What are the typical exclusions in Business Interruption Insurance?

Business Interruption Insurance policies often include specific exclusions that limit the coverage provided. These exclusions vary by policy and insurer.

Here are some common exclusions that are typically found in Business Interruption Insurance policies include:

Losses Due to Uncovered Perils: Business Interruption Insurance covers perils that are specifically listed in the policy. It typically excludes losses caused by perils not mentioned in the policy. For example, if the policy covers fires and earthquakes, any interruption caused by a flood would not be covered.

General Economic Conditions: Business Interruption Insurance does not cover financial losses due to general economic downturns, market fluctuations, or decreases in consumer demand.

War and Terrorism: Business Interruption Insurance typically excludes losses caused by war, acts of war, or acts of terrorism. However, separate terrorism insurance policies are available for this purpose.

Pandemics and Communicable Diseases: Many Business Interruption Insurance policies exclude losses related to pandemics, epidemics, or other communicable diseases.

Interruptions Due to Software or Data Issues: Disruptions resulting from software glitches, data breaches, or cyberattacks are often excluded from coverage. Businesses can obtain separate cyber insurance policies to address these risks.

Normal Routine Maintenance: Business Interruption Insurance typically does not cover disruptions due to planned, routine maintenance or repairs to the insured property. It is designed for unexpected and unforeseen events.