What Are Some Common Exclusions In Commercial Insurance Policies?

Insurance plans for businesses or property are designed to compensate owners for financial losses sustained as a result of property damage. They often include a number of exceptions to the rule. Understanding what the policy does not cover is equally as vital as knowing what they cover. Consult with us at Ed Thompson Insurance Agency in Omaha, NE for expert insurance advice. 

Commercial Insurance Exclusion: What It Entails

An insurance policy exclusion details a kind of loss for which the policy doesn’t provide coverage. The law demands that exclusions be specified in a way that is explicit and detailed. 

Every insurance policy comes with a set of features and restrictions. The kinds of businesses that are excluded might also change depending on where you live. Most insurance firms don’t offer coverage that results from things such as water damage, acts of war, kidnapping, and existing damage. 

In commercial insurance contracts, "exclusions or carve-outs" remove coverage for particular types of property, risks, conditions, or hazards. Exclusions are a tool that insurance companies use to exclude coverage for risks that they do not wish to insure. 

Because they cannot be prevented, certain dangers, like regular deterioration, aren’t covered by insurance policies. These include normal wear and tear. The ability to mitigate risk is provided to the policyholder, who is responsible for performing conducting routine maintenance and upkeep. Commercial insurance exclusions include: 

• Contractual Liability
• Liquor Liability
• Pollution
• Aircraft, Autos, and Watercraft
• Intentional Acts
• Contractual Liability

The higher the level of protection provided by the policy, the greater the risk posed to the insurance provider, and the higher the premium required to pay for the coverage. 

Give Us A Call

Most insurance policies prohibit coverage for any act or danger related to war or terror. You are required to carefully go over your policy before signing the document. Also, ask questions about exclusion issues. For expert insurance guidance in the greater Omaha, NE community, confer with Ed Thompson Insurance Agency.