Commercial General Liability policies generally contain a number of exclusions. To read more about exclusions, click here.
The following exclusions are common in most General Commercial Liability insurance policies.
Coverage A provides protection in the event of bodily injury or property damage liability, such as to customers or vendors. Exclusions can include:
Expected or Intended Damage or Injury
In most cases, if an insured intentionally causes property damage or bodily injury, that insured is not covered.
There is no bodily injury or property damage coverage for an insured held liable for damages because the Insured assumed the liability of another in a contract or agreement.
If the named insured is in the business of making, selling, serving, or furnishing alcohol, the CGL excludes any liability because of bodily injury or property damage resulting from the alcohol.
Workers Compensation and Unemployment Insurance
Statutory workers compensation benefits and unemployment insurance taxes required to be paid by any insured are generally covered by Workers Compensation policies and Unemployment Insurance not CGL.
If bodily injury or property damage is caused by the release or discharge of pollutants from the premises (including a former premises) of an Insured, the CGL excludes coverage, regardless of whether the release of pollutants was sudden or gradual and of where the release occurred. The cost of the cleanup of pollutants is also excluded.
Aircraft, Autos, and Watercraft
Bodily injury or property damage that may result from the use of aircraft, watercraft, or autos that are owned, operated, or rented or loaned to any Insured is excluded.
Coverage B covers the business in the event of personal or advertising injury liability. The coverage is for a defined set of intentional acts such as false arrest, malicious prosecution, libel and slander, copying someone else’s advertising, and infringing copyrights, trade dress, or slogans. In addition to the exclusions for Coverage A, exclusions can include:
In most cases, if an insured knowingly violates someone else’s rights, that insured is not covered. This would include publishing something the insured knows is false and committing criminal acts that result in injury.
There is no coverage for an insured held liable for damages, because the Insured assumed the liability in a contract or agreement.
Breach of Contract
If the insured breach a contract, other than an implied contract to use someone else’s advertising idea, any resulting liability will not be covered.
Failure of Goods or Services to Perform as Advertised
If a business’s goods or services are not of advertised quality or performance, there will be no coverage for liability.
Advertising Wrong Price
Liability for advertising the wrong price for goods or services is excluded from coverage.
Infringement of Patent, Trademark or Trade Secret
Other than claims of violating someone else’s copyright, trade dress or slogan in advertising, infringement of others’ intellectual property is not covered under the CGL policy.
Electronic Chat Rooms or Bulletin Boards
Liability for comments made in chat rooms or bulletin boards you host will not be covered.
Unauthorized Use of Another’s Name or Product
Liability from using another’s name or product in your email address, domain name, metatag or similar misleading tactics will be excluded from coverage.
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. Typical exclusions will include liability for injuries covered by other policies, such as injuries to your own employees and liability for activities not really a part of your business, such as playing on the company softball team.
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