The Hidden Gaps in General Liability Insurance: What Florida and Virginia Business Owners Miss

Most business owners in Florida and Virginia carry general liability insurance. It’s usually the first policy they buy, and often the only one they think they need.

But here’s what we’ve learned at Pelican Shield Insurance Group , based in St. Petersburg and serving clients across both states: many general liability policies look solid on the surface but are full of silent exclusions. And those hidden gaps can turn into big, expensive surprises at the worst possible time.

We work with contractors in Virginia Beach, retailers in Sarasota, consultants in Richmond, and food truck owners in Orlando and we’ve seen too many near-misses and close calls from businesses that thought they were covered…..until they weren’t.

If you want to make sure your coverage matches your actual risk, reach out or browse our other commercial insurance options to see how we do things differently.

What General Liability Covers - And What It Doesn’t

Let’s start with the basics. A typical general liability (GL) policy covers:

Bodily injury to non-employees (like if a customer trips and gets hurt)
Property damage to someone else’s stuff caused by your business
Some legal defense costs tied to those incidents
Advertising or personal injury (think slander, libel, or copyright issues)

Whether you're running a remodeling firm in Tampa or a nightclub in Alexandria, this coverage is foundational. But GL doesn’t protect your business from everything. And it’s not meant to.

Here’s where things get tricky.

1. Your Professional Work Isn’t Covered

If your business offers advice, design, planning, or any kind of professional service, a GL policy won’t cover mistakes tied to the actual work.

For example:

A marketing consultant in Tallahassee launches a campaign that accidentally violates a competitor’s trademark
An IT contractor in Virginia Beach misconfigures a system, causing a client’s data loss
A business coach in Roanoke gives financial advice that leads to client losses

In each case, general liability doesn’t apply. You’d need professional liability (errors & omissions) insurance , and without it, you’re footing the bill.

2. You’re Not Covered for Employee Injuries

Many business owners are surprised to find out their GL policy doesn’t protect their own team.

If a dishwasher at a bistro in St. Petersburg slips and breaks their wrist, or a warehouse worker in Norfolk strains their back lifting inventory, that claim is denied under GL. You’d need workers’ compensation insurance to handle it.

Not having this can land you in legal hot water, especially in high-risk fields like construction, food service , and delivery. Providing the right coverage for your employees shows you value their well-being, and it’s a clear marker of a business that’s doing things right.

3. Your Property Isn’t Included

A general liability policy protects others’ property - not yours.

So if a fire damages your apartment building in Fort Lauderdale, or a pipe bursts at your Richmond office and ruins your computers, your GL won’t help. You’ll need commercial property insurance or a business owner’s policy (BOP) to cover your own losses, including business income loss.

Some business owners think their lease takes care of this. Spoiler: it doesn’t. And landlords usually require you to carry your own property coverage anyway.

4. No Protection Against Cyber Threats

If your business stores customer data, sells online, or even just uses email, you’re open to cyber risk.

Unfortunately, general liability won’t protect you if:

Your e-commerce store in Sarasota gets hacked and customer payment info is stolen
A phishing email dupes an employee in Arlington into wiring money to a fake vendor
Ransomware locks up your system in Jacksonville for three days

With cyber liability insurance , you’d get help covering costs like breach notifications, recovery, lawsuits, and lost income. Without it, you’re on your own.

5. Liquor Liability Is Not Automatically Included

If your business serves alcohol - whether you run a bar in downtown St. Petersburg, a wine lounge in Alexandria, or a restaurant in Sarasota - you may be more exposed than you think.

Most general liability policies don’t automatically include liquor liability , even though it’s one of the biggest risks in food and hospitality.

Here’s how that plays out:

A guest at your Virginia Beach restaurant has too much to drink, gets in an accident, and their attorney names your business in the lawsuit
A bar fight breaks out at your Jacksonville pub, and a patron sues for injuries
A customer at your Fort Lauderdale cocktail bar claims your staff overserved them, leading to property damage

These types of claims are typically excluded under standard GL policies unless you have liquor liability coverage in place. And when assault & battery exclusions are also present (which they often are), it can leave you completely unprotected even if your team didn’t start the incident.

That’s why it’s critical to work with an agency that doesn’t just assume you’re covered. At Pelican Shield, we ask the right questions upfront - because we know what can go wrong after last call.

6. The Fine Print Can Make or Break You

Even if your general liability coverage looks solid on paper, the details buried in exclusions and endorsements can change everything.

We regularly see policies across Florida and Virginia that limit or exclude coverage based on:

Specified operations – applicable especially in the construction industry , unless you're operations are listed on the policy, you may not be covered
Territory restrictions – where your work is covered geographically
Subcontractor exposure – if they don’t carry their own coverage, you may be liable. And even worse, it's possible your GL doesn't cover it either
Height and depth limitations – for construction or repair work
Entertainment exclusions – live music, DJs, or events at restaurants, bars, or venues can trigger exclusions unless specifically covered
Vacancy clauses – if a property you own or manage is vacant beyond a certain period (often 30–60 days), coverage can be reduced or voided entirely

These are things you won’t catch unless you know to look, and most business owners don’t have the time to sift through pages of legalese.

