Understanding Exclusions to Your General Liability Insurance Policy

General liability insurance can be essential for financially protecting businesses against claims of bodily injury, property damage and other liabilities. However, it’s crucial to understand that not all incidents are covered.

General Liability Insurance Exclusions

The following are some common exclusions to be aware of:

• Intentional acts—Any damage or injury resulting from intentional actions is typically excluded. For example, if an employee deliberately damages property, the insurance will not cover the costs.

• Contractual liability—When a business assumes liability through a contract, such as agreeing to be responsible for another party’s actions, this is generally not covered. Construction companies often face this exclusion when they take on liability for a project.

• Liquor liability—Businesses involved in manufacturing, selling or serving alcohol are excluded from coverage for alcohol-related incidents. Separate liquor liability insurance is required for these situations.

• Workers’ compensation—Injuries to employees are not covered under general liability insurance. Instead, workers’ compensation insurance is necessary to cover employee injuries.

• Professional services—Claims arising from professional services, such as those provided by doctors, lawyers or consultants, are excluded. Professional liability insurance is needed to cover these risks.

• Pollution—Damage or injury caused by pollution or environmental contamination is typically excluded. Businesses with potential pollution risks should consider environmental liability insurance.

• Auto-related incidents—Any claims related to the use of vehicles are excluded from general liability policies. Businesses must have commercial auto insurance to cover these risks.

Understanding these exclusions helps businesses identify gaps in coverage and seek additional policies. Always review your policy details and consult with your insurance provider to fully understand your coverage and exclusions.

Learn More

For general liability insurance near you, contact Guardian Insurance.

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.