What General Liability Insurance Doesn’t Cover

General liability insurance is a crucial financial safeguard for businesses of all sizes and sectors. This coverage can offer protection against various third-party claims, including bodily injury, property damage and advertising injury. However, general liability insurance does not cover every potential risk your business might face.

General Liability Exclusions

General liability insurance typically excludes coverage for the following incidents:

• Employee injuries and illnesses—General liability insurance does not cover injuries or illnesses sustained by your employees while on the job. For these situations, your business needs workers’ compensation insurance.
• Auto accidents—If your employees are involved in accidents while driving company vehicles, general liability insurance won’t cover the damages. Commercial auto insurance is required for such incidents.
• Damage to business property—Any damage to your own business property, such as buildings, equipment or inventory, is not covered under general liability insurance. Commercial property insurance is necessary to protect against these losses.
• Professional errors—Mistakes made amid your company’s professional services, such as errors in consulting, accounting or legal advice, are not covered by general liability insurance. Professional liability insurance is needed to cover these types of claims.
• Intentional acts—Any illegal or intentional acts committed by your employees, such as fraud or theft, are excluded from general liability coverage. Commercial crime insurance may offer protection against these risks.
• Liquor liability—If your business serves alcohol, liquor liability insurance is required to cover claims stemming from the actions of intoxicated patrons (e.g., drunk driving incidents). General liability insurance does not apply to these situations.

Learn More

For insurance near you, contact Variety Insurance Agency.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.