When you’re running a business, commercial general liability (CGL) insurance is a must-have. It’s your first line of defense against lawsuits involving bodily injury, property damage, and personal injury claims. But while it covers a lot, it’s not a catch-all solution.
At Eugene C. Yates Insurance Agency, we believe in empowering Sacramento business owners with the knowledge they need to protect what matters most. Here’s a clear breakdown of what commercial liability insurance typically does not cover—and what you’ll need instead.
1. Injuries to Your Employees
Your general liability policy covers injuries to third parties—not your own team. If an employee slips on a wet floor or suffers a workplace injury, you’ll need workers’ compensation insurance to cover medical costs and lost wages.
What to do: Pair your CGL policy with a strong workers’ comp plan to fully protect your staff.
2. Professional Mistakes
If your business provides advice or services, and a client claims you caused them a financial loss, your general liability won’t cover it. That’s the job of professional liability insurance, also known as errors and omissions (E&O) insurance.
Think: Accountants, consultants, real estate agents, and marketing firms—this is your safety net.
3. Intentional Acts & Illegal Behavior
CGL insurance won’t protect your business from damages caused by criminal acts or intentional harm. If someone on your team deliberately causes harm, the insurer has grounds to deny the claim.
Pro tip: Emphasize proper training and company policies to minimize risks tied to employee misconduct.
4. Damage to Your Own Property
Your general liability policy covers damage you cause to others’ property—not your own. If fire, theft, or a burst pipe damages your office or equipment, you’ll need commercial property insurance.
Bundle smart: A Business Owner’s Policy (BOP) often combines general liability and property coverage at a discounted rate.
5. Auto Accidents
CGL policies exclude coverage for vehicle-related incidents involving company-owned vehicles. Whether it’s a delivery van or fleet of service trucks, you’ll need commercial auto insurance to protect against collisions and liability on the road.
6. Cyber Liability & Data Breaches
Data theft and cyberattacks aren’t covered by general liability insurance. If your business stores sensitive client information, you should consider a cyber liability policy.
Especially important for law firms, medical offices, and e-commerce stores.
7. Contractual Liability
Your business may take on additional liability through contracts—like assuming responsibility for a venue’s damages during an event. These aren’t automatically covered and may need a contractual liability endorsement.
Final Thought: Coverage Gaps Can Cost You
Knowing what your policy doesn’t cover is just as important as knowing what it does. At Eugene C. Yates Insurance Agency, we specialize in building comprehensive insurance packages tailored to Sacramento business owners.
Let us help you fill in the gaps so no surprise hits your bottom line.
📞 Call today for a free policy review or click below for a custom quote that fits your business goals.