The fine print that can limit your liability coverage

A General Liability policy’s limits tell you only part of the story. Endorsements can add, remove, or narrow coverage, and the details matter when your business takes on new work or signs a new agreement.

Start with these four areas when reviewing your policy with your insurance team.

1. Does the policy describe the work you do today?

A classification limitation endorsement may restrict coverage to specified operations. If you have added services, changed how you operate, or expanded into a new activity, check whether the policy reflects that change.

Ask your team to compare the covered operations with the work your business actually performs. An activity that appears closely related to your core business may still need separate consideration.

2. Do your additional insured endorsements match your contracts?

Leases, vendor agreements, and construction contracts may require you to include another party as an additional insured.

Review those requirements alongside the policy endorsements. The relevant question is whether the wording provides the status and scope the agreement requires. Missing or mismatched coverage may leave a contractual obligation unmet or create an uninsured exposure, depending on the circumstances.

3. Which exclusions affect your operations?

Exclusions may address activities or exposures such as assault and battery, professional services, or construction work. Their significance depends on what your business does and the wording of the policy.

In one hotel development review, Virtus identified an exclusion for ground-up construction in a program the client believed covered its general contractor operations. The team then arranged a separate construction liability program to address that exposure. Read the diligence example.

4. Have you addressed required waivers of subrogation?

A contract may require a waiver of the insurer’s right to seek recovery from another party after paying a loss. Check how that requirement is addressed in the applicable policy and whether any additional endorsement is needed.

Review the wording before the work changes

Bring your current operations, relevant contracts, and policy endorsements into the same conversation. Ask what is covered, what is excluded, and where your obligations and coverage may differ.

Has your business changed since your last policy review? Talk with our team.