What Liability Risks Does Your Business Face Outside the Scope of a General Liability Policy?
A general liability policy is often one of the first insurance policies purchased by business owners. It can protect your company’s assets by covering medical costs when a person is injured on your property. It can also provide the cost for a legal defense if your business is sued. However, general liability insurance in NM can also be very limited in what it covers.
Know What Isn’t Covered on Your Policy
You should understand your policy to know its exclusions to help you understand whether you need additional coverage. Typically, general liability insurance does not cover the following:
- Cyber-threats—Businesses that are connected to the internet run the risk of having intellectual property and customer data stolen. Sometimes, the losses aren’t even noticed until months after a hack.
- Employment practice issues—Employee misconduct can often leave a business liable for the costs associated with a lawsuit or the investigation. A separate policy can provide added peace of mind that one allegation may not take your business down.
- Negligence or errors—If your business is in the practice of providing a service for a fee, you may be sued if you or an employee makes a mistake that costs your client money.
Know What’s Covered on Your Insurance
General liability insurance in NM typically has many exclusions. Talk to your insurance agent about gaps in your business insurance policies and have additional coverage to manage your risks.