The types of commercial insurance policies available to California business owners are almost as numerous as the different kinds of businesses in the state. For example, the insurance policies an HVAC company needs are incredibly different than the ones needed by a CPA. Only two insurance policies are required for all businesses in California: workers’ compensation and commercial auto insurance.
Workers’ compensation is generally required of all California companies with at least one non-owner employee. This insurance is designed to pay for illnesses or injuries that occur as a result of on-the-job work. Commercial auto insurance is typically required for vehicles owned by a company.
Besides those two policies, here are some others you should strongly consider getting:
1. Professional liability insurance. Licensed service providers, like physicians and accountants, need this coverage. It is not limited to licensed professionals who are often subject to multimillion-dollar lawsuits, though. Any business owner who provides consulting services or professional services needs this coverage. Professional liability policies are often called “errors & omissions” coverage. It will help cover you against failure-to-perform and negligence allegations.
2. General liability insurance. This is a wide-ranging policy. General liability insurance guards against financial loss resulting from bodily injury, property damage, advertising injury (libel or slander), and other losses suffered by third parties. Some companies need general liability coverage more than others, but just about every company needs some form of this policy.
Take, for example, a tree removal service. Even one misstep from an employee could result in serious property damage or injury. A general liability policy can also protect business owners from monetary losses stemming from lawsuits.
3. Home-based business insurance. Sure, you have homeowners insurance for your house. There’s no guarantee that this coverage alone would cover any losses to work equipment or inventory you keep in your home. This policy is usually a “rider” on an existing homeowners insurance policy.
4. Property insurance. If your company has a brick-and-mortar location or inventory, you need to purchase a policy that protects those physical assets. Commercial property insurance protects against financial losses stemming from fire, theft, and some other natural events. Most likely, you will need other policies to cover things like floods and earthquakes.
Your Business May Need Other Policies
This is just a preliminary list. There are many other types of insurance policies that California business owners may need to protect their companies from reasonably foreseeable financial threats, and having a policy may not be enough if you don’t keep a close eye on the provisions and exclusions it contains. An experienced business attorney can help make sure your business is sufficiently protected. Reach out today to learn more about how IGC can help.
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