Business Insurance Exclusions – What’s Not Covered?

Business insurance provides coverage for a wide range of natural disasters, including hurricanes, tornadoes and more. But business insurance doesn't cover everything, and there are major disasters standard business insurance policies won't cover.

Business Insurance Excludes Flood Damage

If your business suffers flood damage, business insurance will not cover the damage. A separate flood insurance policy must be purchased. To purchase a flood insurance policy, contact your business insurance agent or visit the National Flood Insurance Program for more information.

Even if your business is not located in a flood zone, it may be wise to consider flood insurance. Government flood maps may be slow to keep up with the latest developments, and climate is always changing.

Business Insurance Excludes Earthquake Damage

Business insurance excludes damage caused by earthquakes. If your business is located in an earthquake-prone area, you will need a separate earthquake insurance policy or commercial property earthquake endorsement to adequately protect your business.

Business Insurance Excludes Terrorist Attacks

If your business is damaged as a result of a terrorist attack, business insurance excludes coverage. Under the Terrorism Risk Insurance Act of 2002, businesses must purchase additional terrorism coverage to protect against losses due to terrorist attacks.

One exception is workers' compensation. Injuries and deaths due to terrorist attacks are covered, but business insurance excludes other losses due to terrorism.

Business Interruption Insurance

Business interruption insurance, which reimburses income lost during a business shutdown, applies only to perils covered under your business insurance policy. If your business is damaged or destroyed by a disaster that is not covered by your standard business insurance policy, business interruption insurance will not cover the losses. Learn more about Business Interruption Insurance.

If you want to protect your business, investing in a business insurance policy is a must. You can shop and compare business insurance quotes and learn more about business insurance exclusions in minutes with InsWeb.com.