Business Insurance Coverage Limitations

​Business insurance coverage is primarily to provide financial protection for businesses against unexpected losses. However, it is essential to remember that there are limits to the coverage provided by a policy.

Unfortunately, many business owners become too dependent on their business insurance policy and often need to remember these limitations, thus putting their businesses in a vulnerable position. Therefore, understanding the scope and limitations of a business insurance policy is essential to ensure that you are adequately protected.

What is a Business Insurance Policy?
Business insurance is a type of coverage designed to protect businesses from losses due to unexpected events. Business insurance typically covers property damage, liability, and legal costs that may arise from accidents, cyberattacks, lawsuits, or other unforeseen circumstances. Each policy will vary regarding the specific coverage types, how much coverage is provided, and the associated premiums.

What Are the Coverage Limits of Your Business Insurance?
Generally, an insurance policy covers a specified amount of money in the event of a claim. Here are some common things that are not included in your business insurance policy:

1. Professional Liability
   Professional liability coverage is not included in a standard business insurance policy and must be purchased separately. This type of coverage protects businesses from claims arising from negligence or errors.
   
   
2. Employment Practices Liability
   Another critical limitation of a business insurance policy is that it does not provide protection against employment practices liability claims, such as wrongful termination, sexual harassment, discrimination, and wage & hour violations.
   
   
3. Cyber Liability
   Cyber liability coverage is also excluded from a standard business insurance policy and must be purchased separately. This coverage provides financial protection for businesses against cyber-attacks, data breaches, and other cyber-related losses.
   
   
4. Vehicle Insurance
   Vehicle or auto insurance is not a part of standard business insurance policies and must be bought independently. This kind of coverage shields businesses from losses resulting from accidents with company vehicles, giving you peace of mind to focus on other areas of your enterprise.
   
   
5. Business Interruption Insurance
   Business interruption insurance safeguards businesses from consequential losses caused by property damage. On the other hand, a typical general liability policy only covers costs related to replacing damaged goods.

Conclusion
Understanding the scope and limitations of your business insurance policy is essential for ensuring that you are adequately protected.

At McClain Matthews Insurance, we put our clients first by offering them policies that they can afford. Insurance is a necessity nowadays, and we're here to help you. Learn more about our products and services by calling our agency at (317) 298-7500. You can also request a free quote by CLICKING HERE. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!