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What are Commercial Liability Insurance Exclusions?

Commercial general liability insurance, commonly referred to as CGL insurance, is a crucial component of any comprehensive business insurance plan. It provides coverage for bodily injury, property damage, and personal injury claims arising from your business operations, products, or services. However, it’s important to understand that CGL insurance policies also have exclusions, which limit the coverage provided.

Common Commercial General Liability Exclusions

While the specific exclusions may vary depending on the insurance carrier and policy, here are some common exclusions you should be aware of:

Professional Services: CGL insurance typically excludes claims arising from professional errors or omissions. If your business provides professional services, such as legal advice or consulting, you may need additional coverage through professional liability insurance.
Intentional Acts: Claims resulting from intentional acts, such as fraud or assault, are generally excluded from CGL policies. It’s important to note that intentional acts are not insurable, as insurance is designed to protect against unforeseen events.
Employee Injuries: CGL insurance does not cover injuries sustained by your employees. For this, you will need workers’ compensation insurance, which is a separate policy designed specifically to protect your employees in case of work-related injuries or illnesses.
Property Damage: Damage to your own property is typically excluded from CGL policies. To protect your business property, consider obtaining commercial property insurance, which covers damage to your buildings, equipment, and inventory.

Additional Commercial Liability Insurance Exclusions

In addition to the common exclusions mentioned above, it’s important to be aware of other potential exclusions that may apply to your specific policy. These can include:

Pollution: CGL policies often exclude claims related to pollution, including the release of pollutants into the environment. If your business involves handling hazardous materials or operates in an industry prone to pollution risks, you may need specialized pollution liability coverage.
Cyber Liability: As technology continues to advance, the risk of cyberattacks and data breaches has become a significant concern for businesses. CGL policies typically exclude coverage for cyber liability, so it’s essential to consider obtaining separate cyber liability insurance to protect your business from these evolving risks.

Understanding the exclusions on a commercial general liability insurance policy is crucial for any business owner. By being aware of these exclusions, you can take proactive steps to mitigate potential risks and ensure your business is adequately protected. Remember, insurance is not a one-size-fits-all solution, so it’s essential to work with a knowledgeable insurance brokerage like mine to tailor coverage to your specific needs. If you have any questions or require personalized assistance, don’t hesitate to reach out to Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK and an agent will be in touch soon.