21 Feb 2019
Common Commercial Property Exclusions

Here are some of the damages not covered by your commercial property insurance.

As a business owner, it is your responsibility to ensure that your company has the right insurance protection in place.  If you have already secured commercial property insurance, then you might assume that you are covered for every risk that comes your way.  Unfortunately, this simply isn’t the case, and there are some common damages excluded from coverage.  Here are some of the commercial property insurance exclusions you need to watch out for.

Flood and Earthquake Damages

Coverage for flood damages is excluded in standard commercial property policies.  The only way to secure this coverage is with a specialty commercial flood insurance policy.  So, if your business is located in an area of high flood risk, then you should secure this specialty policy to avoid a dangerous coverage gap.  Similar to flood damage, standard commercial property policies will not offer coverage for earthquake damage.  To secure this important coverage, you will have to secure specialty earthquake insurance for your business.

Equipment Breakdown

Your commercial property insurance will protect your business’s equipment if it ever sustains damage due to a covered peril, such as a fire.  However, your insurance will not cover you for the damages caused by equipment breakdown or malfunction.  These equipment repair or replacement costs will come out of your own pocket unless you have equipment breakdown insurance in place.

Commercial Auto Accidents

While your company’s vehicles are technically commercial property, they are not covered under your commercial property insurance policy.  To secure coverage for your company’s vehicles, you will need to secure commercial auto insurance.  Securing this type of insurance will ensure that the cost of auto accidents or other vehicular damage events does not affect your business’s profits.

These are some of the common things that your commercial property insurance will not cover.  Are you looking to secure the comprehensive insurance protection that your business needs?  If so, then contact the experts at Patterson & Associates in Richardson, Texas for assistance today.