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What you need to know about business insurance exclusions

October 11, 2024 | Insurance 101

Are you familiar with business insurance exclusions? If you’re a business owner, it’s essential to know what they are since they affect whether an incident is covered by an insurance policy. 

Let’s explore the key concepts around business insurance exclusions, including what they are and how they impact your financial protection!

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Insurance exclusions: a definition 

What does the term “exclusion” mean in insurance? The International Risk Management Institute (IRMI) defines exclusions like this: “An exclusion is a provision of an insurance policy or bond referring to hazards, perils, circumstances, or property not covered by the policy.”

As a policyholder, it’s important to know that exclusions affect insurance coverage and to learn what the exclusions are for your policy. 

Be sure you understand your business insurance exclusions. 

Insurance companies strive to make business insurance exclusions clear and understandable. However, it’s essential that you’re proactive, too. 

There are a few steps you can take to ensure you and your employees understand what’s covered and excluded under your policy, including:

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    Get clarification when buying insurance. If you have questions about exclusions on a biBerk insurance policy, our licensed insurance experts are available to answer them. It’s especially important to talk with them (call 1-844-472-0967) if aspects of your business operations are unusual or unique. 
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    Be clear about your operations when applying. Exclusions are based, in part, on your business activities. So, it’s important to fill out your application clearly and completely. It’s also crucial to contact your insurer if your operations subsequently change in ways that are contrary to the information you originally provided. 
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    Read your policies carefully. Even if you get clarity on exclusions before buying your policies, you should still read them carefully, from start to finish. It may not be the most exciting read, but it’s crucial that you fully understand when, where, and how your insurance protects your business.
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    Educate employees about your coverage. Team members don’t need to read your insurance policies cover to cover or have an in-depth understanding of their features. But it’s a good idea to share highlights with them, like actions that aren’t covered and, consequently, should be strictly avoided. 
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    Review your policies periodically. Running a business can be hectic, so it’s easy to get a little fuzzy on your insurance policy details. Be sure to refresh your knowledge periodically so you don’t find yourself expecting an incident will be covered when, in fact, it’s excluded.

Again, if you have questions about exclusions on one of our policies, we’re happy to answer them!

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