When it comes to your small business insurance, are you aware of the exclusions your commercial package policy has? It’s imperative you inform yourself and understand what’s excluded and what’s not.
While a commercial package policy covers many basic risk exposures small businesses face, you should know what is excluded to ensure your business has proper coverage.
What is a Commercial Package Policy?
A commercial package policy is an insurance package for small businesses that cover general liability insurance and commercial property insurance.
Choosing What’s Best For Your Business
When it comes to selecting what type of policy is best for your business you have two options: all-risk policy or named peril policy.
If your commercial package policy is written as an all-risk policy, your business is covered for all exposures except against losses that are caused by something specifically excluded in the policy. Simply put, if it isn’t listed, it most likely isn’t covered.
In contrast, with a named peril policy this coverage only covers specific losses that are listed on the policy; i.e. fire, lightning, explosion. It’s important to note that often, water damage is excluded from a named perils policy.
Common Exclusions You Need To Know About
There are some coverages that that may not be included in your commercial package policy. You may want to speak with your insurance broker to see if adding one of these additional coverages would be beneficial. For example, these may not be included in your package: cyber liability, terrorism, planning, or development, and the coverage for loss due to mechanical or electrical breakdown of nearly any type of equipment, including photocopiers and computers.