Commercial Insurance for California Businesses

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There are almost four million businesses in California and 99.8% of them are small businesses. Small businesses are the drivers of growth and provide half of the total jobs in the state by employing nearly three million people. An agent from a commercial insurance Glendale agency helps business owners manage risks experienced by these businesses.

Risks for Small Businesses

Three-quarters of small businesses are underinsured. About 40% do not have any insurance at all. This risk exposure is severe because one in three businesses will face a serious financial challenge every year that would normally cause an insurance claim.

An insurance industry survey asked small business owners if they had any serious financial challenges in the previous year and what caused them if they did.

The main risks experienced by small businesses include:

  • Complaints from Customers or Clients
  • Contract Disputes
  • Employees’ On-the-Job Injuries
  • Theft or Burglary
  • Fire Damage
  • Storm Damage
  • Property Damage
  • Customers’ Injuries
  • Injury or Damage Caused by Products

Commercial Insurance Protection

Commercial insurance is a general category of many types of insurance. Here are the types of commercial insurance Glendale businesses may need to consider.

Workers Compensation

Any business operating in California with one or more employees must carry workers compensation insurance. This is a no-fault insurance program, paid for by the employer, which covers work-related accidents, injuries, illnesses, disabilities, and deaths.

General Liability Insurance

Every business, including home-based businesses, should have general liability insurance. This covers things like customers who are injured on the business property or property damage caused to others by the business operations.

Commercial Property Insurance

This insurance is necessary if the business owns or rents any property. It is also needed insurance protection for a home-based business. A typical home insurance policy does not normally include protection for any commercial operations. Also, if a person rents out a room in their home to others, commercial property insurance is usually needed.

Commercial Vehicle Insurance

Any business use of a vehicle, even if only occasionally, requires commercial vehicle insurance.

Professional Liability Insurance

This insurance is needed by any licensed professionals including real estate agents, pilots, cosmetologists, spa operators, massage therapists, and many more. This is also called “malpractice” insurance for health care providers and attorneys. It is called Errors and Omissions (E&O) insurance for professionals in the finance sector such as accountants, stockbrokers, and financial planners.

Business Interruption Insurance

This type of insurance helps pay the ongoing bills if the business cannot operate due to circumstances beyond the owner’s control.

Special Risks Insurance

Insurance can be custom-designed to cover special risks like terrorism and cyber attacks.

Umbrella Insurance

Umbrella insurance extends the policy limits of other insurance policies. It may cover things not covered elsewhere such as defamation, sexual harassment, and discrimination lawsuits. It may also cover legal expenses.

Conclusion

Start with a commercial insurance review conducted with the help of an agent. Your agent will analyze the business operations for risks and review the business plans for starting a new business. Then, the agent will give professional advice about the types of commercial insurance coverage that will provide adequate protection.

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