Every business needs business insurance, but there’s a sea of information out there regarding policies and it can be difficult to wade through the fluff to find what you need to know.
We’re providing this straightforward guide to help business owners and landlords decide which coverage options are best for their business. Here are the most common types of business insurance coverage options in California, including a bit of information about each one to help you decide whether it’s right for your commercial property.
Commercial Property Insurance
Commercial property insurance covers any property you use for your small business. This might include an office, a retail store, a warehouse, or any other commercial property.
This type of insurance covers most forms of damage, from natural disasters to theft or vandalism. If your property is more vulnerable to certain types of damage, however, you may need additional coverage.
Workers’ Compensation Insurance
Workers’ compensation insurance is a legal requirement for any California employer with one or more employees who are not also owners of the company. (Sole proprietors are exempt from this requirement.)
This insurance covers medical payments and expenses when an employee is injured in a work-related accident, which happens more often than you may think, even in an office setting. These accidents include everything from minor injuries that require medical attention to vehicle accidents and even death.
General Liability Insurance
General liability coverage protects a business from financial expenses in relation to other people or businesses. This may include property damage, medical expenses, accidents resulting in personal injury, libel, slander, and legal costs arising from a lawsuit.
Professional Liability
Professional liability insurance is similar to general liability insurance, but it has one key difference. This type of coverage is for claims of negligence that don’t necessarily result in physical damage. For example, if you offer professional advice that causes financial hardship for your client, they may sue you for financial damages. Professional liability insurance covers this expense if you’re found liable.
Business Owners Policy (BOP)
A business owners policy (BOP) is one policy that combines several types of business insurance, such as property, general liability, etc. The policy is designed to fit the specific needs of the business.
Commercial Auto
If your business owns or uses vehicles for commercial activities, you’ll need commercial auto insurance protection for vehicle or property damage, bodily injury, legal costs, etc. This covers the vehicle, inventory or material inside the vehicle, and employees involved in the accident.
Which Business Insurance Is Right for You?
When it comes to insurance, there are a variety of small business coverage options to consider. We recommend starting with a Business Owners Policy that’s tailored to fit your needs and includes Commercial Property Insurance as well as General Liability Insurance.
Many employers will also need Commercial Auto Insurance and Workers’ Compensation Insurance, but your insurance agent can review your options and make personalized recommendations.
For more information, visit our website or contact Bethany Insurance Agency at (909) 414-2281. You can also use our online form for a free quote.
