What is Not Covered
A general liability policy covers many aspects of operating your business, but it’s dangerous to conclude that it includes everything. With regards to property damage, it only covers third-parties. This means it will take care of the damage your business causes another person’s property; not your own.
General liability insurance will often not help you out if the damage your business causes is a result of your carelessness.
You own and manage a grocery supplier. You receive a huge order from a client which you are to deliver urgently. You do everything as expected and deliver right on time. The next day, you receive a call from the client upset because amongst the items she ordered was milk, but the products you delivered were expired. Should this client sue you, a general liability insurance policy will not cover you.
Another area a general liability insurance policy will not cover is an injury to employees of a business.
You own and run a pizza delivery business, and on an unfortunate day, one of your delivery boys falls as he rushes down the staircase of your business premises. He was rushing off to make a delivery. He sustains an ankle injury and other bruises around his knees. You may be tempted to rush to your general liability insurer. Unfortunately, they will not be able to help out in such a situation. You would want Workers’ Compensation insurance policy to help in such a case.
It’s important to be careful and understand the limitations of coverage when shopping for insurance policies for your business. A general liability insurance policy is great for many small businesses, but it may not cover every aspect of the company. It will, therefore, be wise for business owners to complement their general liability insurance policies with other coverages that suit the different business risks they are exposed to.