What are typical exclusions found in commercial property policies?

In commercial property policies, typical exclusions often include wear and tear, territorial limitations, and certain high-risk activities.

Wear and tear refers to the gradual deterioration of property due to normal use over time, which is considered a maintenance issue rather than an insurable event. Territorial limitations may restrict coverage based on specific locations where risks are present or where the policy applies. High-risk activities, which could lead to greater potential liabilities, may also be specifically excluded to manage risk within the policy.

The other provided choices include exclusions that may apply in some contexts, but they do not accurately reflect the most common exclusions in commercial property insurance. Natural disasters and fire damage, for instance, might be covered under specific circumstances with additional endorsements. Employee theft is often covered by separate fidelity bonds or crime insurance rather than being a standard exclusion from property policies. While vandalism might be covered, it often depends on the circumstances of the damage. Acts of terrorism and glass breakage can also vary based on the individual policy's wording or the presence of specific riders.