Will Commercial Insurance Cover Arson?

One fire can easily lead to a business owner having to shutter their doors. It can destroy inventory and cause thousands in damages. In some cases, commercial insurance in Scotia, NY may be able to help. 

Covered Events

Many policies have a list of covered events. These are situations in which your policy will provide coverage. In most cases, arson is considered a covered event depending on who committed the crime and a few other factors. It’s important to speak with an agent at DePaulo Agency to learn more about covered perils and your policy. 

Specific Exclusions

Policies often list certain exclusions. For example, policies won’t cover crimes committed by the business owner. Some specifically exclude crimes committed by employees or former employees. Acts of terror or crimes committed during riots may also be excluded. This varies by company, so it’s important to read the fine print in your policy. 

Type of Insurance

Most commercial policies will cover arson damage to the building under property coverage. However, you may need additional types of coverage to ensure everything’s covered. Liability coverage may cover lawsuits or medical expenses. If employees are injured, you’ll need workers’ compensation to cover their lost wages. 

Additional types of coverage may cover lost inventory. Business interruption coverage can help pay lost wages and cover expenses while your business is closed for repairs, ensuring you can reopen later instead of being forced to file for bankruptcy. 

It’s important to work with an agent here at DePaulo Agency to make sure you have adequate coverage before an accident happens. We’ll take the time to review your policy to make sure you understand everything. Contact us today. We’re currently serving the Scotia, NY area.