The Golden State is full of opportunities for budding entrepreneurs and large organizations alike. As one of the largest economies in the country, California is a hub for commercial growth. This makes it a huge draw for new businesses.
At the same time, there are stringent rules and regulations in place. These are designed to protect both business entities as well as the people who live and work in the state. Here is everything you need to know about the kinds of business insurance policies you need in California.
Five kinds of business insurance policies you need in California
Business insurance policies are not only a requirement within the state of California but can protect your business in unfortunate scenarios. Within the state, there is no upper limit on how much businesses need to pay out in liability lawsuits. This means that the right combination of business insurance policies can protect your business’s finances and ensure longevity.
There are two kinds of insurance policies you’ll need to run a business in California. These are the workers’ compensation insurance and commercial auto insurance. Aside from these, you can choose from various other business insurance policies that you feel suit your business and industry. These are the business insurance policies you need to run your business in California. In addition to that, here are three more that can help your business endure and grow:
1. Workers Compensation Insurance Policy
A workers’ compensation insurance policy is legally required in the state of California. All business owners should have this policy in place. A workers comp protects your employees in case they encounter any illness or injury due to work.
If an employee slips and falls, gets into an accident, or falls sick due to their work in any way, they can find financial coverage under this insurance policy. Areas that this policy covers include providing medical costs, providing coverage for ongoing treatment, as well as restoring wages. The wages restored refer to the wages lost during the time the injured employee couldn’t work.
This insurance policy does not cover employees who were injured outside of work as a result of being inebriated or due to deliberate actions.
2. Cmmercial Auto Insurance Policy
In California, you are also required to have a commercial auto insurance policy in place. This policy protects your business should you or any employee face a road accident due to work. For businesses that transport items or even other businesses, wherever road travel using vehicles is involved, this insurance policy can save the day.
Say your employee gets into an accident while using the business’ car to perform official work. If the car is damaged in this situation, then the repair costs could be high. A commercial auto insurance policy helps you protect your finances by providing cover for the damage instead.
3. General Liability Insurance Policy
Although not required by the state, most businesses consider a general liability insurance policy as well. This insurance policy protects your business should you or an employee either intentionally or accidentally injure a third party or property.
If a person is injured or their property harmed in any way, they can apply for financial claims. The resulting legal proceedings and settlement costs could run up to thousands of dollars. To protect your business, even from accidental slips and falls on your property, you can consider this insurance policy.
4. Professional Liability Insurance Policy
California has many businesses that offer professional services. Should your business offer professional services, such as consultancy services, a professional liability insurance policy becomes important.
This is as should the client be unsatisfied with your work, and especially where the client experiences financial damage due to your services, they can sue your business. In such circumstances, you may have to pay out exorbitant amounts in claims in California. While you can’t always prevent such scenarios from occurring, even when you put in your best effort, you can still protect your business.
A professional liability insurance policy provides coverage for situations where your business is sued by your client. It applies when the client has faced financial problems due to the services offered, and covers the cost of legal proceedings and settlements up to policy limits.
5. Commercial Property Insurance Policy
If you own or are renting a business property within the state of California, then you can consider this insurance policy. Accidents can come out of the blue – natural disasters, fire or water damage, wind damage, vandalism, etc., can affect your property.
In such circumstances, having commercial property insurance in place acts as protection for your property. You can’t operate your business out of a damaged building, and this can cause business disruptions or even business closure. Protect your business, whether on a property you own or property you rent with commercial property insurance in California.
California is home to various businesses, with many of them flourishing and boosting the economy. With the right insurance policies supporting your business, you can grow and scale your business without having to be concerned about damages and claims. If you want to learn more about the kinds of business insurance policies that can help your business to thrive in California, then click here. Together with business insurance, you can ensure that your business continues to flourish and thrive despite any business interruptions or disruptions that come your way.