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Liability Exclusions That Could Affect Your Business

Liability Exclusions That Could Affect Your Business

We all know how easy it is to click the “I Agree” button on a website or for a piece of software when it is required. Most of us don’t read the fine print and have no idea what we are agreeing to. Sometimes that can come back and bite us later on. Insurance policies are contracts, just like those terms and conditions. You are usually made aware of the terms and conditions of an insurance contract twice: once when you receive the quote or proposal and then when you receive the policy. Do you read them? If not, you should. What you don’t know can hurt your business. Here are a few sample liability exclusions and endorsements that could come back to haunt you. Designated Premises Endorsement This endorsement, sometimes called Limitation of Coverage to Designated Premises or Project (CG 21 44 sample here), is most often used on liability policies that are project or location-specific. However, the endorsement may show up on liability policies to help curb premium costs. Let’s say you run a restaurant. Most restaurants operate out of a fixed location. So the liability coverage is limited to anything that happens at your restaurant on 123 Main Street. Now your cute little Anytown, USA is going to have a centennial celebration in the town square two miles down the road. You’ve decided to set up a booth there to sell food and drink.  If your policy has a Designated Premises Endorsement, there would be no coverage for bodily injury or property damage incurred by patrons of your restaurant’s booth while they are at the centennial...