What is not covered by general liability insurance?

Complete Guide to General Liability Insurance Exclusions

Why This Question Matters for Colorado and Utah Residents

Understanding what general liability insurance does not cover is essential for every business owner in Colorado and Utah. With strict contractual requirements, region-specific risks such as hailstorms, and legal mandates on coverage in places like Larimer County, knowing your policy's limits can prevent devastating financial surprises.

• Local requirements: Colorado contractors must carry $1M/$2M minimum limits and specific endorsements—missing coverage can halt your business operations.
• Industry-specific risks: Construction, agriculture, and retail businesses in Northern Colorado and the Wasatch Front face unique exclusions (e.g., construction defect, livestock liability).
• Costly claims: 74% of businesses facing liability claims over $100,000 without proper coverage shut down within two years. Missing critical coverages can be catastrophic.

What Most People Get Wrong

Many believe general liability covers all lawsuits or accidents involving their business. In reality, it excludes:

- Employee injuries—handled by workers’ compensation.
- Professional mistakes—covered by separate professional liability.
- Auto accidents—need a commercial auto policy.
- Intentional acts or contractual guarantees—always excluded.

In Colorado and Utah, failing to understand these exclusions has led to denied claims and forced business closures—especially in industries like construction where defect lawsuits are common.

The Complete Picture

General liability insurance is designed to cover third-party bodily injury, property damage, and basic premises liability. However, it typically excludes:

• Employee injuries (covered by workers’ comp)
• Professional errors and omissions (needs professional liability/E&O)
• Auto-related incidents (requires commercial auto insurance)
• Property damage to your own property or business assets
• Intentionally harmful acts or criminal behavior
• Pollution, cyber liability, and some product recalls

For Colorado contractors, lack of a CDARA-compliant endorsement means construction defect lawsuits are not covered. For agricultural businesses in Weld County, you must add livestock-trespass and equipment endorsements. Most cities and counties in CO/UT require proof of additional insured coverage, and if you miss these, you could breach contracts or face major uninsured losses. FoCoIns helps you identify and fill these gaps, so you're never caught off-guard.

Making the Right Decision for Colorado and Utah Residents

Question 1: What risks in my business are NOT covered by general liability?

Review every aspect of your operations and look for gaps. In Colorado and Utah, special attention is needed for:

• Employee injuries (must have workers’ comp)
• Professional services (need professional liability/E&O)
• Owned vehicles on business errands (require commercial auto)
• Hail, wildfire, or livestock risks (may need endorsements or specific coverage)

Question 2: Are my contracts or local regulations creating extra exclusions?

Colorado contracts often require additional insured status and specific coverage forms (e.g., CG2010 endorsements in Larimer County). Utah businesses near ski resorts or energy production sites may face unique requirements. Review every contract and county regulation so you don’t fall short, especially on public works projects.

Question 3: Am I planning for the future—growth, new services, or expansion?

If you plan to add employees, new service lines, or operate in different counties, your current policy may no longer fit. Colorado and Utah’s rapid growth means expanding businesses must periodically reassess exclusions and needed endorsements to avoid gaps that grow over time.