25 Apr 4 Incidents Not Covered By Your General Liability Insurance
Your general liability insurance covers you in the event that you are involved in an accident that results in significant injury or damage to property. However, there are some incidents where your policy will not protect you.
1) The Act Was Intentional
In the event that an accident happened because you or anyone on your policy intentionally caused the accident, your policy cannot be used to cover your costs. An insurance adjuster will examine the damage as well as the accident scene to determine if an incident was intentional.
2) Punitive Damages in an Accident
If a jury awards punitive damages on top of the cost of medical bills and other costs covered under a policy, it is up to the driver at fault to come up with the money to cover the punitive award.
3) Damages That Exceed Your Policy Limits Are Not Covered
Most policies will have limits on how much an insurance company will pay out after an accident. If the damages incurred exceed those limits, the driver at fault for the accident is responsible for covering those damages personally. Drivers will be able to choose their policy limits when they buy their policies.
4) Commercial Policies Do Not Cover Personal Accidents
If you have a commercial general liability policy, your coverage does not apply if yourself or an employee of your company get into an accident on their own time. However, personal coverage can be provided through an employer as a perk of employment.
General liability insurance is mandatory for all drivers in the United States. If you own a company that delivers products, it is always a good idea to get a commercial liability policy, as well. You can talk to an insurance agent for more information or to have any questions that you may have answered.