Of the two main types of liability insurance, the comprehensive general policy is the primary form of coverage for small business owners seeking to use insurance as a last resort in their asset protection planning.
Remember, liability insurance covers damages in the form of personal injuries and property damage that the insured causes to other persons. Importantly, liability coverage does not protect property owned by the insured.
Comprehensive general liability insurance is designed to provide broad coverage for liability to other persons. Generally, it covers all liability for personal injuries or property damage caused to other persons, unless specifically excluded. Thus, in a comprehensive general liability insurance policy, it is very important to read and understand all of the exclusions, and compare your options, before purchasing the policy.
Once a small business owner understands the common elements and exclusions of this comprehensive general coverage, decisions can be made about purchasing more specialized insurance.