Every business owner in Lancaster should be aware of why general liability insurance matters. It's the core policy of every business insurance coverage that protects your business against a wide range of lawsuits. It covers legal costs for bodily injuries, property damage, and various business disputes. Nonetheless, there are certain items that are not covered by general liability insurance. Here are 5 of them:
While a general liability plan covers damage your company causes to others, it only covers certain damage to your own commercial property. When a customer or other third party harms your establishment, you can file a claim. However, your general plan doesn't provide coverage when you or your employees cause accidental damage to your property.
You can protect your property with a commercial property insurance plan. It protects owned or rented business space and the equipment stored at the premises.
Most insurance policies in Lancaster or anywhere else don't cover intentional damage. Even if an insured party such as a subcontractor damages your property on purpose, a general liability plan won't pay for the repairs or replacement. If such coverage existed, insurance companies would be jammed with endless claims from businesses looking for easy payouts.
General liability only covers injuries to third parties on your property, such as when a customer falls down after stepping on a slippery floor. It doesn't cover a worker who hurts themselves on company equipment. Any business with employees is usually required by their state to provide workers' compensation, which covers employee injuries and illnesses.
The reason your general liability policy typically won't cover damage to company vehicles is that you should already have a separate commercial auto plan for your fleet. It's a state requirement to carry commercial auto coverage if you use any vehicles for business purposes. If your employees use their own vehicles, their personal auto plans won't cover work-related accidents, so they'll need separate coverage.
Business mistakes made by you or your employees aren't covered by general liability. That means you'll need a different type of coverage for when a supervisor gives faulty directions that lead to a fiasco. Such errors are covered by professional liability insurance, which deals with more specific types of mishaps.
Your general liability plan does cover certain unwanted scenarios that end up in courts, such as copyright infringement or defamation. It covers legal fees if your business is accused of using protected copyrights or trademarks without permission. It also covers libel and slander issues that might arise from advertising. These issues can affect a wide variety of businesses. Nonetheless, more specific mistakes - especially those that are preventable - typically aren't covered in a basic general liability plan.
Pay attention to your business insurance policy details before you sign. Be aware of your coverage and responsibilities prior to filing a claim. That way, you'll avoid surprises and speed bumps. If you have any questions about liability insurance, contact our Lancaster team here at John E. Peakes Insurance Agency, and we will help you find the right insurance policy for your needs.
