– What Is General Liability Insurance and How Much Do I Need?


Complete Video Transcript

0:00the hi
0:08my name’s Tim gaspard gaspard church services we insure small and midsize
0:12businesses and handle their insurance needs
0:14today I’m going to talk a little bit about general liability insurance
0:18what exactly it is and how much you need is a business owner having general
0:21liability insurance
0:22is the absolute basis have any insurance I would say if you could only afford to
0:27have one insurance
0:28I think for most businesses general liability would be the insurance they
0:32would get
0:32is the absolute foundation to having your business insurance in place
0:36essentially general liability insurance as a protection and you have
0:40in the event you’re responsible your business is responsible
0:43for causing damage to a person or to property
0:46in this can happen in a number of different ways one the most common
0:50is when a vehicle accident let’s say wanted your company trucks get into an
0:54hit somebody damage their car and let’s say they get injured
0:57if they file a lawsuit against you that’s covered and your general
1:01liability insurance
1:02along same lines let’s say your manufacturing a product of some kind
1:06let’s say for instance here pistachio distributor if you distribute pistachios
1:11and the people that eat them and getting sick let’s say you could soon a class
1:14action lawsuit
1:16for your product hurting somebody that also falls under general liability
1:20so as you can see it can cover a few different scenarios
1:24that can be extremely important in protecting your business in the event a
1:27lawsuit like this occurs
1:28now when it comes to how much general liability insurance you need
1:31there’s a couple things that can dictate exactly how much coverage you wanna get
1:35from most people special you’re first starting out in business
1:38usually this is going to be dictated by your landlord
1:41or the vendors that you do business with when you move into a new place whether
1:45be in office
1:46a retail store warehouse generally speaking your landlord’s going to ask
1:51for at least one million dollars per occurrence
1:54and two million dollars aggregate just to get started
1:57and what those limits mean is that any single lawsuit or claim that you file
2:02you’re going to have one million dollars with the coverage for that single
2:06courage that happens
2:07if you’re unlucky enough to have two occurrences within a single year or more
2:11the policy’s going to cap out at the aggregate
2:14another keeping you want to look at when in regards to how much insurance you get
2:18is how much your vendors want you to have let’s say you’re a clothing
2:22if you do business with the clothing stores across a Nordstroms for instance
2:26they might require you to have four five million dollars in general liability
2:30because they want to make sure they’re protected in the event something wrong
2:33with your product so even if you’re a small business unless they don’t have a
2:37whole lotta bass says
2:38you might have to get a lot of coverage just to make the people you do business
2:41with satisfied
2:42with the type of insurance that have now also in regards to figuring out how much
2:46general liability insurance you should have
2:49certainly the limit on your insurance should grow as your business grows
2:53I’m same gas par with gas fire insurance for business dot com
2:56making sure that you have the right business insurance coverage for the
2:59right price