What Are Common Exclusions in General Liability Insurance

General liability insurance is an essential part of risk management and loss control for many businesses. These policies, also known as commercial general liability insurance, can offer financial protection against many incidents and perils occurring in workplaces of all sizes and across various industries.

5 General Liability Insurance Exclusions to Know About

Specifically, payouts may help manage losses and expenses arising from claims of bodily injury, property damage and personal injury affecting third parties, such as customers, clients and guests. However, it’s crucial to understand that this coverage still has key limitations. Being aware of the following possible exclusions is essential:

1. Professional liability claims—General liability insurance does not cover claims and lawsuits should a client allege that you provided inadequate professional services, such as by offering inaccurate advice or missing deadlines. Instead, you’ll need professional liability insurance, also known as errors and omissions insurance.
2. Employee bodily harm—While general liability coverage may address bodily injuries affecting other parties, this does not include your own staff. If an employee is injured or develops a work-related illness, it’ll generally be up to your workers’ compensation insurance to provide financial aid.
3. Intentional acts—If your business or employees commit intentional acts that lead to other parties’ losses, such as assault, fraud or theft, your general liability coverage will likely be of no help.
4. Automobile accidents—If your business uses cars, trucks, vans or other motor vehicles for commercial purposes, general liability insurance won’t typically cover related accidents. Instead, you’ll need commercial auto insurance.
5. Pollution and environmental damage—General liability insurance typically excludes environmental damage or pollution-related issues. Separate environmental liability coverage may be necessary to account for such risks and exposures.

How to Address Exclusions

Understanding these exclusions can help your business avoid being caught off guard when a claim arises. Regularly review your policy with an insurance advisor and supplement it with additional coverage.

Contact Ayala Insurance Services in Glendale, AZ, to discuss this topic further and verify that you have sufficient coverage.

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.