Did you know your business insurance doesn’t cover you against all risks? You probably know this. However, do you know some of the risks not covered by commercial insurance? Some are more common than you think. CO Insurance Specialist looks at common business insurance exclusions to help you purchase "add-ons" to protect your business.
Like home insurance, typical commercial insurance doesn’t cover your business against flood damage. However, you can purchase flood insurance from private carriers or the National Flood Insurance Program (NFIP) to protect your business. Since catastrophes like floods can impact many policyholders at a go, insurers exclude such risks from coverage because they can incur massive losses during compensation.
Standard business insurance doesn’t cover damage resulting from earthquakes. However, like flood damage, you can purchase a separate earthquake insurance policy to protect your business, especially if it’s in an earthquake-prone location.
Intentional or illegal activities
If your business suffers losses because of an intentional act by you or your employers, your insurer will likely void any claim you raise.
Your insurer isn’t likely to cover damage that can be avoided with proper maintenance. For instance, if your computers start acting up because of delayed maintenance, you can’t seek compensation from your insurer for new ones. Similarly, if your business building or assets suffer from rust or corrosion, your insurer won’t compensate you for the wear and tear.
Commercial property insurance covers inventories, computers, buildings, and furniture, but not your business vehicles. For such, you must purchase commercial auto insurance to enjoy the coverage.
Commercial insurance in Wheat Ridge, CO
Want to learn more about business insurance? Please get in touch with CO Insurance Specialist. Our sales agent will explain everything you need to know about commercial insurance to help you make informed decisions when buying your policy.