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Commercial General Liability Insurance – Why Start Here?

Liability insurance, of all the insurance policies that are available, is the main policy that protects you from claims and losses from third parties. Most of all the other policies, such as the commercial property insurance, are targeted for your own personal assets. This could be property insurance for your real property, your personal contents, property of others, and your automobiles. The other policy that goes in conjunction with the business general liability insurance would be the umbrella liability insurance policy. The umbrella policy also provides protection against third-party claims and losses. The umbrella policy is an excess liability insurance policy which goes above and beyond your commercial general liability coverage.

Comprehensive general liability insurance, which is sometimes known by the abbreviation CGL, provides more broad coverage than does the stripped-down general liability policy known as OL&T. This stripped-down policy covers on premises claims and losses only and not of premises coverage. The abbreviation stands for owners, landlords, and payments. While sometimes you might not have a choice if your small business insurance is an a higher risk category from and insurance underwriting standpoint, it would be in your best interests to always purchase the commercial general liability policy versus the stripped-down OL&T policy. By not having of premises coverage you open yourself up to many more public liability insurance claims and losses that you may not have anticipated.

While there are scores of policies and hundreds of coverages available, starting with the commercial general liability insurance can provide peace of mind that you are looking for. Your property and other assets may be protected in many different ways besides insurance. Claims and losses from your liability exposure typically can normally only be covered by you securing the proper liability policy. Damages to your property and tangible assets can be easily calculated and the loss exposure anticipated. When it comes to general liability claims and losses there are theoretically no limit to the amount of damages that a third party can claim in a lawsuit brought within most of the United States of America.

The average price for a liability policy United States is typically around $500 per year. So for less than the cost of a tall mocha per day you as a small business owner can have over $1 million of liability insurance. Typically liability insurance is the last thing that is purchased before business owner enters into their leases and/or contracts. That can lead to purchasing the wrong type of coverages and/or paying too much for the type of coverages that you end up purchasing.

Commercial General Liability Insurance while it is one of many policies and coverages, it should be the first policy that you purchase when starting or opening your new small business. Making sure that you have the broaden CGL policy versus the stripped-down OL&T policy will go a long way in making sure you have little if any gaps in coverage. If you keep it all in perspective, paying on average about a $1.50 per day for your CGL policy it is an overhead cost that is well worth the minor expense.

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