For small businesses in Suffolk County, NY, general liability insurance can be a foundational safeguard against everyday risks. This coverage can protect your business from financial fallout due to third-party claims. However, understanding what it doesn’t cover is just as crucial as knowing what it does.

What It Covers

General liability insurance typically covers the following three main areas:

1. Bodily injury—If a customer slips and falls in your store or office, your policy can help cover medical expenses and legal fees.

2. Property damage—If your business operations accidentally damage someone else’s property, your policy can help pay for repairs.

3. Personal injury—This includes coverage for claims of libel, slander or copyright infringement.

What It Doesn’t Cover

Despite its broad scope, general liability insurance has notable exclusions, such as the following:

· Intentional acts—Damage or injury caused deliberately is typically not covered.

· Contractual liability—If you assume liability through a contract, general liability typically won’t protect you.

· Liquor liability—Businesses that serve alcohol should consider separate liquor liability coverage.

· Employee injuries—These are typically covered under workers’ compensation, not general liability.

· Auto accidents—Damage caused by business vehicles typically requires commercial auto insurance.

· Professional errors—Mistakes in services provided (e.g., inadequate advice) are typically covered under professional liability insurance.

· Pollution and environmental damage—Claims related to pollutants are typically excluded.

· Damage to your own property or products—General liability typically doesn’t cover damage to your business’s own assets or inventory.

Learn More

General liability insurance can be a vital layer of protection, but it’s not a catch-all. Business owners should review their policies carefully and consult with a local insurance broker. Supplementing general liability with other policies is recommended. For general liability insurance near you, contact Lupton & Luce.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.