What is Excluded from General Liability Insurance?

As a business owner, you’re probably used to taking risks. However, you’d never want to risk having the wrong insurance coverage to protect your assets. A general liability insurance policy is the most commonly purchased policy for business owners. Having the wrong coverage or none at all can cost you dearly. Here are some of the exclusions.

Damage to your product: Of course nobody plans on their product damaging a home or business, but it does happen sometimes. For example, if you install an appliance that combusts, your general liability policy would cover repair to the home or office; however, it would not include the replacement of the faulty appliance.

Damage to your work: If the work you do damages someone’s property, their property can be repaired under the policy, but your work cannot be covered. For example, if you construct a new home, and the roof over the garage caves in crushing the homeowner’s vehicle, their car could most likely be covered under your policy but not the roof itself, as that was your work.

Worker’s compensation: If an employee is injured on the job, the type of insurance for this matter is worker’s compensation policy. This is probably one of the most important coverage issues to understand in case an employee should be hurt on your job site.

Pollution: If your business involves transporting or producing chemicals, you’ll need to purchase a specific type of pollution insurance coverage. General liability will not cover any chemical seepage or spills.

Product recall or impaired property: Due to the costs that can be incurred with a product recall, general liability insurance does not cover this concern. Businesses that manufacture items like food or toys have the option of purchasing a special type of recall coverage instead.

For your business prosperity and peace of mind, be sure to check with your local insurance agency to make sure you have the proper coverage.

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