So, you've secured a general liability policy, thinking you're covered for every imaginable scenario. While general liability insurance is a robust shield for businesses, it's essential to decipher the fine print and understand what's excluded. Let's take a closer look at the exclusions on a general liability policy, because, after all, the devil is in the details.
1. Professional Services:
General liability policies typically exclude coverage for professional services. If your business involves providing advice, consultation, or any service that requires specialized skills, you might need a professional liability policy. This exclusion emphasizes the importance of having the right coverage for the nature of your operations.
2. Employee Injuries:
Injuries to your employees are usually covered by workers' compensation insurance rather than general liability. If an employee slips and falls on your premises, workers' comp steps in. General liability may cover third-party injuries but not those sustained by your own team.
3. Intentional Acts:
Acts committed with the intent to cause harm or damage are generally excluded. If your business intentionally causes harm or engages in illegal activities, don't expect your general liability policy to bail you out. It's a reminder to conduct your affairs ethically and within the bounds of the law.
4. Product Liability:
While general liability covers bodily injury and property damage caused by your products, it may exclude coverage for the products themselves. For product-specific issues, such as defects or malfunctions, a product liability policy is crucial.
5. Pollution:
Environmental damage caused by your business operations, like pollution or contamination, is commonly excluded. For businesses dealing with hazardous materials or environmentally sensitive operations, additional coverage such as environmental liability insurance is necessary.
6. Employee Discrimination and Harassment:
Claims related to employee discrimination, harassment, or wrongful termination typically fall outside the scope of general liability coverage. Companies should consider employment practices liability insurance (EPLI) for protection against such claims.
7. Cyber Liability:
In the digital age, the threat of cyberattacks looms large. General liability policies often exclude coverage for data breaches and cyber-related incidents. To safeguard your business against these evolving risks, a separate cyber liability policy is advisable.
In conclusion, understanding the exclusions on a general liability policy is pivotal for a comprehensive risk management strategy. While general liability forms a sturdy foundation, customizing your insurance portfolio to address specific risks ensures that your business remains resilient in the face of diverse challenges. Remember, informed decisions today can save you from unexpected liabilities tomorrow. Stay covered, stay secure!
