The modern business liability insurance policies are quite comprehensive. However, they do come with exclusions that you must be aware of. The exclusions lower the level of coverage that you get. When you know exactly what they are, you will be able to take additional measures to ensure that you will have the highest possible level of protection.
Expected and Intended Injury and Damage
These liability insurance exclusions may seem obvious, but it is worth putting emphasis on them. When you were previously aware that your product might cause injury or damage, you will not be able to use the policy for paying compensation to the claimant. Similarly, when you or an employee of yours harms the property of a member of the public intentionally, you will not be able to rely on the coverage. Keep in mind that the insurer will investigate the matter and will refuse to help you out in circumstances like the ones described above.
Worker's Compensation and Employer Liability
The business liability cover is for product or professional liability and for general liability. At the same time, as an employer, you may be held liable for accidental injuries to workers which occur at the workplace. In this situation, you will have to provide compensation to the worker, but you will not be able to use the liability cover. That is why you need to purchase a separate employer liability policy or sign up for a worker's compensation scheme.
Vehicle Liability
If your company owns and uses automobiles, watercrafts or aircraft, you have to buy a specially designed third party liability insurance. The general business cover will not work. In fact, you are legally required to have a special cover. Businesses which have road transport vehicles will require commercial auto insurance. In addition to the liability cover, which is mandatory, this policy can include cover against collision and against theft, vandalism, fire and natural perils.
Pollution
The public liability cover does not include pollution. If your business pollutes the natural environment in one way or another, the insurer will not regard this as damage to the public. For this reason, if there is a risk of your company accidentally polluting the environment, you have to purchase a specially designed cover or add such coverage to your existing policy as extension.
These are the general business liability insurance exclusions that you must be familiar with. It is possible for insurers to set individual exclusions based on the types of activities which your company has or on its location or another factor. That is why you should be extra careful when getting covered.
Expected and Intended Injury and Damage
These liability insurance exclusions may seem obvious, but it is worth putting emphasis on them. When you were previously aware that your product might cause injury or damage, you will not be able to use the policy for paying compensation to the claimant. Similarly, when you or an employee of yours harms the property of a member of the public intentionally, you will not be able to rely on the coverage. Keep in mind that the insurer will investigate the matter and will refuse to help you out in circumstances like the ones described above.
Worker's Compensation and Employer Liability
The business liability cover is for product or professional liability and for general liability. At the same time, as an employer, you may be held liable for accidental injuries to workers which occur at the workplace. In this situation, you will have to provide compensation to the worker, but you will not be able to use the liability cover. That is why you need to purchase a separate employer liability policy or sign up for a worker's compensation scheme.
Vehicle Liability
If your company owns and uses automobiles, watercrafts or aircraft, you have to buy a specially designed third party liability insurance. The general business cover will not work. In fact, you are legally required to have a special cover. Businesses which have road transport vehicles will require commercial auto insurance. In addition to the liability cover, which is mandatory, this policy can include cover against collision and against theft, vandalism, fire and natural perils.
Pollution
The public liability cover does not include pollution. If your business pollutes the natural environment in one way or another, the insurer will not regard this as damage to the public. For this reason, if there is a risk of your company accidentally polluting the environment, you have to purchase a specially designed cover or add such coverage to your existing policy as extension.
These are the general business liability insurance exclusions that you must be familiar with. It is possible for insurers to set individual exclusions based on the types of activities which your company has or on its location or another factor. That is why you should be extra careful when getting covered.
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