Is General Liability Insurance Enough?

Running a business is stressful under the best of circumstances. The last thing a business proprietor wants is to be held liable for damages caused by accidents at the business site. Many people address this concern by purchasing a general liability policy. While these policies afford some protection, the fine print often lists exclusions that could leave your business vulnerable.

Policy exclusions frequently target the construction industry due to the high risk of expensive claims. For example, there may be exclusions for any injuries or damage caused by earth movement, including mudslides. This is especially problematic for anyone who conducts digging operations or underground work. A general liability policy may also exclude coverage for residential construction projects, like condominium complexes and apartment buildings. The insurance carrier may refuse to cover bodily injury sustained during any phase of the construction project. Furthermore, injury claims in certain states may be excluded altogether due to local insurance practices.

Potential liability insurance customers need to be careful when selecting a policy, especially in the construction industry. Prepare yourself by talking to a qualified broker who understands the limitations of a general liability policy, and who and can put together the best plan for your business. The right coverage can protect you from the potentially severe consequences of personal injury.