What’s Not Covered Under General Liability

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As a small business owner, you probably are aware of the risks involved in business and aim to do everything possible to protect your venture from any unforeseen circumstances. One of the best, and most common, ways to do this is to get insurance for the business. General Liability insurance, in particular, is one of the common insurance coverages small businesses go for.

What is Covered

General Liability insurance protects business owners from third party claims of bodily injury and property damage. It helps to cover the cost of medical attention and damages to property during the course of business. Should a business operation lead to you being sued in such a case, the insurance policy deals with the costs of getting legal defense. It can also take care of settlements or judgments that may come up from the case. For businesses that could be sued for libel, slander or copyright violation, a general liability insurance policy can provide coverage as well.

What is Not Covered

A general liability policy covers many aspects of operating your business, but it’s dangerous to conclude that it covers 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. Imagine 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 liquid milk but the products you delivered were expired. Should this client actually sue you, a general liability insurance policy will not cover you.

Another area a general liability insurance policy will not cover is injury to employees of a business. Imagine 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 a workers’ compensation insurance policy to help in such a situation.

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 business. 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.

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