Your commercial insurance is superb in protecting your business against numerous risks, including liability claims, employee injuries, fire, and theft, among other perils listed in your policy. While business insurance is excellent, it’s not entirely perfect — it has limitations and exclusions. While it’s important to know what your commercial insurance covers, it’s equally pivotal to understand what it doesn’t cover. Berks County Insurance of Reading, PA sheds light on common commercial insurance exclusions to help you understand the riders or add-ons you need to buy to boost your standard coverage.
Although floods are common in Pennsylvania, typical business insurance doesn’t cover the damage. You need to purchase stand-alone flood insurance from the National Flood Insurance Program (NFIP) or private carriers to get flood damage protection. Flood insurance covers your premises plus the contents inside.
Just like floods, typical business insurance doesn’t cover damage from earthquakes. So, if you live in a high-risk earthquake zone, don’t forget to invest in an endorsement that protects your business from earth movements.
Your property insurance won’t cover mechanical failures and other breakdowns for the equipment used to run your operations. Similarly, normal wear and tear of your equipment aren’t covered by typical commercial insurance.
Personal vehicles used for commercial purposes
Have you converted your car for commercial use? Your commercial insurance won’t cover damages and injuries arising from such incidences.
This exclusion is obvious, but we will still say it because it happens. Your insurer will void any claim of damage caused intentionally. For instance, publishing something about someone when you clearly know that the information is false.
Breach of contract
Liability claims emanating from dishonored contracts are likely to be ignored by your insurer. Similarly, executing another person’s idea amounts to a breach of contract, and you won’t be compensated for any liability claims when sued.
Need to learn more about commercial insurance in Reading, PA? Please get in touch with Berks County Insurance.