Though most of us understand that a business needs General Liability Insurance, we often fail to realize there are quite a number of business-related situations where protection will be required beyond the General Liability policy.
A well-rounded insurance policy will include a variety of protections, and many of them are included under the heading “Miscellaneous Liability.” There may also be endorsements to the General Liability policy, too. However, the coverage protection provided by the General Liability form is very narrow when you consider all the activities in which a business engages.
Be aware that the insuring agreement of the General Liability coverage form limits its protection to claims for Bodily Injury, Property Damage, Personal and Advertising Injury and Medical Payments.
For example, an accountant errs in his professional work and causes a client to suffer financial harm. Given the fact that financial harm is outside the scope of the insuring agreement, the General Liability policy will not provide any coverage for these errors. This is precisely the intended purpose for an additional coverage like an Accountants Professional Liability policy.
Here are the most commonly used Commercial Liability coverages and a brief explanation of their intended use.
- Liquor Liability: In the business of manufacturing, distributing, selling, serving or furnishing alcohol to others? Then Liquor Liability is a must for your business. This coverage will provide insurance protection in the event that your business causes or contributes to the intoxication of a person; furnishes alcoholic beverages to a person under the legal drinking age, or under the influence of alcohol; or violates any statute, ordinance or regulation relating to the sale, gift, distribution or use of any alcoholic beverage.
- Pollution Liability: This timely coverage will provide insurance protection for your business in the event it is brought into a claim alleging that its products or operations caused a pollution incident. Coverage may be provided for bodily injury to others, damage to their property and/or clean-up costs arising out of a pollution incident. These policy types vary significantly from insurer to insurer so please consult an insurance professional for assistance.
- Product Recall: Does your business have the potential for the recall of its products? The General Liability policy excludes this type of claim as a business risk. However, basic coverage may be purchased by endorsing the General Liability policy. A business with an ongoing potential for Product Recall incidents will require a more in-depth analysis of their insurance needs and a tailored Product Recall policy secured to insure against recall claims.
- Professional Services generally termed “Errors and Omissions Insurance” or “Malpractice Insurance”: This coverage supplements the basic insurance policy which excludes coverage for bodily injury, property damage, personal injury and advertising injury due to the rendering or failure to render any professional services. Whether the loss to your client or patient is medical-related or financial-loss related, Professional Services Liability is the right addition to your business insurance program.
- Tenant Discrimination: This coverage protects the landlord for discriminatory acts against a tenant or guest of a tenant on the basis of race, religion, age, sex, sexual preference, national origin, family status, disability or violation of the Fair Credit Reporting Act.
Please contact a McMichael Insurance representative to learn if your business has all the appropriate protections it requires.
