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 Insurance | You Need This Instead |
|---|
| Employee injuries | Workers’ Compensation Insurance |
| Professional mistakes | Professional Liability / E&O |
| Your own property | Commercial Property Insurance |
| Vehicle accidents | Commercial Auto Insurance |
| Pollution | Pollution Liability Insurance |
| Cyber attacks | Cyber Liability Insurance |
| Liquor incidents | Liquor Liability Insurance |
| Punitive damages | Umbrella or Excess Liability |
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