What Does General Liability Insurance Not Cover?

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What Does General Liability Insurance Not Cover?

General liability (GL) insurance is essential for protecting your business from third-party claims involving bodily injury, property damage, and legal defense. However, it does not cover everything. Below are the most common exclusions you need to be aware of:

1. Employee Injuries and Illnesses

GL insurance does not protect employees. If one of your workers gets injured on the job, that falls under workers’ compensation insurance.

2. Professional Errors or Advice

Mistakes in the services you provide—such as consulting, design, or legal advice—are not covered. These require professional liability or errors and omissions (E&O) insurance.

3. Damage to Your Own Property

General liability only protects you if you damage someone else’s property. To cover your own building, inventory, or equipment, you need commercial property insurance.

4. Business-Owned Vehicles

Any vehicle used primarily for business needs to be covered under commercial auto insurance. GL policies exclude auto-related incidents.

5. Intentional or Criminal Acts

Deliberate acts, such as vandalism or fraud, are not covered—only accidental incidents qualify for general liability protection.

6. Pollution and Environmental Damage

If your business causes pollution or environmental harm, GL won’t help. You’ll need pollution liability insurance for that.

7. Liquor-Related Incidents

If you serve or sell alcohol, and an intoxicated person causes damage or injury, you need liquor liability insurance to be covered.

8. Cybersecurity Breaches

General liability excludes claims related to hacking, data breaches, or leaked customer information. You need cyber liability insurance to protect your digital assets.

9. Contractual Obligations

If your business assumes liability through a contract (beyond what’s normally expected), that may be excluded from coverage. Always review contract terms and insurance alignment.

10. Punitive Damages

These are financial penalties imposed to punish wrongdoing and are generally not covered by standard general liability policies.


✅ Summary of What’s Not Covered

Not Covered By GL InsuranceYou Need This Instead
Employee injuriesWorkers’ Compensation Insurance
Professional mistakesProfessional Liability / E&O
Your own propertyCommercial Property Insurance
Vehicle accidentsCommercial Auto Insurance
PollutionPollution Liability Insurance
Cyber attacksCyber Liability Insurance
Liquor incidentsLiquor Liability Insurance
Punitive damagesUmbrella or Excess Liability

 

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