Commercial insurance in Lafayette, IN, isn’t always legally required. Business owners often need to obtain workers’ compensation and auto insurance to comply with state laws. Other policies are optional but highly recommended, as they cover things like property damage. However, there are a few exclusions to be aware of.
Employee Damage
Most insurance companies recognize that disgruntled employees may cause damage or that employee theft can be a serious issue. However, it’s up to the business owner to pursue legal action to recover damages caused by employees.
Intentional Damage
Any type of intentional damage is excluded from coverage. Causing damage to your business or inventory to file a claim is considered insurance fraud. Companies like Blevins Insurance Agency may require a police report to ensure you aren’t a suspect in certain situations, such as arson.
Certain Disasters
Every insurance policy provides coverage for damage caused by “covered perils.” This often includes common events such as lightning, fires, and certain natural disasters. However, other natural disasters are excluded and require additional coverage or coverage through another company. It’s common to see wildfires, earthquakes, tornadoes, and floods excluded.
Coverage Limits
Many companies exclude damages that exceed coverage limits. For example, if your inventory costs $150,000 to replace, but your policy only provides $100,000 in coverage, the company won’t pay for the additional $50,000 in inventory.
It’s important to create an itemized list of property, including inventory, and determine how much it will cost to replace them to ensure you have adequate coverage.
An agent at Blevins Insurance Agency can help you learn more about coverage limits and exclusions. We believe in being transparent with our clients. Contact us today to learn more. We’re currently serving the Lafayette, IN, area.
