You likely already know that your insurance policies do not cover you for every eventual outcome.   In reality, some situations are insurable and others are not.  For example, it would be great if you could buy an insurance policy to cover you for gambling losses next time you go to Las Vegas, the horse races, or the nearby card room.  Insurance doesn’t exist or work for speculation because there is a potential gain from speculation but insurance is designed to indemnify which means to make one “whole”.

Another situation that insurance does not cover is criminal or intentional acts. Just think if one was able to buy insurance to cover them for crimes they are about to commit.  Imagine a cyber criminal being able to buy insurance for getting caught stealing from targeted individuals and businesses. Wouldn’t our society and civilization be in jeopardy?  Yes it would!  But yet, Cyber Insurance exists for individuals and businesses who may be the target of cyber crimes because protecting yourself from these attacks is a form of trying to remain whole or being indemnified as opposed to the cyber criminal who is trying to gain.

Soon after the Cover-19 pandemic blazed it’s way through our society, many businesses found out that their Business Interruption insurance did not include coverage for viruses.  Insurance is not available for situations like viruses that do not have a predictable outcome, so exclusions like this exist in insurance policies.  A fire or break-in to these businesses that caused an interruption in their business would be covered by the policy.  The business would be indemnified and eventually return to a normal operation once the property becomes repaired and restored.

If you ever have questions or concerns about what your policy covers and does not cover, we encourage you to call us.

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