Can Be Avoided With Proper Maintenance By Marianne Bonner, last updated on March 24, 2020.
Water leaks result in significant financial losses for numerous businesses. Water that seeps from a broken fitting or gushes from a clogged main can be very destructive.
While the typical burst pipe damage is covered by the commercial property policy, many losses related to water are not covered.
Water exclusions like those in the standard ISO Special Causes of Loss Form are found in a lot of commercial property policies.
There are three types of water damage that this form does not cover.
The water exclusion applies to damage caused by water that accumulates in a variety of ways, such as a flood, waves, mudflow, or water that backs up from a drain or sewer.
The exclusion is very broad because it is subject to the anti-concurrent causation language that appears at the beginning of the exclusions section.
