Understanding the Exclusions in GL Your Policy

What Your General Liability Insurance Doesn't Cover

When business owners think about general liability insurance, they often focus on what it covers: things like customer injuries or property damage. But just as important is understanding what your policy does not cover. These exclusions define the boundaries of your protection and knowing them helps prevent surprises when it matters most.

Here are some common exclusions found in general liability policies and why they matter.

1. Injuries to Employees

General liability covers injuries to customers and other third parties, not your own team. If an employee is hurt on the job, that is handled by workers' compensation, not your general liability policy. If your business doesn't carry workers' comp (whether by choice or exception), those injuries may not be covered at all.

2. Damage to Your Own Property

If your business damages its own tools, equipment, or building, general liability will not apply. These losses typically fall under commercial property policy.

3. Professional Mistakes

If your business provides advice, design services, or professional recommendations, general liability does not cover mistakes or oversight. You would need professional liability insurance to protect against those risks. Even if your business doesn't see itself as a 'professional services' firm, tasks like offering advice, training, or documentation can trigger this exclusion.

4. Intentional Acts

If someone at your business causes harm on purpose, general liability does not apply. Whether it is property damage or personal injury, intentional actions are excluded.

5. Contractual Liability

Signing a contract does not automatically mean your insurance will cover everything in it. Some limited contractual liability coverage may apply in specific situations, but many signed agreements include responsibilities that aren't covered by your general liability policy.

6. Pollution and Contamination

Most general liability policies exclude pollution-related incidents. Whether it is a slow chemical leak or a one-time spill, you may need a separate environmental policy to be protected.

Why These Exclusions Matter

Exclusions are not hidden traps. They help define what your policy is designed to do and where you may need additional protection. Understanding them helps you:

• Avoid unexpected claim denials
• Spot potential coverage gaps
• Choose the right policies for your risks

If you are unsure what your current policy includes or excludes, we can help.

At Sterling Meadows Insurance Agency, we take time to review your coverage with you, answer your questions, and make sure your business is protected where it counts.