What Are the Exclusions on a General Liability Policy?

Learn What May be Excluded from Your Insurance Coverage in San Diego, CA

General liability insurance is intended to protect businesses in various circumstances. Just like auto insurance in San Diego, liability for business insurance has a number of things it doesn’t cover, which are called exclusions. Here are some of the most common exclusions found in general liability policies.

Other Insurance

General liability insurance policies typically exclude coverage for incidents covered under other insurance policies. For example, if an employee getting in a car accident is covered by the business’s automobile policy, this situation would be excluded from the general liability policy.

Faulty Products

A general liability insurance policy usually does provide coverage for injuries and damage caused by a business’s faulty product. However, the policies usually exclude coverage for things such as the costs to replace the product and lost revenues.

Professional Liability

A lawyer, doctor, accountant, or other licensed professional who makes a mistake leading to a lawsuit will likely not be covered under a general liability policy. Instead, that professional needs specialized coverage such as malpractice or errors and omissions insurance.

Catastrophes

Just as San Diego home insurance policies do, general liability policies exclude coverage for events such as acts of war, terrorism, and a meltdown at a nuclear power plant.

Discrimination

If a business is accused of discrimination in employment or unfair employment practices, it likely will not have coverage under its general liability policy. Just as with faulty products, a liability typically does not cover a business’s willful or negligent wrongdoing.

Independent Contractors

Many general liability policies exclude coverage for work done by independent contractors or subcontractors. It’s important to check your policy before hiring contractors so you know whether their work will be covered or not.

Liability coverage can give you peace of mind knowing your business is protected in many situations, but don’t let that keep you from understanding what might not be protected. If you have any questions about general liability or you’re looking for commercial insurance San Diego businesses trust, call one of American Tri-Star’s qualified agents today at 619-272-2100.