What Isn’t Covered by Commercial Insurance

The business community in Dallas, TX has been growing at a reasonable rate, attracting more entrepreneurs and investors to set up shops in the area. Along with this development, more business owners realize the importance of insuring their businesses. And while that is a good thing, entrepreneurs have made the mistake of rushing to buy a policy, assuming that any risk or damage is covered by insurance. To make things easier, D&B Insurance Solutions explains what is not covered under commercial insurance.

A Loss From an Uninsured Business Operation

If you fail to inform your insurance agent about any new operation, insurance will not cover it when exposed to risk. For instance, say you expand your business outside your home or add another building for running operations. Failure to inform your insurance company of this new development can land you in trouble. If that new building is exposed to risk, and you have failed to notify your agent, then you will incur the cost of replacing or repairing whatever damage you suffer.

Intentional or Fraudulent Acts

Commercial insurance does not cover fraudulent or intentional acts that harm a third party. For instance, if a client sues you for defrauding them, and you go to court, insurance will not cover the legal fees or the compensation you are asked to pay by the court.

Certain Types of Natural Disasters

There are natural disasters not covered by commercial insurance. For instance, if you live in a flood-prone area, you should consider getting a separate flood policy. This is because if your building and contents inside are damaged by floods, you will have to pay from your pocket.

If you are shopping for commercial insurance in Dallas, TX, speak to one of our insurance agents at D&B Insurance Solutions. We are ready to offer guidance on what is covered by your insurance policy so that you are well-prepared for any risk.