While general liability insurance protects businesses from many risks, it does not cover everything. Understanding the exclusions in a liability policy can help business owners avoid gaps in coverage.
Employee Injuries
General liability insurance does not cover employee injuries.
Instead, businesses need Workers’ Compensation Insurance to cover:
- Workplace injuries
- Medical treatment
- Lost wages
Professional Mistakes
If your business provides professional advice or services, errors may not be covered by general liability insurance.
These claims are usually covered by Professional Liability Insurance, also called Errors and Omissions Insurance.
Example:
An accountant makes a financial error that costs a client money.
Damage to Your Business Property
General liability insurance does not cover damage to your own business property.
To protect your business equipment, inventory, and building, you may need Commercial Property Insurance.
Employee Theft
If an employee steals money or property from your business, general liability insurance typically will not cover the loss.
Businesses may need Crime Insurance for this type of protection.
Auto Accidents
If a company vehicle is involved in an accident, general liability insurance does not apply.
Instead, businesses need Commercial Auto Insurance to cover vehicles used for business purposes.
Intentional Acts
Insurance policies generally do not cover intentional harm or illegal activities.
Claims involving fraud or intentional damage are excluded.
Why Businesses Need Multiple Types of Coverage
Because general liability insurance does not cover every risk, many businesses combine coverage into a Business Owner’s Policy (BOP) or add additional policies such as:
- Workers compensation
- Commercial auto
- Professional liability
- Property insurance
An insurance professional can help design a policy that protects your business from multiple risks.
Get Help Finding the Right Coverage
If you have questions about liability insurance, the team at Upstate’s Choice Insurance can help you review your coverage options.
Call 864-845-7500 today to request a free quote for general liability insurance.