When you buy a commercial insurance policy in New Jersey, you may discover that certain concerns are not addressed in the plan. Exclusions are often added to a policy to avoid any risks that the insurance provider feels are not necessary or that are simply an addition to the basic plan that you have purchased. You should always review a policy for exclusions before you determine that the plan is appropriate for your needs.
If you have a policy that protects the property of the company, then it is possible that you may have exclusions that prevent coverage in certain situations. Exclusions may include earthquake damage, flood damage or similar disasters that are not commonly covered unless you buy additional protection.
In the case of property, you can expect the exclusions to be clearly stated and easy to identify. Usually, a policy will explain the excluded situations because the exclusions are usually fewer than the situations that are covered.
When it is related to liability, there may be situations that are excluded from the policy. For example, a policy may exclude certain types of accidents or may exclude any injuries that result from an individual’s behavior. When an individual is purposely behaving in a risky manner, a slip and fall accident or similar situation may not be covered. There may be additional exclusions that apply based on the situation and the reason for the claim.
There are a variety of situations that are not covered by your commercial insurance policy. You should always take the time to identify those situations so that you can feel confident that your plan is appropriate. To learn more about exclusions on business insurance, contact us to talk to an agent.