If you have taken out a general liability policy for your small business, you may feel it will provide all the coverage you need. Unfortunately, this is not true. A general liability insurance policy will help protect your business against property damage claims, injury-related medical expenses, associated court costs, settlements, and judgments. But there are numerous things your policy will not pay for. Here are a few things your policy will not cover.
1. Workers' Compensation Claims
While your general liability policy will cover medical expenses if a customer or visitor to your business sustains an injury on your property, it will not pay if the injured person is an employee. You must have workers' compensation insurance to cover any employee injuries.
Most states require a business to carry this type of insurance if they have more than a few employees. The requirement to carry workers' compensation insurance covers all types of businesses, including corporations, sole proprietorships, and limited liability companies.
2. Commercial Auto Accident Claims
There is sometimes a blurry line between what you can and cannot do under your auto insurance regarding your small business. If you think that your general liability insurance policy will cover anything your personal auto policy does not, you are misled. General liability insurance will not cover any commercial auto accident claims you or your employees attempt to file.
When your business owns or leases vehicles that you or your employees drive as a part of your business activities other than commuting, you will need commercial auto insurance. Your commercial auto insurance will cover multiple drivers, multiple vehicles, and some different types of motorized business equipment.
3. Commercial Property Damage
Your general liability insurance will cover damage from employee accidents that impact your customer's or client's property. Unfortunately, it will not cover damage done to your commercial property. For this type of damage to be covered, you will need commercial property insurance. Commercial property insurance will cover losses caused by many different sources, including:
Businesses located in flood zone areas may require the purchase of additional insurance coverage.
4. Intentional Damage
Your general liability policy will also not cover any intentional property damage inflicted upon your business property by you or any of your employees. Filing this type of claim against your policy will not only result in the denial of your claim but may result in the cancellation of your policy.
Contact a provider to learn more about general liability insurance.
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