Running a business is hard enough without having to worry about whether or not you’re properly insured. That’s why it’s important to have a clear understanding of what your commercial insurance policy covers—and, just as importantly, what it doesn’t. Allen & Associates Insurance Inc in Albany, OR can help you navigate this important insurance coverage.
Here are some of the most common exclusions in commercial insurance policies:
Property Damage Caused by Poor Maintenance
If your property sustained damage due to poor maintenance, it likely won’t be covered by your commercial insurance policy. For example, if a pipe bursts because you failed to properly winterize your plumbing, you would be responsible for any resulting damage. This exclusion exists to encourage business owners to take proper care of their property and to prevent them from filing claims for damage that could have been prevented.
Losses Caused by Flood or Earthquake
Commercial insurance policies typically exclude damages caused by floods and earthquakes. If you live in an area that’s prone to either of these natural disasters, you may want to purchase separate flood or earthquake insurance to protect your business in the event of any damage.
Criminal Acts Committed by Employees
If an employee commits a crime—such as an embezzlement or fraud—any resulting damages would not be covered by your commercial insurance policy. However, if you have fidelity bond insurance, it would cover losses caused by criminal acts committed by employees up to the limit of the bond. Fidelity bonds are typically only required for businesses that deal with large amounts of cash or securities, so most small businesses don’t need to worry about them.
Automobile Accidents Caused by Employees on Business Trips
If one of your employees gets into an automobile accident while on a business trip, any resulting damages will not be covered by your commercial insurance policy unless you have hired non-owned vehicle liability coverage. This type of coverage protects businesses from damages caused by employees who use their own vehicles for business purposes.
Contact Us Today
These are just a few of the most common exclusions in commercial insurance policies. To ensure you’re fully protected, it’s important to work with an experienced agent who can help you understand the details of your policy. At Allen & Associates Insurance Inc in Albany, OR, we’re here to help answer any questions you may have about your commercial insurance policy. Give us a call today.