Does General Liability Insurance Completely Cover My Small Business?

Many small business owners are confused about the coverage they get from their general liability insurance policy. While this is the most basic of all business insurance policies, there are quite a few things that it will not cover you for. It is important to understand what you’re not covered for (commonly referred to as “exclusions”) and take necessary precautions to mitigate the probability of one of these excluded claims arising.

The most common exclusion on your general liability insurance policy is claims of professional negligence or errors and omissions. If the damage resulting from negligence on you or your employee’s behalf resulted in non-physical damage, your general liability insurance will not cover the suit.

If your employees claim that you treated them unfairly or discriminatively, your general liability insurance will not be able to cover you. This exclusion can be covered by purchasing employers practice liability insurance or EPLI.

The last major exclusion deals with your subcontractors. Any subcontracted work that you bring through your doors is not covered by your general liability policy. This means that you should get separate coverage for your subcontractors, or ensure that the subcontractors you use are utilizing their own coverage policies.

For more information on general liability insurance and how it pertains to your small business, please visit the TechInsurance Small Business Center.