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General Liability Insurance for Small Business – Why Buy Insurance?

General Liability Insurance for Small Business many small business owners probably ask themselves the question, “why should I have general liability insurance for small business in place versus just going bare?” Normally the answer that question is answered on your behalf by your vendors and or clients. What we mean by this is that normally your clients and your vendors will require you to have liability insurance for business in place in order to do business with them. Usually the larger your client and/or vendor is the higher the coverages and limits that can be required of you.

Business general liability insurance therefore can be used as a protection tool for all of your assets as well as a tool for entering the bidding process in gaining much larger clients and/or vendors for you. It is very common when dealing with Fortune 1000 companies that you will be required to have very broad coverages and very high limits of liability. Crafting your small business liability insurance to address all of these concerns and/or requirements up front can save you money in the long run as well is make you money in the long run by being able to land deals with larger companies.

It would be prudent in the process of the obtaining your personalized general liability insurance quote that you ask for coverages and limits of varying amounts. That way as contracts and request for proposals come your way throughout the business year you will know in advance how to price your products and services based on having multiple options of small business liability insurance quotes at hand. This should help you in the negotiation process with your clients and/or vendors to have the pricing of premiums for the various coverages and limits so that you do not contractually agree to something that you possibly cannot afford.

Your business liability insurance quotes should include limits of $300,000, $500,000, and $1 million. You should also obtain umbrella quotes for $1 million, $2 million, and $5 million. The business liability insurance may or may not have professional liability insurance unless it is desired and/or acquired by your vendors. If you have a professional liability exposure it would be wise to get the pricing for various limits up front as normally time is of the essence when you are bidding for jobs. When you get your general liability insurance quotes it is usually very difficult to obtain apples for apples proposal from various brokers. It is in your best interest to dictate the proposal format to the brokers versus allowing them to serve up their preferred format to you.

General Liability Insurance for Small Businesss can be a pain and can be pricey, but if you view it as an opportunity to protect your assets as well as to provide an open door into much larger accounts for you because you already have the insurance in place it should pay greater dividends for you in the long run.

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