All You Need to Know About a Comprehensive General Liability Insurance Policy

The policy is offered to the business and provides them cover for the compensation that is required to be paid and the expenses incurred in the legal defence of the business. The insurance coverage differs from policy to policy and depends upon the type of cover bought at the time of purchasing the policy, but generally, the Comprehensive General Liability Insurance Policy provides the below coverage:

• Third-party bodily injury and loss or damage to the third-party property in any unexpected circumstances

• Any personal injury caused by the business while a third party is in and around the premises

• Advertising injuries, such as trademark breach

• Invasion of privacy

• Any loss caused to the third party due to usage of the insured business's product

• Any loss or damage occurred to the third party due to fire during the business operation hours

• Depending upon the policy you purchase, the compensation is provided not only to bodily injuries but also to mental injuries, humiliation, shock, etc., resulting from the physical injury

A Comprehensive General Liability Insurance Policy is ideal for businesses that:

• Involve direct contact with the customers

• Represent customer's business in any form

• Have access to customer's assets

• Involve usage of third-party sites

Comprehensive General Liability Insurance is most likely the first insurance cover that a new business venture would buy.

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Comprehensive General Liability Insurance Exclusions:

There could be various provisions in the policy that can restrict the insurance coverage. Hence, it is crucial to read the policy document carefully to determine what is covered in the policy and what is not. Here is a list of common exclusions under the policy:

1. Intended or Expected Injury:

   Like any other insurance policy, the Comprehensive General Liability Insurance Policy does not cover any injuries or losses, or damages that are intended or expected from the insurer's standpoint.

2. Contractual Liability:

   Bodily injury or property damage which the insured business is liable to pay as per the agreement.

3. Cyber Attacks:

   The Comprehensive General Liability Insurance Policies do not cover any loss or damage caused due to an electronic mode, such as a cyberattack, unless it is specified in the policy document.

4. Intoxicants Liability:

   If you are in the business of manufacturing, selling, distributing, serving, or furnishing alcohol or any other intoxicants, you should know that any bodily injuries or property damages arising out of any kind of intoxication are not covered by the insurer.

5. Workers' Compensation and other similar laws:

   As an employer, you need to follow all the laws related to workers' rights and compensation. Any liability caused by not following laws like workers' compensation, disability benefit, unemployment compensation, etc., is not covered under the policy.

6. Pollution:

   The policy does not cover any bodily injury or property damage arising out of the actual, alleged, or threatened discharge, dispersal, seepage, migration, release, or escape of pollutants.

7. War or War-like Conditions:

   The Comprehensive general liability insurance policy does not cover any bodily injury or property loss, or damage caused by any declared or undeclared war or war-like conditions.

8. Property Damage:

   The policy does not cover the property loss or damage that occurred to:

    - The property that you own; whether it is rented or occupied

    - The property you have sold, abundant, or given away

    - The property that is in your control or custody

    - The property was loaned to you

9. Product Damage:

   Any loss or damage that occurred to your product/s is not covered under the Comprehensive General Liability Insurance Policy.

10. Work Damage:

    The policy does not cover any damage that occurred to your work or part of it.

11. Employment-related Damage:

    The Comprehensive General Liability Insurance Policy does not cover bodily injury arising to a person for any of these reasons:

     - Refusal to employ the person

     - Termination of the person's employment

     - Employment-related practices, policies, acts, etc.

     - Person's demotion, performance evaluation, reassignment, defamation, harassment, humiliation, discrimination, etc.

     - Bodily injury to a person's immediate family members as a consequence of bodily injury to that person

12. Nuclear:

    The liability arising out of any injury or damage caused due to a direct or indirect nuclear attack is not covered by the insurer.

To Conclude:

Buying a Comprehensive General Liability Insurance Policy is a smart choice businesses can make. It eliminates the business liability arising out of third-party injuries, losses, and damages. However, before buying the policy, it is necessary to check for the coverages offered in the policy. This will ensure your general liability insurance requirements are met. If your preferred insurer does not offer any specific coverage in a basic policy, you can buy it as an additional cover by paying some extra premium. It is also advisable to compare different insurers with the coverage, benefits, and premiums to make sure you get the most of the policy at an affordable premium.

Warm Regards,
Ketki Jadhav
Content Writer