Beyond the Basics: What’s Not Covered by General Liability Insurance?

While general liability insurance is an essential safeguard for businesses, it has limitations. Here’s an example: A marketing consultant is sued after their advice results in a client’s financial loss. Expecting their general liability insurance to cover the claim, they’re surprised to learn it doesn’t apply.

While critical for most businesses, general liability insurance doesn’t cover every type of risk. The following are some key areas it typically does not cover:

Professional Errors

If your business offers advice or services, mistakes or negligence aren’t covered. You’ll need professional liability insurance (also known as errors and omissions insurance) to protect against claims of inadequate work or faulty advice.

Employee Injuries

General liability can only cover third-party injuries. If an employee gets hurt on the job, workers’ compensation insurance is required to cover medical expenses and lost wages.

Cyberattacks and Data Breaches

In an increasingly digital world, cyber threats are a genuine concern for all enterprises. General liability won’t help if your systems are hacked. Instead, cyber liability insurance can help with breach response costs and similar situations.

Commercial Auto Accidents

You’ll need commercial auto insurance if your business owns or operates vehicles. General liability doesn’t extend to vehicle-related incidents, even among third parties.

Damage to Your Own Property

General liability may cover damage to others’ property, not your own. For that, you’ll need commercial property insurance.

Find a Reliable Insurance Solutions Provider

To truly safeguard your business, you need more than just the basics. Contact us today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.