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What types of insurance does General Liability not include?

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Occasionally, general liability insurance is all the insurance that your business needs. In most cases, however, general liability policies cover lawsuits based on common incidents such as bodily injury and property damage, but do not include some or all of the following additional types of insurance coverage:

Product liability: Product liability insurance protects your company against claims of injury caused by use of a company�s product. Manufacturing companies in particular should consider purchasing this type of coverage.
Professional liability: Professional liability insurance is also known as malpractice insurance and is required of certain professions in some states. Doctors and lawyers, among others, often maintain professional liability insurance that protects them against errors and negligence in the practice of their profession.
Workers� compensation: Workers� comp insurance pays employee medical bills and a majority of an employee�s income if an employee is injured on the job. In most states, workers� compensation is required of nearly all businesses.
Employment practices: Lawsuits based on age, sexual, or racial discrimination are increasingly common in the United States. Employment practices insurance protects a company from lawsuits based on claims of discrimination or harassment at the workplace.
Umbrella policy: An umbrella policy is a catch-all policy for businesses. It pays out only when you have reached limits on your other policies, so you will rarely use it, but it is a credible safety net.
Directors/Officers� insurance: Directors and officers� insurance protects a company�s executives in lawsuits. Corporate scandals have led to increased lawsuits against executives who are accused, among other things, of misusing company funds or practicing excessive negligence. Directors and officers� coverage helps to protect the personal finances of executives.
Auto insurance: If your company regularly transports people or materials for business purposes, you may want to invest in business auto insurance that pays the costs when your employees cause an accident on the job.

Some general liability insurance policies include coverage in some of the above areas. These coverages, however, are not standard, so make sure you ask for them if you want them. If your policy doesn�t include the above, your business can decide if it wants to purchase all or none of the above types of coverage. Examine the needs and risk areas of your business and then decide exactly what you need.

Next Page: How should I select a General Liability policy for my business?

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