Commercial general liability insurance provides comprehensive coverage for businesses and typically covers bodily injury, property damage and personal injury caused by the business’ operations, and injury that occurs on the premises. While this type of insurance provides quite a bit of protection, there are some things to keep in mind when considering whether you should purchase additional coverage.
While commercial general liability insurance has some limitations, you can compensate for them by purchasing excess liability coverage in the event a claim exceeds the limit provided for in the general liability agreement. Another important factor to consider is whether the insurance is a claims-made policy or an occurrence policy. A claims-made policy provides coverage based on when an event is reported, while an occurrence policy goes by when the event actually occurred. Differentiating between these two types of policies could mean the difference between having a claim accepted or completely denied.
Exclusions also need to be carefully considered so you’re not left with unexpected gaps in coverage should a claim arise. Injuries occurring under certain conditions, such as a product recall, for example, may not be covered under a general liability policy. By taking the necessary time to fully understand your coverage, you can avoid possible financial disasters caused by unexpected exclusions and have the assurance of knowing all your bases are covered.