The short answer
A business liability policy combines basic cover and options, with limits specific to each contract. Rather than relying on a ready-made list of exclusions, put seven questions to your policy. The answers show where your actual activities and your contract align, and where a discussion is needed.
1 to 3: your activities and the property you handle
- 1. Do the declared activities describe everything you do today, including services added recently?
- 2. Is property entrusted to you or worked on by you (customers' machinery, goods undergoing repair, occupied premises) provided for, and on what terms?
- 3. What does the policy provide for correcting or redoing your own work? This is often an area where restrictive terms apply.
4 and 5: money and contracts
- 4. A customer suffers a financial loss without bodily injury or property damage: does your contract provide for it?
- 5. Have you accepted liabilities in your contracts that go beyond the law (penalties, guarantees, indemnities)? They are not necessarily covered.
6 and 7: time and place
- 6. Is gradual environmental damage or damage that develops slowly covered or subject to limits?
- 7. Territory and periods: where do you work, and does the policy cover damage by reference to the date of the event, its discovery or the claim?
Basic cover and options
Insurers present business liability insurance as cover for damage caused to third parties, supplemented by options according to the activities concerned. A product example tells you nothing about your own contract: only your general terms and conditions (GTC), special conditions and endorsements count.
Write down your seven answers, with the corresponding clause. Any points without a clear answer become the agenda for your next review.
Frequently asked questions
Are there seven exclusions common to all policies?
No. Contracts differ. These seven questions help identify areas in your own policy that merit careful reading.
Does my liability insurance cover contractual penalties for delay?
Often not, because this is a contractual commitment rather than damage to a third party within the meaning of the policy. Check the relevant clause.
What should I do if my activities have changed?
Notify the insurer so that the description of activities can be updated. An undeclared activity may lead to a dispute when a claim arises.