What are the business owner policy exclusions?

A business owner policy is characterized by a considerably comprehensive coverage: it is commonly written on an all-risk basis, unless the insured specifically requests the named-peril version of the policy by adding a special endorsement.

The all-risk coverage that is typical of a business owner policy means that any physical damage or loss is insured against, except for the causes-of-loss specifically excluded from the policy. Therefore, being aware of the business owner policy exclusions is just as important as knowing what its coverages are.

Business Owner Policy Exclusions

A list of the perils which are usually excluded from business owner policies:

• Weather conditions or smog;
• Pollution;
• Military actions;
• Water: flood, seepage of water, sewer backup, etc.
• Earthquakes;
• Operations executed by the government;
• Ordinance or law;
• Nuclear hazard;
• Explosion of machinery, such as engines or boilers;
• Collapse different than the instances that are covered by the business owner policy;
• Smoke or gas caused by different industrial activities;
• Power failure;
• Intentional illegal actions performed by the named insured;
• Criminal acts or fraud performed by the employees of the insured;
• Loss of market;
• Interruption or failure of artificially generated electric power supply, which occurs more than 100 miles out-with the insured property;
• Loss resulting from the failure of the business policy owner to take the necessary steps for preserving the insured property;
• Errors in the computer system of the insured business owner;
• Damage or loss caused by wear and tear;
• Loss caused by animals, insects, birds, etc.;
• Decay, rust or corrosion;
• Shrinking or expansion;
• Property loss resulting from faulty design, planning and development;
• Errors and omissions in computer operations;

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