When you run a hotel, franchise, or real estate business, risk is part of the daily routine. From guest injuries to property damage, you know that General Liability Insurance (CGL) is essential for protecting your bottom line. But here’s the truth: while general liability is a powerful first line of defense, it doesn’t cover everything.
For businesses in hospitality and franchising, the gaps can be costly—and in some cases, devastating—if left unaddressed. Here are five of the most common exclusions you should be aware of, plus what you can do about them.
1. Liquor Liability
If your business serves alcohol—even occasionally—you could be held responsible for accidents caused by an intoxicated guest. A slip, a fight, or a car accident that happens after service can all come back to you. Standard CGL policies exclude these incidents.
How to Close the Gap: Add a Liquor Liability policy (or endorsement) to ensure you’re covered for alcohol-related claims.
2. Professional Services
General liability covers accidents and property damage, not professional advice. If a hotel consultant gives faulty guidance, or a real estate agent is sued for misrepresentation, your CGL won’t respond.
How to Close the Gap: Add Professional Liability (Errors & Omissions) coverage to protect against claims tied to negligence, errors, or misrepresentation.
3. Employee Injuries
CGL covers third-party injuries, not your employees. In hospitality, staff face daily risks, from housekeepers slipping in hallways to cooks burning themselves in the kitchen. Without the right coverage, you’re exposed to major liability.
How to Close the Gap: Workers’ Compensation Insurance is legally required in most states and ensures your employees get the medical care and wage replacement they need.
4. Cyber & Data Breach Risks
Hotels and franchises handle sensitive customer data every day, including credit cards, driver’s licenses, loyalty program details. A data breach can lead to lawsuits, regulatory fines, and loss of trust. Your CGL policy won’t cover any of it.
How to Close the Gap: A Cyber Liability Insurance policy helps pay for legal fees, customer notifications, credit monitoring, and lost income during downtime.
Protecting Your Business Beyond the Basics
General Liability Insurance is critical, but it’s not the whole story. Understanding its limits—and filling the gaps with the right policies—can be the difference between a manageable claim and a financial disaster.
At Insuredbiz, we design insurance solutions specifically for your needs. We’ll help you spot the gaps, close them, and create a coverage plan that grows with you.
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