What’s Covered in a Standard Business Insurance Policy?

What is and What Isn’t Covered in a Standard Business Insurance Policy?

Operating a business requires handling different risks that may affect your operations and financial health. A standard business insurance policy may provide vital financial protection against several risks, but it’s important to be aware of what it covers and what it doesn’t.

What Does Business Insurance Cover?

A standard business insurance policy typically includes coverage for the following:

• General liability insurance may provide compensation if your business faces claims of copyright infringement, reputational harm, advertising injury, bodily injury and property damage.

• Commercial property insurance may cover buildings, equipment, inventory and other physical assets against losses caused by incidents such as fire, theft, lightning and wind.

• Business interruption insurance may help replace lost income if your business must temporarily close due to covered events.

• Professional liability insurance may cover negligence claims, errors or omissions in your professional services. It may also cover legal defense costs if your business faces lawsuits.

• Workers’ compensation insurance may cover medical expenses and lost wages for employees who suffer work-related injuries or illnesses.

• Directors and officers insurance may provide financial support to executives and board members facing business-related lawsuits.

• Commercial umbrella insurance may add liability coverage for claims exceeding the limits of other policies.

What Are Common Exclusions?

Standard business insurance policies generally exclude specific scenarios and risks. The following are a few of these common exclusions:

• Intentional damage or harm

• Fraudulent behavior

• Flood damage

• Earthquake damage

• Acts of terrorism or war

• Nuclear incidents

• Damage due to poor maintenance

Learn More

The agents at Foulcard Insurance Agency can explain your business insurance coverage options and help identify potential gaps in your policy. Contact us today to schedule a consultation.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.