Commercial general liability insurance is not created equal. The declarations page appears to be identical to a policy with no exclusions. This means that the first page of the policy lays out everything the policy might cover in detail. However, you should be aware that exclusions are almost typically introduced later in the policy. The extensive coverage in the declarations will be limited to the page to illustrate what the policy would cover due to these exclusions.

Specific circumstances are sometimes ignored because a separate policy better covers them. Most liability policies, for example, exclude some computer-related losses because this coverage would be covered by a cyber liability policy rather than a general liability policy.

Here are a couple of endorsements (portions that exclude coverage) that we would caution against:

  • Premises Liability Exclusions

A premises liability exclusion is one of the most typical ways insurance companies decrease insurance policies. This restricts insurance coverage to a single address or a list of addresses, typically the place of business.

Coverage does not follow your business activity from location to location with this endorsement in place. This is inconvenient because an unendorsed commercial general liability policy would protect your company anywhere it traveled in the United States. The policy would only cover claims that occurred at the address indicated on the policy if it was endorsed with this exclusion or limitation. This could affect, among other things, coverage for off-site commercial dealings and parking lot liability.

This is especially problematic if your company frequently moves from one location to another. If you work in construction, for example, you will nearly never have claims originating from the company location because most of your claims will occur on the job site. If this restriction is in force and you haven’t included the addresses of all of your job locations, your CGL policy is effectively useless.

  • Operation Limitations

You may discover this endorsement on your insurance policy if you run a high-risk business. It only covers the operations that are stated. The scope of the process can be enormous (“building”) or very specific (“repair”) (“iron fence welding”). It is critical that you carefully consider this endorsement in the context of your business activities. If your company’s description does not include all you do, you’ll need to either change the endorsement wording or delete it entirely. Our specialists are CGL insurance experts and have years of commendable experience as a house insurance broker in Brampton.

  • Contractor and Subcontractor Exclusions

More commercial general liability plans include subcontractor or contractor exclusions. It has been a common occurrence in the construction industry for a long time, and it is now beginning to arise in other sectors. As an example, consider the real estate industry. Contractor or subcontractor work claims are frequently excluded from coverage due to exclusions. This would rule out coverage if a contractor you hired injured a customer while on your premises or if their lousy work damaged someone on your property.

  • Industry-Specific Exclusions

Each sector has its own set of exclusions frequently found on insurance plans. It is critical to work with a broker who is familiar with these exclusions and coverage. Get in touch with us if you are looking for an expert, reliable CGL insurance broker in Brampton.

A CGL policy will pay for any property damage or bodily injury you cause to someone else. This is the lifeblood of business insurance, and every company requires it. When you initially read the declarations page of a CGL policy, it may appear to cover any issue that arises, but endorsements will limit this coverage. If you don’t read those endorsements carefully, you can end up with a policy that doesn’t effectively protect your company.

If you have any issues regarding your CGL policy, Get in touch with our commercial insurance broker in Brampton to better understand the matter.


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