The Basics of Business Insurance

 

Without exception, anyone who plans on doing business in California needs to be insured. Employees don’t have to purchase insurance because they are supposed to be covered by their bosses. Outside of this situation, self-employed individuals and companies that operate on a business-to-consumer or business-to-business basis should be protected against accidents, injuries, damages, liability claims, theft, and other unexpected situations. 

In many cases, business insurance is required to get operational permits and professional licenses. The types of policies and coverage are determined by insurance agents who review the business plan as well as current and expected operations. Here are some essentials of business insurance San Diego companies need to consider.

General Liability

It’s imperative to protect against damage and injuries that may be caused by your products, services or employees in the course of doing business. Let’s say a woman walks into a surf shop in San Diego and is injured by the fins of falling surfboards that were improperly stacked. If her medical insurance is not sufficient to cover the treatment, the general liability portion of the business insurance policy may cover the deficiency.

Professional Liability

Professional liability is a must for entrepreneurs and self-employed professionals who provide services or contract specialists to perform services on behalf of a business. Let’s say a graphic designer is retained by a surf shop to create logos. If the surf shop is sued because the new logos seem to infringe on existing copyright, the designer would be covered by professional liability. It should be noted that quite a few professional liability claims do not involve physical work performed. Instead, they focus on intellectual errors and omissions.

Product Liability

Manufacturers, inventors, and white label distributors should keep in mind their products may have the potential of causing damage or even injuries. Product liability coverage would protect against claims filed against the distributor of surf wax made in China that turns out to be a major skin irritant.

Workers’ Compensation

Workers’ compensation coverage is essential because it’s the law in virtually all states, and it provides coverage in situations that arise from workplace accidents or illness and pays for treatment and some level of lost wages. In many cases, workers’ compensation may prevent lawsuits from being filed by employees injured at work.

Cyber Risk Insurance

This used to be a specialty coverage that is quickly becoming an essential aspect of business insurance. Cyber risk insurance covers in case of losses arising from data breaches, network intrusions, and other incidents involving the work of hackers and cybercrime groups.

Business Interruption

Southern California is a region prone to earthquakes and other natural disasters. Should a business be forced to stop operating after a catastrophic event, business interruption coverage may provide a portion of projected revenue for the purpose of keeping the business afloat.

If you need to get your business insured, turn to Altra Insurance Services. We also provide affordable motorcycle and car insurance. Chula Vista residents can call at (800) 719-9972 today to talk to one of our friendly representatives.