Commercial insurance is vital for any business venture in Santa Clarita, CA. It safeguards business entities against liabilities culminating in their daily activities like an injury at the workplace, property damage, and prevailing damage to reputation. Generally, commercial insurance covers mishaps and accidents which can transpire during ongoing business operations. Nonetheless, it’s also prudent to understand what commercial insurance excludes. With this in mind, QuoteBroker Insurance Services is here to share standard commercial insurance exclusions.
When a given business entity engages in manufacturing, selling, and serving alcohol, it’s exempted from getting protection as there is no liquor liability. Therefore, a company must obtain a separate policy underwritten explicitly for the liquor risk.
Expected or intended damage
This risk is excluded when a given action is undertaken intentionally, and there is a high expectation of damage or injury from the activity. Commercial insurance won’t cushion you when you consciously engage in an action that is susceptible to a claim. For example, when you try to maneuver a forklift through a parking lot to load materials, you accidentally damage a motorcycle blocking your path.
Breach of contract
Your insurer is likely to dishonor any claim arising from a breach of contract. So, honor your contracts to avoid financial losses.
When a given company releases contaminants due to its operations, there will be no compensation against such a claim. This exclusion stands irrespective of whether the pollutants get emitted gradually or abruptly.
Flooding isn’t covered by typical commercial insurance. However, you can purchase stand-alone insurance from private carriers or the National Flood Insurance Program (NFIP).
Are you a business owner in Santa Clarita, CA searching for commercial insurance? Please get in touch with QuoteBroker Insurance Services. We will help you navigate commercial insurance by educating you on what it covers and excludes.