Occurrences that are covered by your liability policy might differ with the state, like a particular occurrence could be covered in one state but not covered in another. However, there is a list of occurrences that are excluded from business liability insurance policies of each state. They are:
Damage to business property. This occurrence is already covered by your ‘property and casualty’ insurance. Moreover, liability insurance covers only third-party and your business is considered to be the first-party.
Automobile liability. All the losses and damage even those caused by your company’s car are covered by your auto policy, which is a separate policy but not a liability insurance policy.
Damage to a worker. A worker could get injured while working in your company, but the coverage he would get for such damage should be paid by workers’ compensation insurance. In addition, workers are not “third-parties”.
Products-completed coverage. You will find a products-completed operation clause in your liability policy, thus the latter do gives coverage against losses caused by a complete product. However, losses associated with the removal of the product are covered by a separate coverage known as ‘product withdrawal’ coverage.
In the next article about business insurance: limits of liability policies.
