Why it matters for your company
A general liability policy usually covers liability assumed in an insured contract, which typically includes a promise to indemnify someone for bodily injury or property damage you cause. It usually does not cover promises that go further, such as paying a customer's financial losses, their lost profits, or claims unrelated to your own negligence.
Technology contracts often ask for more than any policy will pay. An uncapped indemnity for anything arising from the product, or a promise to cover the customer's intellectual property claims, puts your balance sheet behind the gap. Narrowing the clause during the contract review costs nothing and changes what the policy can reach.
Related terms
- Additional insuredA person or company added to your policy by endorsement so they can claim under it too, usually a landlord or customer whose contract asks for it. They get a right to defense and payment for claims arising from your work, within the limits of the endorsement.
- ExclusionA clause that removes a type of loss, activity or property from what a policy responds to. Exclusions sit in the base form and in endorsements, and at claim time they decide the outcome more often than the coverage grant does.
- Technology errors and omissions (tech E&O)Professional liability for technology companies: it responds when your product or service fails to perform and a customer suffers a financial loss. It is the anchor line for an AI or software company.
- Certificate of insuranceA one-page summary issued by your broker that shows which policies you carry, their limits and dates, and who the certificate holder is. It proves coverage exists and changes nothing about it.