Commercial General Liability Insurance – Interfacing with Intentional Torts

Commercial General Liability Insurance is the standard policy that most small businesses have in place in order to defend themselves against civil wrongs also known as torts. Care needs to be taken when obtaining business liability insurance quotes. There typically are nine intentional torts that are recognized within the legal system of the United States of America. Let’s explore these nine intentional torts and how they relate to the commercial general liability insurance.

• Intentional torts against the person. These normally can include assault, battery, false imprisonment, and false arrest. The standard commercial general liability insurance policy typically does not provide coverage for these losses unless it is specifically endorsed onto the policy. When obtaining general liability insurance quotes make sure that this is an option.
• Defamation. These are written statements that are made public that can damage the plaintiff’s reputation and/or asking in the community. Slander is another form of defamation which is done in an oral form publicly. Finally, libel is defamation that is put out in the public arena in a written format. These coverages can all be endorsed onto the insurance contract by the insurance company.
• Invasion of privacy. This involves some violation of privacy specifically with regards to seclusion or the ability to be free from publicity. This potential loss too can be added to the liability policy. If you are a contractor the contractors liability insurance might also need to be extended to cover third parties.
• Fraud. Fraud deals mainly with deceiving and/or deception of another party in trying to get the other party to part with their property in an illegal manner. Normally, this is not covered under the liability policy and is best covered under employee dishonesty bonds. Limited liability insurance is available on the standard policy.
• Bad-faith. This is an outrageous breach of implied conduct of dealing with all parties concerned in a good faith and fair manner. Sometimes by expanding the contractual liability provision of the liability this coverage can be provided.
• Business relationships interference. These losses arise out of intentional interference with business relationships with the intent to cause injury or harm. Sometimes these types of torts manifest themselves as false information, competition that will is unfair and/or illegal, interfering with a company or person’s employer, or interference with a trademark, patent, copyright and the like. Again these are specially coverage not normally covered under the liability policy but can be endorsed. If you own a restaurant and have restaurant liability insurance you might have specific coverage to protect you in this very competitive industry.
• Legal process misuse. Usually this is described as Melissa’s prosecution. This involves filing frivolous lawsuits and the like. The specific typical loss is difficult to defend but with the broad and liability policy coverage is sometimes available. An online general liability insurance quote needs to be reviewed carefully to make sure you have this coverage.
• Intentional torts against property. Usually is manifested in the form of a trespass on a person’s property and/or possession, or a conversion of another person’s property which in essence is theft. As was stated previously normally intentional acts are not covered under the liability policy but can be endorsed, this particular loss is problematic in finding coverage.
• Nuisance. This can be a private nuisance or a public nuisance. The private nuisance involves some sort of interference with another private property’s owner’s constitutional right of enjoyment of their real property. The public nuisance usually affects a greater number of people and involves the local governmental to intervene in these offenses. The standard liability policy does not cover intentional torts to someone who is intentionally creating a nuisance probably will not be able to find coverage within their liability policy. Remember, getting free business general liability insurance quotes can be full of pitfalls if you don’t consider the source as being reliable and authoritative.

In conclusion, these nine intentional torts are usually not covered in the standard liability policy. For most of these intentional torts coverage can be enhanced or endorsed onto the liability policy. For those that cannot be covered under the liability policy there are special policies and/or bonds available to provide the coverage which is needed. Commercial General Liability Insurance and possibly a commercial insurance umbrella that has the proper endorsements may be all that you need to give you the peace of mind you are looking for.