Claims Not Typically Covered by Commercial Property Insurance

Commercial property insurance is a valuable asset for businesses of all sizes. It can help to protect your property from a variety of risks, such as fire, theft, and vandalism. However, it is important to note that not all claims are covered by commercial property insurance.

Here are some of the most common claims that are not typically covered by commercial property insurance:

Earthquakes and floods: These natural disasters can cause significant damage to property, but they are also relatively rare, so insurance companies typically charge high premiums for coverage. If you live in an area that is prone to earthquakes or floods, you may want to purchase separate policies for these perils.
Pollution: Commercial property insurance policies typically exclude coverage for pollution damage. This includes damage caused by hazardous materials, such as chemicals and oils. If you own a business that handles hazardous materials, you may need to purchase separate pollution insurance coverage.
Wear and tear: Commercial property insurance does not cover damage caused by wear and tear. This includes damage that is caused by the normal use and aging of property. For example, if your roof leaks due to age, your commercial property insurance policy will not cover the cost of repairs.
Intentional damage: Commercial property insurance does not cover damage that is caused intentionally by the policyholder or their employees. For example, if your employee sets fire to your business, your commercial property insurance policy will not cover the cost of repairs.

In addition to the above, there are a number of other claims that may not be covered by commercial property insurance policies, depending on the specific policy language. It is important to read your policy carefully to understand what is and is not covered.

Here are some tips for avoiding claims that are not typically covered by commercial property insurance:

Regularly inspect and maintain your property: This will help to identify and address any potential problems before they cause major damage.
Implement security measures to protect your property from theft and vandalism: This may include installing security cameras, alarm systems, and fencing.
Purchase separate coverage for earthquake and flood insurance: If you live in an area that is prone to these natural disasters, it is important to have adequate coverage in place.
Purchase separate coverage for pollution insurance: If your business handles hazardous materials, it is important to have adequate coverage in place to protect against pollution damage.

By following these tips, you can help to avoid claims that are not typically covered by commercial property insurance. However, it is important to note that even the best prevention measures cannot guarantee that you will never have a claim. If you do experience a loss, it is important to contact your insurance agent or broker immediately to file a claim.

Here is a real-world example of a claim that was not covered by commercial property insurance:

A business owner was operating a restaurant in an area that was prone to flooding. The owner did not have flood insurance coverage, but they did have commercial property insurance coverage. One day, a heavy rain storm caused the river to overflow, flooding the restaurant. The restaurant owner sustained significant damage to their property and business. However, their commercial property insurance policy did not cover flood damage, so they were responsible for the cost of repairs out of their own pocket.

This example illustrates the importance of understanding what is and is not covered by your commercial property insurance policy. If you have any questions, be sure to contact your insurance agent or broker.