As a business owner, it’s important to understand the different insurance policies available to you. One type of policy that is commonly purchased by businesses is commercial insurance. This policy can protect your business in the event that something goes wrong.
However, there are some common exclusions in commercial insurance policies that you should be aware of. Lucas Insurance Services Inc in Santa Clarita, CA can help you navigate this important coverage.
Here are some of the most common exclusions in commercial insurance policies:
Flooding is one of the most common natural disasters excluded from commercial insurance policies. This is because flooding can cause so much damage and be so expensive to fix that it would bankrupt most insurance companies if they had to cover it. If you live in an area prone to flooding such as Santa Clarita CA, getting a separate flood insurance policy from Lucas Insurance Services Inc is important to protect your business.
In many parts of the country, the wind is one of the most common causes of property damage. While your commercial policy will likely cover some wind damage, there are often limits or exclusions. For example, if a tree falls on your building as a result of high winds, your policy may only cover the cost of removing the tree, not repairing any damage to the building itself.
If you live in an area prone to earthquakes, you’ll need to purchase a separate earthquake insurance policy to be fully protected. This is because damage from earthquakes can be so extensive and expensive to repair that most commercial insurance policies exclude it.
If your business has to close for any reason, you may not be covered by your commercial insurance policy. This is because most policies only cover physical damage to property, not lost income. If you want coverage for business interruption, you’ll need to purchase a separate policy or add an endorsement to your existing policy.
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As you can see, there are a variety of exclusions that could be included in your commercial insurance policy. It’s important to talk to a professional agency like our team at Lucas Insurance Services Inc in Santa Clarita, CA, to make sure you are getting the best coverage for your business. Give us a call today, and let’s chat about your options.