What Isn't Covered
Every liability insurance policy has its fair share of exclusions. The best way to determine which exclusions apply to you is to simply read your policy. But it is a good idea to have an idea of what may be excluded when you are shopping around for your liability insurance so that you are not surprised when you read your policy.
Know that liability insurance is used in protecting you from accidents that cause harm to others. An accident is an act that is not intentional, so, of course, any injury that is cased to anyone is not intentional. Unfortunately, accidents do happen.
We also live in a society where anything that a person could be held liable for could result in a lawsuit against them. For the injured individual, this is so they can be guaranteed the money that they need to pay for medical expenses or other damages that have been incurred.
About Liability Insurance
Liability insurance does cover a number of areas. For instance, you can protect yourself in the case that you have an employee who accidentally causes damage to the property of another person. Tenant and liability insurance can protect the contents of a rented building. You can also protect your company against an accident that a non-employee may sustain while on the property. Even employees can sustain injuries while on the property and they will turn to the employer for reimbursement for the medical costs. This can cost a lot of money, but you may need to add a different type of coverage for this.
Medical costs are usually an add-on. There are a number of add-ons that you can add to your policy so that you are adequately covered in all areas that you need to be covered in. Your business type determines what you need and what you don't need.
Even advertisement injury is included. This is when an advertisement has caused an injury to another company. The other company may be compensated by your insurance company for the damages that were incurred.
So as you can see, general liability coverage covers you in a wide array of areas. But there are certain areas that are not covered by liability insurance.
The exclusions are outlined in the policy. The basics, however, are that the insurance company will not cover any intentional acts. The acts that are covered are solely accidental.
The insurance company will also not cover dishonest or fraudulent acts. So if an employee commits a fraudulent act and it causes harm for someone, you may find that your business is going to be held liable for the act. This means no protection. The damages are going to come out of your pocket and, depending on what the act was and what the damages were, this can become quite expensive.
You also need to take a look at the add-ons so that you can add what it is you need. If your primary policy is not going to cover it and you need it, you need to add it. Fortunately, you can affordably add on the coverages that you need and will find that the existing coverage that you have is rather affordable itself.
So make sure you protect yourself from those accidental acts that cause some kind of harm to others. You don't want to cause harm to anyone, so make sure you are covered in case you do. That way you can protect your bottom line and even your reputation. Lawsuits usually do find their way into the public eye and it is unfortunate that people do talk about them. No one wants to have to deal with the financial consequences of bad gossip, so it's important to know what is and what isn't covered by your policy.