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.
Contractual Liability
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.
Liquor Liability
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.
Pollution
If the discharge of pollutants from the premises causes bodily injury, the CGL excludes coverage. This is regardless of whether the release of pollutants was sudden or gradual or where the release occurred. Insurance also excludes the cost of the cleanup of pollutants.
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:
Intentional Acts
In most cases, if an insured knowingly violates someone else’s rights, the CGL does not cover that insured. This would include publishing something the insured knows is false and committing criminal acts that result in injury.
Contractual Liability
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
Coverage excludes liability for advertising the wrong price for goods or services.
Infringement of Patent, Trademark or Trade Secret
The CGL policy does not cover infringement of others’ intellectual property; other than claims of violating someone else’s copyright, trade dress, or slogan in advertising.
Electronic Chat Rooms or Bulletin Boards
Insurance does not cover liability for comments made in chat rooms or bulletin boards.
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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