Delaware Business Insurance Update from CNC Insurance Associates "Your General Liability Policy Won't Cover Damage To Your Work or Product" 4-23-17

Many business owners get a shock when they find out their general liability policy will not cover damage to their work or product. Unfortunately, many owners find this out after a claim. There are some circumstances that give rise to coverage but in most cases there is not. So let's break out how a general liability policy is put together and how you can expect it to respond to a claim.
The policy provides coverage when your business is liable for  property damage and or bodily injury of others. In the course of your business  if you cause damage to another's property or injury to others, then you can expect the general liability policy to respond. However if the property damage is to your own work or product, or the injury is to you or your employees, the policy does not respond.
This distinction is what business owners need to understand. When you buy a general liability policy, you are buying protection that your business activities may pose on others, not yourself.  Here is an easy way to think about this, if your business has to fix work or replace bad work, or you have to recall your product from the marketplace, do not expect your general liability policy to cover your loss. However, if your bad work or product caused injury or damage to others, then your general liability policy should respond.  It is a good idea to discuss this with your insurance and risk professionals. Understanding how your general liability policy responds to claims, opens up the conversation of how to protect your business for the things it does not respond to. Until next time be careful out there and know your risks.


G. Kevin Nemith, President of CNC Insurance Associates & The Business Insurance Center
Serving DE, MD, PA, VA, & NJ
www.cncinsurance.com
www.bizinsurancetv.org

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