What are the business owner policy exclusions?


A business owner policy is characterized by a considerably comprehensive coverage: it is commonly written on an all-risk basis, unless the insured specifically requests the named-peril version of the policy by adding a special endorsement.

The all-risk coverage that is typical of a business owner policy means that any physical damage or loss is insured against, except for the causes-of-loss specifically excluded from the policy. Therefore, being aware of the business owner policy exclusions is just as important as knowing what its coverages are.

Business Owner Policy Exclusions

A list of the perils which are usually excluded from business owner policies:

  • Weather conditions or smog;
  • Pollution;
  • Military actions;
  • Water: flood, seepage of water, sewer backup, etc.
  • Earthquakes;
  • Operations executed by the government;
  • Ordinance or law;
  • Nuclear hazard;
  • Explosion of machinery, such as engines or boilers;
  • Collapse different than the instances that are covered by the business owner policy;
  • Smoke or gas caused by different industrial activities;
  • Power failure;
  • Intentional illegal actions performed by the named insured;
  • Criminal acts or fraud performed by the employees of the insured;
  • Loss of market;
  • Interruption or failure of artificially generated electric power supply, which occurs more than 100 miles out-with the insured property;
  • Loss resulting from the failure of the business policy owner to take the necessary steps for preserving the insured property;
  • Errors in the computer system of the insured business owner;
  • Damage or loss caused by wear and tear;
  • Loss caused by animals, insects, birds, etc.;
  • Decay, rust or corrosion;
  • Shrinking or expansion;
  • Property loss resulting from faulty design, planning and development;
  • Errors and omissions in computer operations;
Was this question and its answer useful?
Not a bit
  • Currently 5/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Very useful
Have a question about insurance? Ask the experts