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Tim Feddersen from Gas Bar Insurance Services discusses the importance of understanding franchise agreement insurance requirements. He emphasizes the significance of general liability insurance, which protects businesses from liability related to incidents on their premises or from their products. Typically, policies cover $1 million per claim and $2 million aggregate per year, but he recommends increasing coverage to $2 million per claim and $4 million aggregate, as the cost difference is minimal and can be crucial in serious injury cases. Additionally, he notes that every business should have some form of auto coverage.
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