Most Common Coverage Gaps in Your Commercial Property Insurance, common commercial property coverage exclusions

Most Common Coverage Gaps in Your Commercial Property Insurance

Watch out for these common commercial property coverage exclusions.

As a business owner, you recognize the importance of having the right commercial insurance coverages in place.  For instance, you probably have the right commercial property insurance for your company.  While you might assume that this coverage will protect you against every peril and damage event that comes your business’s way, this simply isn’t the case.  To ensure that you do not leave your company vulnerable, here are some of the most common commercial property coverage exclusions.

  • 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.

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.

Watch out for these common commercial property coverage exclusions.  Are you interested in learning more about business insurance in Plano, Texas?  If so, then contact the experts at Tri-Star Insurance/HUB International.  We are ready to assist you with all your coverage needs today.