1. purposeful activities: In general, business insurance policies do not cover purposeful acts like theft or fraud. For instance, you might not be protected if an employee steals from your company on purpose.
2. Workplace injuries It’s crucial to understand that while workers’ compensation insurance covers accidents that happen on the job, these policies do not cover accidents that happen off the job or that are the result of an employee’s own fault.
3. Cyberattacks: A lot of common business insurance policies don’t cover damages brought on by cyberattacks like ransomware or data breaches. Consider buying cyber liability insurance to safeguard against these kinds of risks if your company gathers or stores sensitive data.
4. Flood damage: Damage brought on by floods is typically not covered by commercial insurance policies. It’s crucial to buy a separate flood insurance policy if your company is situated in a flood-prone area in order to safeguard your assets and property.
You might be protected if you’re operating someone else’s vehicle while they have insurance. This isn’t always the case, though. To find out what the policy covers, it’s crucial to contact the car owner’s insurance provider. You may need to buy non-owner auto insurance to safeguard yourself in the event of an accident if the owner’s policy does not include you as a driver.
The named insured, or company that purchased the insurance, is normally covered by a Commercial General Liability (CGL) coverage. However, if someone is working for the company as an employee, volunteer, or independent contractor, they may also be covered by the policy. Reviewing your CGL coverage in detail can help you determine who is and is not covered by the policy.
As a result, knowing what a company insurance policy does not cover is just as crucial as knowing what it does. You can take action to safeguard your company from unforeseen losses and liabilities by looking for coverage gaps. Additionally, it’s critical to comprehend who is protected and under what conditions whether you drive someone else’s vehicle or have a CGL coverage.