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The various risks business owners face while operating their companies are becoming increasingly complex. Business insurance requirements vary according to jurisdiction and commercial intent, and the various types of coverage available to companies are designed to protect in different situations. The policies issued to large enterprises that operate in multiple jurisdictions may contain dozens of coverage clauses and hundreds of provisions, but the types of commercial insurance San Diego small business owners need include the following.
General Liability
This policy is the most commonly required by law in California and virtually all other states. In essence, general liability refers to the risk of business operations resulting in property damage or injury to others, and this may include products sold and services rendered.
Property Insurance
Similar to homeowners insurance, this coverage protects commercial structures along with products stocked and equipment owned. Theft and fire are the most commonly named perils, but they may also include natural disasters.
Professional Liability
In the insurance industry, this coverage is also known as errors and omissions insurance. As its name suggests, it’s focused on protecting against civil complaints filed by clients who suffered damages or injuries as a result of professional services rendered. This type of insurance is highly recommended for self-employed professionals, such as architects and translators.
Workers’ Compensation
Business owners with staff members on payroll are required to have this coverage, which covers workplace accidents, injuries, and illness. Even though employees who receive workers’ compensation can still look for legal strategies to file lawsuits against their employers, their chances of prevailing in court are greatly diminished.
Commercial Auto Insurance
Let’s say a surf shop owner decides to use his or her personal station wagon to deliver surfboards as a perk for customers. This situation effectively becomes one of commercial use during business hours, and it entails damage and injury risks. The vehicle doesn’t have to be owned by a company to require commercial auto insurance. It merely has to be operated for business purposes.
Cybercrime and Data Breach Insurance
This coverage isn’t limited to tech companies. Virtually any company operating a digital information infrastructure that stores client data should consider the inherent risks of hackers breaking into their networks, especially if the networks are operated on the premises. In the case of companies that keep data in the cloud, the responsibility of keeping records safe may not automatically fall on the data center providing cloud services.
Business Interruption Insurance
This coverage is rarely required by law, but it’s highly recommended for small business owners who are at risk of seeing their operations interrupted for any reason. With a business interruption policy, a beach hotel may be able to withstand a brutal season that requires closure because of no guests checking in at all. A portion of net income and even payroll may be covered by this policy.
Business owners need commercial insurance because operating a business means assuming certain kinds of risk, and the type of commercial insurance needed will vary according to company size and type of operation. For affordable, reliable commercial insurance as well as homeowners, renters, motorcycle, and auto insurance San Diego, residents call on the trustworthy professionals at Altra Insurance Services. Reach out to us today at (800) 719-9972 to learn how we can satisfy all your insurance needs.