Commercial General Liability Insurance 101

What's up YouTube? My name is Kenny J and this is Kenny J TV. This is video number one of the short series of commercial insurance that I am going to provide to you. I see time and time again that people don't really understand the importance of commercial insurance. I have friends and family that are small business owners that don't really have any commercial insurance and if anything were to happen like a lawsuit or damage to someone else's property while they are servicing them they could be sued and then they would have no money to back them up. So stay tuned for the ride commercial insurance video number one general liability. I always like to start out with an example so you own a coffee shop you just opened up you have about two or three employees on the opening day you guys are running around hustling delivering the coffee to the different customers in your shop. Joe is kind of clumsy sometimes and as he's serving the coffee to a customer he trips and falls and spills the coffee all over the customer. The customer suffers second and third degree burns and she has to go to the hospital. Now once the customer is at the hospital she accumulates some hospital bills. Now how does she pay for this? She's going to come after you the business owner because it is your fault or your company's fault that this incident happened. Now that's when your general liability insurance comes into place because if you were to pay that out of pocket as we all know medical bills can skyrocket and be very high so you may not be able to afford that out of your pocket but luckily enough you have general liability insurance that will cover the cause of this incident. Your general liability insurance will cover you and your company for claims made against you resulting from your products services and operations. The main three things that general liability policy covers is bodily injury, property damage, and advertising injury. An example of bodily injury is a customer slips and falls and gets injured in your store or on your premises. An example of property damage is an employee is working on something in a customer's home and they accidentally break a window. Advertising injury is injury committed in the process of advertising your business products or services. An example of advertising injury is you own a food truck you say it's 100% vegetarian. You have a lot of vegetarians coming into your food truck and trying your food come to find out that you're not 100% vegetarian and there are some meats and some food which may cause them to be sick. If they can prove this they can sue for what is called advertising injury because you are not correctly advertising your service or product. General liability insurance also covers admin costs to handle covered claims as well as judgments and settlements. So one might say who needs general liability insurance? If you have a store or office that is open to the public clients and vendors, you handle or work near client property, or you advertise or create marketing materials for your business. So people think that general liability covers everything right? It's I get a business, I have a business, I should get general liability insurance and that'll cover all of my needs right? Wrong. Things that a general liability insurance policy does not cover is commercial auto accidents. Another thing that general liability does not cover is employee injury or illnesses which is covered by workers compensation. Errors in professional services is also not covered by general liability that will be covered by professional liability insurance. And last but not least the last thing that your general liability insurance policy will not cover is costs that exceed the amount of your policy limit. But what will cover that is a commercial liability umbrella policy. So that concludes me breaking down the general liability insurance policy and who needs it, who doesn't need it, what's covered, what's not covered. If you or anyone you know own a business make sure that they are protected. If you have any questions make sure to drop a comment below. You can always email me at my email right here. Also follow me on my insurance Instagram page for the latest updates on my YouTube videos, my insurance career, and just cool things and facts that I post about insurance. Make sure to like, comment, share. Always remember to subscribe and hit that bell for my latest notifications. Again my name is Kenny J the insurance guru and this is Kenny J TV.