Which items are generally excluded from commercial property coverage?

In commercial property coverage, certain items are typically excluded due to their nature or specific risks associated with them. Currency, animals, and contraband fall into this excluded category.

Currency is often excluded because it poses a high risk for loss or theft, and coverage can lead to complications in valuation. Animals are generally excluded not only because they can have varying values and might be subject to different types of insurance, but also because their care, handling, and potential for injury or disease create unique challenges that are typically addressed separately in specialized insurance policies. Contraband, being illegal items, cannot be insured because it would be against public policy to provide coverage for something that is illegal or illicit.

This exclusion helps insurers mitigate risk by avoiding coverage of items that could lead to disputes over values or legality, thereby simplifying claims processes and underwriting. Understanding these exclusions is crucial for businesses to assess their risk and determine the appropriate coverage for their assets.