There are many insurance policies on the market that contain dangerous exclusions that could lead your assets vulnerable should you have a loss.  These exclusions carve away coverage for the most common claims in the industry.  These exclusions include:

Third Party Action Over Exclusion – This exclusion is commonly disguised as a change to the definition of an employee or language added into the GL coverage form.  However, some policies call it as it is.

Essentially this exclusion excludes coverage for any claim brought against you by a third party.  These are the most common types of claims brought against a general liability policy, especially in NY.  A common example is an employee gets injured on a job site and sues the owner of the job site.  You have a contract signed with the job site owner, so in turn the lawsuit falls on you.  If your policy contains this exclusion, you’ll be paying out of pocket.

Contractual Liability Exclusion – This exclusion is usually in the form of a change to the “insured contract” language.  If you are contractually obligated to cover a claim as a result of a contract you signed and you have this exclusion.  Your policy will not cover you.

This is extremely important for general contractors and building operators.  Many contractors have these cheap policies that essentially provide no real coverage.  Be on the look out and if you are unsure, contact us and we can let you know based on the insurance carrier whether or not they have the coverage.