While general liability insurance policies can provide business owners with a great deal of protection, experts told Smart Business that it's important to know the limits of that coverage.
Edward Galloway and Joel Covelman from the legal firm Jackson DeMarco Tidus Peckenpaugh told the site that some business owners wrongly assume that their general policy will cover them in the event of any lawsuit.
However, they say that a typical policy won't cover claims about a breach of contract, fraud, harassment, wrongful termination or other situations. In addition, the "standard" policy may vary slightly from insurer to insurer, so its important to know where a company's existing protection stops. For situations their current plan doesn't cover, they may want to look into a supplemental policy.
In addition, the source notes that while its impossible to plan for every potential type of claim, business owners should take the time to look over their coverage on a regular basis to review the risks that they face.