Common Exclusions in General Liability Insurance Policies

General liability insurance is a must-have safety net for businesses, shielding them from the financial fallout of claims like bodily injury, property damage or advertising mishaps; however, not everything is covered. Like any insurance policy, it comes with a list of exclusions. Knowing what’s not covered is just as important as knowing what is, so businesses aren’t caught off guard when the unexpected happens.

General Liability Insurance Exclusions

Below are common exclusions in general liability policies:

• Intentional acts. If a business or its employees intentionally cause harm or damage, the policy will not provide coverage. This includes acts of fraud, assault or vandalism.

• Contractual liability. While general liability insurance may cover some liabilities assumed under a contract, it typically excludes those not part of the standard business risk unless specifically endorsed.

• Professional services. If a business provides professional advice or services, such as legal, medical or consulting work, claims arising from errors or omissions in those services are not covered under general liability. Instead, a separate professional liability policy is needed.

• Employee injuries. These are typically covered under workers’ compensation insurance.

• Automobile-related incidents. These are not covered and require commercial auto insurance.

• Pollution and environmental damage. These are generally excluded due to the high risk and potential cost. Businesses involved in industries with environmental exposure should consider environmental liability insurance.

Learn More

Understanding these and other exclusions can help businesses identify coverage gaps and seek additional policies or endorsements. For general liability insurance near you, contact Kiero Insurance & Multiservices, LLC.

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.