Property Insurance Losses Not Covered In A Basic BOP

You already recognize the power of a good business property insurance policy. In our previous blog post concerning this topic, we discussed what losses were covered. In this post, we discuss causes of loss that aren’t normally covered.

What isn’t covered in my standard business owner policy (BOP) property insurance policy?

First, remember that just because it isn’t covered now, does not mean that you can not add additional coverage to your policy. In fact for a small additional premium you can custom design a policy that will fit your needs. For this very reason, it is imperative to communicate openly and honestly with your insurance agent, who’s goal is to protect everything that is important to you in your business.


Items not covered in a standard BOP property insurance policy

  • Wear and tear: Regular maintenance of your building and equipment is your responsibility, not the insurance company’s!
  • Floods: Talk to your agent about this if your business lies in a flooding zone. A separate policy can be added to your premium.
  • Earthquakes: Do you work in a recognized high-risk earthquake region? Then you might consider adding an earthquake policy to your plan.
  • Power failure (Except when it causes loss or damage to computers and electronic data)
  • Computer hardware or software failure
  • Robbery and burglary: Ask about additional coverage
  • Pollution
  • Changes in humidity or temperature
  • Missing property where there is no physical evidence to show what happened to the property: For example, you may note a material shortage found after taking inventory.
  • Nuclear reaction
  • War

Can you see why it is important to talk to your agent? Don’t assume everything is covered.

Here are a few examples of property that isn’t covered by a property insurance policy

  • Outdoor fences and signs not attached to the building
  • Money, bullion, or securities
  • Land, water, growing crops, lawns, trees, shrubs or plants

Talk to your agent regarding additional coverage to protect these items. If you would like a property insurance professional to contact you with a free commercial property insurance quote contact today.