A vermin exclusion is a provision in property insurance policies indicating that no amount will be paid as indemnity for damages caused by pests, such as fleas, cockroaches, lice, bugs, and rats. Insurance companies generally do not consider pest infestation as a peril to insure, but rather as a part of property maintenance.
This exclusion presents some serious liability issues for property owners who have businesses on the property that engage in food distribution, rentals, or other operations likely to attract pests. Because vermin often spread beyond the area that first attracted them, it can result in many related issues, not to mention the cost and difficulty of eradicating them.
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