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Inclusions and Exclusions of Comprehensive General Liability Insurance

Posted on 29 August, 2022
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Comprehensive General Liability insurance is a policy offered to various businesses to provide them with an agency to pay off the expenses spent in legal defence and pay the compensation amount. Businesses use this policy to protect themselves from incidents arising from third-party bodily injury or unexpected property damage. Furthermore, this policy also covers personal and advertising injury caused by the insured’s business operations in the presence of a third party.

Comprehensive General liability insurance is now commonly known as General Liability insurance coverage. Under the new name, this particular policy provides the same kind of coverage against bodily injury of a third party, property damage of a third party, advertising injuries, and tampering with reputation or reputational harm.

Inclusions and Exclusions of Comprehensive General Liability Insurance

What are the Inclusions and Exclusions under Comprehensive General Liability Insurance?

Like every other policy, the insurers have kept some exclusions to keep up with the standard of the policy. Let us look at the inclusions and exclusions in Comprehensive General Liability insurance.

1. Inclusions

  • Protection of third-party bodily injury, if you are held liable because a person was injured due to your business operations or at your property

  • Suppose a third-party property is damaged while carrying out business operations. For instance, if you are delivering a product at the customer’s house and damage the gate or the wall by mistake

  • If your employees are designing an advertising campaign with an uncanny resemblance to the competitors

  • Suppose someone files a legal case against you for damaging your reputation or for personal damage. If someone sues you for advertising wrong information about your business or misleading customers, this particular coverage will cover the legal costs you incur

  • Any problem arises from the incorrect installation of products or faulty construction

2. Exclusions

  • Any advisory business being sued by customers for giving bad financial advice. For instance, if any of your employees gave wrong asset management advice to any customer, you are now being sued

  • Customers are holding you legally liable for breach of confidentiality without consent. For instance, if your business computer has been hacked and the personal information of your customers and employees has been leaked, then this particular coverage will not be able to protect you

  • Road accidents are caused by employees while driving the company vehicle

  • If your business is harmed or you are forced to shut down temporarily due to any third-party issue like fire, short circuit, or natural disaster

  • If any employee falls sick or there is a workplace injury, medical attention is needed

Why do you need Comprehensive General Liability Insurance?

A Comprehensive General Liability Insurance is needed by big and small businesses to protect themselves from bodily injury and property damage claims. These risks are common to arise during everyday business operations. However, it can get quite expensive for small businesses. Some may not have the necessary resources to cover up the liability claim.

This particular product will provide coverage in uncertain situations, albeit with the prior consent of the insurance company and within the specified period. It helps business owners work hassle-free regardless of the liability issues that might arise anytime.

Consider it if you:

  • Work with customers directly

  • Have a rented apartment for business operations

  • Need to visit clients’ property to deliver services

Case Study : Since 2000, A. R and Sons have been a leading name in the electronics industry. The company has an experienced team who has completed over 100 projects. Even though the company has set professional norms and principles that they abide by, they have purchased general liability insurance to get coverage for uncertain situations.

The company got a contract for installing two televisions at the house of a businessman. The company had sent its team to set up the television and install the unit. While they installed one of the televisions successfully, the other faced some issues. The power line and the plug point were not functioning correctly, resulting in no power each time someone tried to switch on the television.

In light of the situation, the businessman filed a lawsuit against A.R and Sons for their unprofessionalism and failure to deliver proper services after charging the full amount. The client filed a lawsuit for providing a damaged product, unprofessionalism, and breaching after-sales service norms.

In this case, the company had a general liability insurance policy. It soon approached the insurer for the settlement of the claim. The insurer investigators checked the site and found out that the problem was with the plug point and not the television unit. However, the claim was genuine since the company executives did not inform the businessman about the faulty electric line and malfunctioning plug point. Therefore, the insurer settled the claim for A.R and Sons, along with the legal charges and compensation to the businessman on behalf of A.R and Sons.

If the company had not purchased a general liability insurance policy, it would have incurred substantial financial losses. They would have had to pay the total compensation amount from their pockets.

To Conclude

Comprehensive General Liability insurance is a policy that has existed for quite some time. Since many businesses opt for it nowadays, insurers constantly revise inclusions and exclusions. However, as more and more insurance companies offer this policy, the terms and conditions will become more standardised.

For a hassle-free experience, informative customer service, and an efficient claim processing system, check out ICICI Lombard Comprehensive General Liability Insurance. Carefully review the current terms and conditions of any Comprehensive General Liability insurance before purchasing it and ensure it caters to your needs.

  • Comprehensive General Liability
  • Product Code: 4066
  • Product UIN: IRDAN115CP0001V01202021

Help us know you better!

This contains only an indication of the cover offered. For complete details on risk factors, terms, conditions, coverages and exclusions, please read the sales brochure carefully before concluding a sale.ICICI trade logo displayed above belongs to ICICI Bank and is used by ICICI Lombard GIC Ltd. under license and Lombard logo belongs to ICICI Lombard GIC Ltd. ICICI Lombard General Insurance Company Limited, ICICI Lombard House, 414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400025. . IRDA Reg.No.115. Toll Free 1800 2666. Fax No – 022 61961323. CIN (L67200MH2000PLC129408). customersupport@iciclombard.com. www.icicilombard.com. (Workman Compensation, 4010 , IRDAN115P0010V01200607)