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;
- Military actions;
- Water: flood, seepage of water, sewer backup, etc.
- 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;
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