A common question among business owners looking at insuring their company is; what types of liability aren’t covered by my general business liability insurance policy?
General liability insurance is the most prevalent form of business liability insurance. These policies are designed to protect your business against occurrences where someone alleges they were injured or their property was damaged as a result of your company’s negligence.
Your general liability insurance excludes some types of liability coverage, Workers Compensation, professional liability, liability related to operating an automobile or truck, and corporate directors and officer’s liability. These liabilities are covered by other specially created policies to protect your specific business.
Most general liability policies will also exclude coverage against claims of pollution. Businesses using toxic materials in the manufacturing process or that store or transport them must purchase a special environmental liability policy. Many businesses keep gasoline on the premises for their own use, but because storage tanks can leak over time, allowing gasoline to seep into wells and other water supplies, federal law requires all tank owners to have insurance or show some other means of paying for potential claims. Also excluded are claims resulting from damage to the property of others in the business owner’s care, custody and control. This is because coverage for such damage is covered under property policies. Talk about chemicals and usage as well as storage and transportation in detail with your agent or broker.
Any products produced or sold are generally not covered by a general liability policy. Product Liability insurance is sold as a separate coverage.
The most common exclusion for the typical general liability insurance policy is claims of professional negligence or Errors & Omissions. If damage resulted from serious negligence on the part of a client or an employee, your general liability insurance will not cover the suit. In this instance, professional liability insurance, also known as Errors & Omissions insurance, will cover a claim of negligence.
Review your liability coverage in detail with your licensed insurance professional. Take the time to understand what is covered, and most important, what’s not.
For a quick, free quote, click here, or call 1-877-907-5267 to speak with one of our specialists to learn more about what your business needs in terms of general business liability coverage.