best to consult a qualified public adjuster. Stone Claims Group can review your policy and assess the viability of a claim. Schedule your free claim review today.