When it comes to shopping for small business insurance in California, it’s important to choose coverage that aligns with the specific needs of your industry and the size of your business. There are several common types of small business insurance that you may want to consider, including general liability insurance, professional liability insurance, and workers‘ compensation insurance.
General liability insurance is a crucial form of coverage that protects your small business against claims of accidental injuries to others or damage to someone else’s property. This type of insurance also covers advertising injury, copyright infringement, and reputational harm claims. In the event of a claim, general liability insurance will pay for legal costs, such as attorney fees, as well as any judgments or settlements that may arise.
Professional liability insurance, also known as errors and omissions (E&O) insurance, is another important type of coverage for small businesses in California. This insurance pays for your legal costs in the event of claims of mistakes in your professional services, even if the claim is unfounded. For example, if a client alleges that your tax service caused them financial harm, your professional liability insurance will cover your legal expenses, judgments, and settlements.
Workers‘ compensation insurance is mandatory for businesses in California that have one or more employees. This type of insurance covers your employees‘ medical bills, lost wages, and other expenses if they sustain injuries or illnesses as a result of work-related tasks. Failure to have workers‘ compensation insurance in California is considered a criminal offense, so it’s essential to ensure that your business is properly covered.
In addition to these common types of small business insurance, you may also need additional coverage to address industry-specific risks. A business owners policy (BOP) is a good starting point, as it bundles general liability insurance with commercial property and business income insurance. This can provide a solid foundation of coverage for your business at a more affordable rate than purchasing each type of insurance separately.
Some other types of insurance that you may want to consider adding to your coverage include commercial property insurance, business interruption insurance, course of construction insurance, commercial auto insurance, commercial umbrella insurance, cyber liability insurance, directors and officers (D&O) liability insurance, inland marine insurance, product liability insurance, and technology errors and omissions insurance. Each of these types of insurance can help protect your business from a variety of risks and liabilities that may arise in the course of your operations.
In conclusion, when shopping for small business insurance in California, it’s important to carefully consider the specific needs of your business and industry. By choosing the right types of coverage and ensuring that you have adequate protection in place, you can safeguard your business against potential risks and liabilities, giving you peace of mind as you focus on growing and managing your business.