What are common exclusions found in packaged commercial insurances?

Packaged commercial insurances typically include a variety of coverage options designed to protect businesses from a range of risks. However, there are several common exclusions that insurers generally apply to limit their liability.

The presence of exclusions like wear and tear, intentional acts, and acts of war reflects the insurer's intention to avoid covering predictable and controllable losses. Wear and tear is a natural occurrence that happens as equipment and property age, and it's not something an insurance policy is designed to cover. Intentional acts are excluded because insurance is meant to provide protection against unforeseen events; covering events that are deliberately caused would be against the principle of insurance. Acts of war are excluded to limit the potential for catastrophic losses that could arise from large-scale conflicts, which would be beyond the scope of typical insurance coverage.

While new technology risks and innovations, general maintenance costs, and damage caused by extreme sports might have specific considerations within various insurance policies, they do not fall into the category of standard exclusions commonly recognized in packaged commercial insurances. For example, coverage for new technologies might be specifically addressed rather than excluded, and general maintenance is typically regarded as an operational cost. Damage due to extreme sports might be better classified under specific liability coverage rather than as a blanket exclusion in commercial packages.