That’s where working with Pelican Shield Insurance Group pays off. We don’t just get you a policy. We walk you through what’s actually in it, explain what it means for your business, and help you avoid surprises that could cost you time, money, or worse.

You’re the one building the business. We’re the ones making sure it’s covered - properly, and clearly.

Regional Blind Spots: Florida and Virginia Differences

Different states, different risks. At Pelican Shield, we tailor policies to fit local challenges so our clients in Miami have different coverage as someone in Roanoke.

In Florida:

Many policies exclude flood and wind damage unless added separately - a major issue in coastal cities like Naples and Tampa
Construction and roofing businesses have stricter insurance requirements
Retail and hospitality businesses in tourist-heavy areas like Orlando may need higher liability limits due to high foot traffic

In Virginia:

We see more issues with misclassifying independent contractors under workers’ comp rules
Commercial leases in cities like Alexandria often require specific liability limits that GL policies don’t always meet
Tech, education, and creative firms in areas like Charlottesville need professional liability - but don’t realize it until there’s a claim

The Real Cost of Missing These Gaps

Insurance doesn’t just protect your money - it protects your momentum.

Getting hit with an uncovered claim means more than just writing a big check. It means:

Delays while you scramble to fix the damage
Reputation damage if word gets out
Missed projects or events due to downtime
Time and energy spent on legal messes instead of growing your business

Good insurance isn’t just an expense - it’s a return on investment that saves you time, money, and lost opportunity when things go wrong. Working with an agency like Pelican Shield means you’re not alone when things get complicated. We take care of the insurance side so you can focus on the part you’re best at - running your business.

Ready to Patch the Gaps?

If you're unsure whether your current insurance actually protects your business where it counts, you're not alone - and you shouldn't have to figure it out on your own.

This is exactly where working with a trusted insurance agency makes all the difference.

At Pelican Shield, we take the time to walk through your business operations, spot hidden exposures, and explain what’s covered - and what isn’t - in plain language. No guesswork. No jargon. No crossed fingers hoping for the best.

Whether you're opening your first restaurant in St. Petersburg, own an established construction firm in Richmond, or a growing consulting firm in Sarasota, we’ll help you get clarity on your coverage - and confidence that it’s working for you, not just collecting dust in a drawer.

Let Pelican Shield Insurance Group help you round out the rest, so you’re not left hanging when something slips through the cracks.

Visit www.pelicanshield.com to learn more, read more helpful content on our blog, or contact us directly to start a conversation.

Or just give us a call at 727-369-9077.

We do what we say we’re going to do.

Frequently Asked Questions (FAQs)

1. Doesn’t general liability insurance cover most business risks?

Not always. General liability is a great starting point, but it has limits. It typically covers things like bodily injury to customers or property damage to someone else’s stuff. But it won’t help if an employee gets hurt, your own property is damaged, or a client sues you for bad advice. That’s why it’s important to build a policy that actually fits your business - not just rely on a generic plan.

2. I run a bar/restaurant - do I need liquor liability insurance if I already have general liability?

Yes. Most general liability policies exclude liquor-related claims, even if serving alcohol is a major part of your business. If a customer gets overserved and causes harm - or if there’s a fight on the premises - you could be left completely unprotected. Liquor liability coverage (and reviewing any assault & battery exclusions) is critical for bars, restaurants, breweries, and any venue that serves alcohol.

3. How do I know if my policy has exclusions I should be worried about?

Exclusions are often buried in the fine print - things like specified operations limits for construction work, entertainment exclusions at restaurants, or limits on vacant properties. These can drastically change what’s actually covered. That’s why working with a commercial insurance agency like Pelican Shield matters. We read the policy so you don’t have to, and flag the things that could hurt your business later.

4. What’s the difference between general liability and commercial property insurance?

General liability covers claims involving other people - like customer injuries or damage you cause to someone else’s property. But if something happens to your equipment, inventory, or physical space, you’ll need commercial property insurance to cover it. Fires, busted pipes, vandalism, and similar losses aren't covered under GL. If your business has a physical location or valuable assets, you probably need both.

5. What kind of businesses need cyber liability insurance?

Almost all of them. If your business stores customer data, sells products online, uses email, or even processes payments, you’re exposed to cyber threats. General liability doesn’t cover things like data breaches, ransomware, or fraud - but cyber liability does. Whether you’re running a tech firm in Charlottesville or a retail store in Sarasota, this coverage is quickly becoming a must-have.

6. I’m not sure if I have the right coverage - what should I do?

That’s exactly why Pelican Shield Insurance Group exists. We work with business owners across Florida and Virginia to review their current policies, uncover blind spots, and build coverage that actually fits. No fluff. No insurance speak. Just real answers and real protection.