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While commercial general liability (CGL) coverage is quite comprehensive, not every type of business liability exposure is covered. After examining the exclusions, you might find gaps for which you have to purchase additional coverage.

Here are some of the most common CGL exclusions (not an exhaustive list).

  • Certain types of liability claims covered under other types of insurance policies, including workers’ compensation, professional liability, commercial auto liability, and directors’ and officers’ liability coverage
  • Pollution liability claims
  • Claims resulting from damage to the property of others that is in the care, custody, and control of the business (e.g., vehicles at an auto repair shop)
  • Product recall liability claims
  • Any legal actions that do not involve a claim for bodily injury, property damage, personal injury, or advertising injury
  • Most contract disputes
  • Actions by a governmental agency related to failing to follow regulations
  • Claims for back taxes
  • Failure to provide a safe workplace
  • Professional negligence, or errors and omissions claims

Business owners can purchase other types of liability policies to fill any gaps that they have, or you can often add endorsements to your CGL policy for certain types of liability coverage.