There is a plethora of common general liability insurance coverage gaps, and it is crucial for businesses to be aware of this information to avoid future trouble. Many insurance policies are commonly overlooked, so don’t assume that your general liability policy covers everything. Educating yourself on these issues will assist you in making wise insurance coverage decisions. You may find that you need to add coverage to fill in some prevailing gaps.
Mistakes in Listing the Names Insured
This simple slip-up could create huge issues in the long run. When there are multiple individuals who own properties under one account, be sure to properly list the main insureds and carefully review ownership of all vehicles, buildings, or anything that is part of the commercial lines account. It is always better to be safe than sorry. Take the time to make sure that everything is correct, because failure to accurately include all as named insured could potentially bring up a property or liability claim, and could leave people unprotected.
Protective Safeguard Endorsements
It is often required that you maintain your protective devices or services, meaning that it is your responsibility to properly install and maintain your safety measures such as sprinkler systems, fire alarms, automatic commercial cooking exhaust, and extinguishing systems. You may be required to have these specific items insured under your policy. Your first step is to check to see if your policy has this endorsement. If it is included, ask if it is necessary. There are some cases where a protective safeguard endorsement doesn’t make sense to exist in certain plans. If this is the case, it should be removable. If not, take action to ensure that everything is installed and in good working order.
Employment Practices Liability
Be sure you are aware of everything that employment practices liability insurance entails. This is a coverage that should be automatically discussed with you no matter the size of your business or your industry. The premium will vary due to the type of exposure whether it is internal (first-party), or external (third-party). Sexual harassment, discrimination, or wrongful terminations are some of the claims that businesses most frequently face, and they would not be covered under a general liability policy, making employment practices liability insurance a necessary gap-filler. Each case is unique, but with third party exposure it is typical for the business not to have to pay the damages and the insurance policy covers the legal expenses.
About Daniels Insurance, Inc.
At Daniels Insurance, Inc., we have a unique understanding of the risks that businesses like yours face on a regular basis. With the backing of our comprehensive coverages and our dedication to customer service and quick claims resolution, your business will be fully protected. For more information, contact us today at (855) 565-7616.