THURSDAY, JULY 30, 2020
 General liability insurance is a common type of liability insurance used by businesses to protect against lawsuits. While it’s perhaps the most well-known liability insurance policies, most people don’t realize that, like other policies, general liability also has its limits and exclusions when it comes to coverage.
General liability insurance covers three main areas:
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Medical payments. Medical payments coverage provides a victim of bodily injury compensation for their medical expenses related to the injury.
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Personal or advertising injury. Personal or advertising injury coverage covers claims of libel, slander, copyright infringement and more.
General liability insurance does not cover criminal acts. If a claim reveals the business or its employees committed criminal acts, the incident will not be covered under this insurance.
Claims Not Covered Under Commercial General Liability
Employee injuries are not covered under general liability insurance. If an employee is injured on the job, they should be covered under the business’ workers compensation insurance. This insurance provides compensation for injuries an employee may sustain while working.
General liability insurance covers nonprofessional negligence, which means negligent acts by a business that are not directly related to a specialized or professionally offered service. Claims regarding a professional service that cause monetary loss for a client will not be covered under general liability insurance. Thankfully, these claims can be covered beneath a professional liability insurance policy.
Vehicle Related Accidents
If your business owns or uses vehicles for work purposes, it’s important to be aware of possible accidents. The business’ basic general liability insurance policy likely won’t cover an accident related to a commercial vehicle. You will need a comprehensive commercial auto insurance policy with its own liability insurance in order to cover vehicle accidents.
General liability insurance also will not cover claims from employees (previous, current or potential) concerning the business’ employment practices, such as discrimination, sexual harassment, wrongful firing or hiring, failure to promote and more. These type of claims generally come with an employment practices liability endorsement on a directors and officers (D&O) insurance policy.
While general liability is crucial for all businesses, it’s also important to consider the unique risks your business may face.
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