What coverage is typically excluded from standard general liability policies?

Standard general liability policies typically exclude coverage for intentional acts and contractual liabilities. This exclusion is rooted in the foundational principle that general liability insurance is designed to cover unforeseen and accidental incidents rather than deliberate or intentional wrongdoing.

Intentional acts refer to actions taken with knowledge and purpose, which can lead to liability but are not covered by this type of policy. Insurers do not cover losses resulting from intentional harm since it would be against the principles of insurability and fairness in risk management. Contractual liabilities, on the other hand, arise from obligations created in contracts, which are usually expected to be fulfilled by the parties involved. Since these liabilities are associated with agreements made by the insured, insurers typically do not extend coverage for them under standard provisions.

Accidental damage caused during operations, claims arising from negligence, and property damage caused by fire are typically covered under general liability policies, provided they meet specific requirements or fall within the limits of the policy. The exclusion of intentional acts and contractual liabilities underscores the importance of understanding the scope and limitations of general liability coverage.