Understanding what your policy excludes can save a lot of headaches in the event you have a claim. Every policy holder should read their policy from front to cover. You are buying a legal contract that will determine if an insurance company will pay for the damages resulting from a claim. Court cases have determined that ignorance is no excuse and that policy holders are responsible for reading and understanding their policies.
Here is a list of some common policy exclusions. Note that most exclusions can be covered by purchasing a separate and specific insurance policy:
Some Common Exclusions
Property:
- Earthquake - Including Earthquake Sprinkler Leakage
- Flood including sewer & drain backup.
- Electrical Arching, Mechanical Breakdown, Explosion
- Off Premises Power Failure
- Building Ordinance
- Demolition
- Loss to undamaged portion of building due to ordinance/law
General Liability:
- Absolute Pollution
- Employment Practices - Discrimination, Wrongful Discharge, Sexual Harassment
- Director's & Officer's Liability
- Professional Liability- Rendering or failure to render professional service.
- Punitive and/or Exemplary Damages
Business Auto:
- Rental Car Physical Damage
- Loss of Income due to down time
Truckers:
- Trailer Interchange
- Non-owned Auto - Private Passenger Vehicles
- Non-Trucking Use (Bobtail Coverage)
Umbrella:
