What Does Exclusions in Business Liability Insurance Mean?
Exclusions in business liability insurance are circumstances or perils for which a business liability insurance policy will not provide coverage. Business liability insurance provides a wide range of coverage for businesses including coverage for property damage, bodily injury, and medical expenses. However, the policyholder will have to pay out of pocket for losses incurred through excluded perils.
Insuranceopedia Explains Exclusions in Business Liability Insurance
There are many different types of possible exclusions for business liability insurance. Whether or not a peril is excluded depends on the individual policy. Examples of perils that may be excluded in a business liability policy are libel and slander, unlawful acts, intellectual property infringement, etc. So, if a business owner sustains a significant loss while he is violating the law, this loss will likely not be covered. For example, if a person was injured during a drug smuggling operation sanctioned by the business owner on his or her business property, the injury would likely not be covered.