How much do you know about commercial general liability policies? – II

In a previous post, we discussed how budding entrepreneurs will be confronted with the need to make a host of important decisions prior to the commencement of operations, decisions that will have a profound impact on their long-term success.

Specifically, we started discussing how business owners will need to make important decisions concerning the degree to which they want to insulate themselves from potentially devastating losses and how a commercial general liability insurance policy can prove invaluable in this regard.

As prudent as the decision to secure a CGL policy can prove to be, it’s nevertheless important for business owners to understand that this coverage is not without its limitations. Indeed, depending upon the form of their chosen venture, it may prove necessary to obtain additional liability coverage.

Liquor liability   

If a business owner is involved in the manufacture, sale or serving of alcohol in any capacity, experts indicate they should seriously consider the idea of purchasing liquor liability insurance, as their CGL policy will not cover any sort of claims in this area.

This coverage would essentially protect a business from damages or losses caused by intoxicated patrons who injure themselves and/or others.

Pollution liability

Business owners whose operations are commercial, agricultural or industrial in nature must always consider the possibility of either a sudden or gradual pollution event taking place that exposes them to either third-party or first-party environmental liability.

Pollution liability coverage can protect a business from these types of losses, as well as safeguard its assets, and insulate it from pollution-related claims seeking damages for cleanup costs, property damage and bodily harm.   

Officers and directors liability

This coverage is designed to shield those who have held, currently hold or will hold the positions of officer or director in either non-profit or for-profit companies from damages for alleged or actual wrongful acts. This could include claims involving errors, omissions, breach of duty or misleading statements to name only a few.  

It’s easy to see how this coverage could prove incredibly valuable to businesses, allowing them to stay afloat in times of crisis. As such, it’s imperative that in the event an insurer is delaying or even denying coverage that a business owner consider speaking with an experienced legal professional as soon as possible.

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