Every policy contains exclusions, and it's very important that you understand each of them as a restoration contractor. The following post will point out the most common exclusions found on a general liability policy. However, as a restoration contractor, your policy will most likely contain additional exclusions that could dramatically affect your insurance coverage. If you have any questions on exclusions on your specific insurance policy, please feel free to give our office a call.
Before addressing the most common exclusions, it's important to provide a breakdown of the three coverage parts that comprise the general liability policy:
Coverage A provides protection in the event of bodily injury or property damage liability,
Coverage B - in the event of personal or advertising injury liability, and
Coverage C covers the medical payments of those injured on the premises of the insured or by the insured's business operations, regardless of fault.
Exclusions to the Commercial General Liability Policy
Each of the general types of coverage that a commercial general liability policy offers has its own exclusions and it is just as important to be familiar with them, as with the coverage itself.
Coverage A of a commercial general liability policy specifically excludes the following instances of commercial liability:
The majority of cases of pollution liability (coverage provided on its own policy)
Employment-related liability (which is otherwise covered under Workers Compensation insurance);
Contractual liability (with some stipulations, read your policy for full details)
Commercial auto, watercraft or aircraft liability; (covered under its own policy)
Personal and advertising liability, etc.
The exclusions worth mentioning, which apply to Coverage B of a commercial general liability policy are as follows:
Any unlawful acts by the insured;
Civil rights violation;
Libel or slander;
Advertising product liability;
Failure of a product or service to conform to the standards or description set by the seller;
Infringement of intellectual rights such as copyright, patent, etc.;
Publishing, broadcasting, advertising offenses;
Unauthorized operations conducted on/over the Internet.
Coverage C of a commercial general liability policy specifically excludes the following instances of bodily injury:
Injury to the insured, their tenants or employees;
Any bodily injuries that are excluded under the bodily injury and property damage coverage (Coverage A);
Injuries which can be otherwise covered by Workers Compensation insurance or similar laws;
Injuries caused by liability exposures that are covered under Coverage A, such as product-completed operations.