Exceptions to the Rule: Calamities Business Insurance May Not Cover

Exceptions to the Rule: Calamities Business Insurance May Not Cover

Recent events across the country and the world have created lively discussions about business insurance and what may or what may not be covered. Much of this discussion is centered around Business Interruption Insurance.

It can be helpful to understand that virtually every form of insurance has exclusions, limitations, or will require a separate policy or additional rider on the main policy to cover certain circumstances. With homeowners’ insurance, for example, damage from flooding is not covered under the basic policy but must be secured separately. Likewise, backyard trampolines will likely not be covered by homeowners’ insurance and may even invalidate a homeowners’ insurance policy. There are other examples as well both in consumer and business insurance.

Business interruption insurance generally covers financial losses due to physical damage to a business or its inventory by a covered calamity like a fire or storm damage. In some cases, financial losses sustained from a loss of business due to a virus like COVID-19 would be exempt from coverage.

On the other hand, if a business has sustained damage due to rioting and is forced to close their doors because of the civil unrest, income losses under a business interruption policy may be covered. Not only would a business be covered under the vandalism provisions of a policy but because there were physical losses, business interruption coverage would also likely be in effect.

Some businesses may have been taken aback by the lack of coverage under some circumstances. It reinforces the importance of an occasional business insurance policy review. Businesses should carefully weigh the benefits of Business Interruption Insurance and understand its limitations. They should, at the very least, understand what is and isn’t covered under a policy and address any gaps they may be uneasy with ahead of time.

If it has been longer than you can remember since your business has had an insurance review, we invite you to contact one of our independent agents. They will discuss your specific risks, concerns and potential solutions. They will then go in search of a policy that suits your needs at a price that you can feel comfortable with. Contact us today.


Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Want to learn more about our blog writer?

Read more about KayLynn's background.

Click Here

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

The People You May Face From an Injury Liability Claim at Your Home

That List May Be Growing as Delivery Services Increase

“More” Which State Has the Most……

Which State Has the Most Public Airports? The Answer May Surprise You!

Valuable, Yet Lesser Known Business Insurance Options

You May Want to Consider These Business Insurance Options

Enhance Your Life with At-Home Buffets

Miss. Going Out to Your Neighborhood Buffet? Try the DIY Approach

What Would You Do? Awkward Driving Situations

A Four-Way Stop? Emergency Vehicle Approaching? Roundabout?

Trends in Rental Housing

Apartment Communities Are Offering More Than Ever…At a Price.

A Kennel of Famous Dogs in Art and Entertainment

In a World of Famous Canines, There are 3 Top Dogs

What Makes Your Business Unique?

What Are the Aspects of the way You Conduct Business That Make It Special?

The Missing Piece of the Puzzle (Life Insurance)

Are You Sure You Have All the Pieces?

The New Race for Horsepower

Engines Are Becoming More Powerful Than Ever