As a business owner, it is important to protect your company from potential risks and liabilities that may arise. Business insurance policies are designed to provide a safety net for businesses, but they don’t cover everything. In this article, we will explore some of the things that business insurance policies typically don’t cover.
Before diving into what business insurance doesn’t cover, it’s important to understand what it does cover. Business insurance typically covers things like property damage, liability claims, employee injuries, and business interruption. However, there are several areas that are not covered by standard business insurance policies, and it’s important to be aware of them to ensure that your business is fully protected.
Intentional Acts
Business insurance policies typically don’t cover intentional acts. This means that if you or one of your employees intentionally causes harm to someone or their property, your insurance policy won’t cover the damages. Intentional acts include things like theft, fraud, and assault. If you are concerned about intentional acts, you may want to consider purchasing a separate liability policy that specifically covers these types of incidents.
Natural Disasters
While business insurance policies typically cover property damage, they often exclude coverage for natural disasters. This includes events like earthquakes, floods, and hurricanes. If you live in an area that is prone to natural disasters, it’s important to purchase separate insurance policies to cover these events. This may include flood insurance or earthquake insurance.
Cyber Attacks
Cyber attacks are becoming increasingly common, and they can be devastating for businesses. Unfortunately, many business insurance policies don’t cover losses resulting from cyber attacks. This includes things like data breaches, ransomware attacks, and phishing scams. If you are concerned about cyber attacks, it’s important to purchase a separate cyber insurance policy to protect your business.
Employee Dishonesty
While business insurance policies typically cover employee injuries, they often exclude coverage for employee dishonesty. This means that if one of your employees steals from your business, your insurance policy won’t cover the losses. If you are concerned about employee dishonesty, you may want to consider purchasing a fidelity bond. This type of insurance policy provides coverage for losses resulting from employee theft or fraud.
Conclusion
Business insurance policies are designed to protect businesses from potential risks and liabilities. While they provide a safety net for many things, they don’t cover everything. It’s important to be aware of what your policy does and doesn’t cover to ensure that your business is fully protected. If you have any concerns about areas that are not covered by your policy, it’s important to speak with your insurance agent to determine if additional coverage is necessary.
Remember, prevention is always better than cure. So, be proactive in protecting your business from potential risks and liabilities.