Commercial Water Damage Coverage

6/4/2018 (Permalink)

Many property losses experienced by business owners involve water damage caused by leaky pipes. Water can be very destructive whether it seeps from a loose fitting or gushes from a ruptured main. Fortunately, many types of water leaks are covered by a commercial property policy.

Most commercial property policies cover damage to covered property caused by any peril that isn't specifically excluded. 

While property policies contain a broad water exclusion, the exclusion applies mainly to flood and related perils like surface water, waves, mudflow, and the overflow of a body of water. It makes no mention of leaky pipes.

Property damage caused by water leaking from a broken pipe or appliance (such as a water heater) is generally covered under a property policy if the damage occurs suddenly.