Gross Negligence

What Does Gross Negligence Mean?

Gross negligence refers to an action or omission that demonstrates a blatant disregard for the safety of others when a reasonable duty of care is owed. It typically has the potential to cause significant harm. In the context of insurance, general liability policies commonly exclude coverage for gross negligence.

Insuranceopedia Explains Gross Negligence

Exclusions for gross negligence in general liability insurance policies are highly relevant in liability cases where a party is being sued for damages. This is because the party could be responsible for covering the entire cost without reimbursement from the insurance company. For example, if a helicopter tour pilot injures a customer while flying under the influence of alcohol, this could be considered gross negligence and may not be covered by the insurer. Many businesses pair their general liability policy with commercial umbrella insurance to raise their per-claim limits, though umbrella policies usually follow the same exclusions as the underlying coverage. Professionals like pilots and physicians often also carry professional liability insurance to cover claims tied to mistakes made on the job.