Hello I’m Razelle with Farmer Brown
insurance agency we’ve put together this informative video for you I hope you
enjoy. Welcome to our tutorial on general
liability insurance. So let’s begin. What is liability insurance? General
liability is a type of insurance policy that covers your business for a variety
of third party claims including property damage and bodily injury. Any time your
business has dealings with the general public, whether it’s with your commercial
property or on a job site, you can be held responsible. That’s why having the
proper coverage on your GL policy is crucial. What type of coverage does
general liability provide? The basic coverage of a commercial general
liability policy we sell are as follows general liability per occurrence with 1
million dollar limit. This means the insurance company will pay up to 1
million per incident during the policy term a general liability aggregate worth
2 million dollar limit now this refers to the limit scheduled with the
insurance company to pay for multiple claims over the course of one policy
term which is usually one year advertising liability with 1 million
dollar limit it covers damage to third parties committed by a business in the
course of its advertising its products and services products and completed
operations with 1 million dollar limit it covers liability arising out of the
insurance products or business operations off premises
once those operations have been completed or abandoned and finally we
also offer damage to property of others with $50,000 limits and medical with
$5,000 limit in case someone gets injured in a minor injury on the
location how is the price of the policy premium rated there are different tiers
of a policy a person’s doing 1 million dollars in revenue would buy a different
policy than a small handyman working alone doing about 50,000 in revenue
having listened to consideration a premium is
we priced in two different ways annual gross revenue this policy is a cost per
one thousand dollars of revenue based on your tax return you start out paying a
projected amount for the year and after each year you are audited by your
insurance company if your revenue is higher you pay more however if your
revenue is less there is generally not any refunds
I know insurance companies are not always fair so you are best using a
conservative amount if you do more you pay extra the extra costs are not much
as long as you I am somewhat of the same ball park owner employee and subcontract disgusts this is the most common type of cgl policy your premium in this type of
policy is based on a standard payroll for the owner, the cost of employees and
the cost of subcontractors. An employee does not need to have his own general
liability insurance, but if a subcontractor does work for you you
would need to be in place in their certificate as an additional insured. It
is very important to know that insurance companies treat uninsured subcontractors as employees because if he is at fault for a claim, your insurance company will
be responsible for it. But, if they have their own general liability insurance
with you as an additional insured you will have transferred your risk to your
subcontractors insurance. This is why the premium is much less because there’s
less risk for your insurance company this way. So as we already established
before general liability coverage are intended to protect you against third
parties. Join us in our next video where we will explain about the type of policies
and the type of companies you should get it from. Just click the link below and
don’t miss out on this great opportunity to learn more. Thank you for watching us
and remember we’d love to do business with you at a great price, so give me a
call for a quote at 773-657-2600 773-657-2600 I look forward to speaking with you