As a business owner, you may have heard about general liability insurance, which is designed to protect your business against claims and lawsuits. However, it’s important to understand that this type of insurance does not cover every possible type of claim or incident. In this article, we will discuss some of the types of claims that are not covered under general liability insurance.
Before we delve into the details, let’s take a moment to define general liability insurance. This type of insurance provides coverage for claims related to bodily injury, property damage, and personal injury, as well as advertising injury. It can also cover the costs of legal defense and settlement or judgment if your business is found liable for damages. However, there are certain types of claims that are not covered, and it’s important to be aware of them to ensure that you have the right type of insurance coverage for your business.
Professional liability, also known as errors and omissions (E&O) insurance, is designed to protect businesses that provide professional services against claims of negligence, errors, or omissions. This type of insurance is particularly important for businesses that provide advice, consulting, or other specialized services. General liability insurance does not cover professional liability claims, so it’s important to have both types of insurance coverage to protect your business against all possible risks.
Employee Injuries or Illnesses
General liability insurance does not cover claims related to employee injuries or illnesses. Instead, businesses are required to have workers’ compensation insurance to provide coverage for these types of claims. Workers’ compensation insurance provides benefits to employees who are injured or become ill as a result of their work. It covers medical expenses, lost wages, disability benefits, and death benefits, among other things. It is important to note that workers’ compensation insurance is required by law in most states, so it’s essential to have this type of insurance coverage in place for your employees.
General liability insurance does not cover claims related to intentional acts, such as fraud, theft, or assault. If a business owner or employee intentionally causes harm to another person or property, this type of claim would not be covered by general liability insurance. It’s important to note that intentional acts are not only unethical but can also result in criminal charges and civil lawsuits, which can have serious consequences for businesses.
General liability insurance does not cover claims related to environmental damage or pollution. Businesses that operate in industries that involve hazardous materials, waste disposal, or other environmental risks should consider purchasing environmental liability insurance. This type of insurance provides coverage for claims related to pollution, contamination, and other environmental risks, and can help businesses protect themselves against the financial and reputational damage that can result from environmental incidents.
General liability insurance is an essential type of insurance coverage for businesses, but it’s important to understand that it does not cover every possible type of claim or incident. By being aware of the types of claims that are not covered by general liability insurance, businesses can take steps to ensure that they have the right type of insurance coverage to protect themselves against all possible risks. Whether it’s professional liability, workers’ compensation, or environmental liability insurance, businesses should work with their insurance provider to identify the types of insurance coverage that are most important for their specific needs.