Common Coverage Gaps for Businesses

Running a business comes with unique financial opportunities and risks. While most business owners understand the importance of insurance, many are surprised to learn that their current policies may leave them exposed to costly gaps. At Sanguinetti & Co. Insurance, Mark Twain Insurance Services, we believe that understanding these coverage gaps is the first step toward securing your business from unexpected setbacks.

What Does It Mean to Be Underinsured?

Being underinsured means your business insurance doesn’t fully cover the risks you face. This can happen if your coverage limits are too low or if certain exposures aren’t included in your policies. In many dynamic business environments, a small gap can lead to significant financial losses.

Common Coverage Gaps for Businesses

Our team often sees the following gaps when reviewing commercial insurance policies:

• Earthquake and flood coverage. Standard property insurance typically excludes damage from earthquakes and floods.
• Cyber liability. Many businesses rely on technology but lack coverage for data breaches, cyberattacks or loss of sensitive customer information.
• Employment practices liability. Claims related to wrongful termination, discrimination or harassment are not covered by general liability insurance.
• Business interruption. Not all policies include coverage for lost income if your business is forced to close temporarily due to a covered event.
• Equipment breakdown. Damage to essential equipment from mechanical failure or power surges is often not included in basic property policies.
• Professional liability. Service-based businesses may need additional security against claims of errors, omissions or negligence.

Why a Commercial Insurance Review Matters

Insurance needs can change as your business grows, and regulations evolve. Regularly reviewing your policies with a knowledgeable advisor helps make sure you’re not leaving your business exposed. Our team at Sanguinetti & Co. Insurance, Mark Twain Insurance Services specializes in identifying potential gaps and recommending solutions tailored to your unique risks.

We work closely with business owners to assess current coverage, explain potential exposures and design programs that offer comprehensive insurance. Our goal is to help you make informed decisions so you can focus on running your business with confidence. Contact us today to schedule a commercial insurance review and secure your business against unexpected risks.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.