What Does Commercial General Liability Insurance Not Include?

Commercial general liability (CGL) policies can provide financial protection for a company in the event of accidental damage or legal costs associated with a lawsuit. However, it is important to be aware that CGL does not cover intentional damage, accidents involving cars, aircraft, or boats, or any other type of incident. General liability insurance offers a wide range of potential safeguards, but there are some things it does not cover. These include business-related car accidents, employee injuries and illnesses, damage to your company's property, errors in professional services, claims that exceed your policy limit, and illegal acts committed by you or your employees.

Relying solely on general liability insurance can leave you exposed to costly damages if you or an employee cause damage to your property. The cost of coverage varies depending on the size of the business, industry, location, and amount of coverage needed. A general liability policy is an essential form of coverage for small businesses, but it does not provide protection against theft, vandalism, fire, adverse weather conditions, or lost income. Additionally, it does not cover any bodily or material injury caused by an insured person who has assumed responsibility for another in a contract or agreement. Corporate liability insurance is not required by law but is highly recommended to protect against financial losses. For professional errors, you will need to purchase professional liability insurance.

If the named insured person is involved in manufacturing, selling, serving, or supplying alcohol, CGL excludes any liability for bodily injury or property damage caused by alcohol. Workers' compensation and work-related liability insurance are also excluded from CGL policies and must be purchased separately. Not having general liability insurance can lead to lost customers as many will not do business with companies that do not have this type of coverage. It is important to research the best insurance companies and find the right coverage that fits your needs. If you use a tractor for work purposes and it causes damage to your property, this will not be covered by general liability insurance.

Coverage C provides medical payments for people injured at the insured's premises or due to their business operations regardless of fault. If you have a fleet of vehicles used for business purposes or use your personal vehicle for work purposes, you will need commercial auto insurance to cover any vehicle accidents. Your personal car insurance may not cover damages that occur while your vehicle is being used for work. It is essential to understand what commercial general liability insurance does not cover in order to ensure that your business is adequately protected from potential risks. Knowing what is excluded from CGL policies can help you make informed decisions about the type and amount of coverage you need.

Carl Somilleda
Carl Somilleda

General beer ninja. Hardcore social media guru. Devoted beer guru. Hardcore beer geek. Hipster-friendly web aficionado.