Insurance is one of the costs of running a business, and you may not appreciate its value until you really need it. In California, your company is required to follow laws established by the state and federal governments regarding the type and amount of insurance you must carry before you’re allowed to legally operate a business. Complying with these laws helps you avoid having your business be fined or shut down, and it protects you in the event of a lawsuit. By understanding the legal and professional obligations for obtaining commercial insurance, San Diego business owners can protect their businesses and employees should the unforeseeable happen.
Types of Commercial Insurance that Are Required
Your San Diego business is required by law to carry workers’ compensation coverage, which protects your company from financial damages that could result if an employee is found to be wrongfully fired from your company or sustains a serious injury that prevents him or her from continuing with his or her normal paid duties. If your business owns any vehicles, you’ll also need to carry commercial auto insurance that covers damages if one of your employees has an accident while driving your vehicle on the clock.
Optional Types of Insurance to Consider for Your Business
You should also know that some types of insurance may not be legally required but are nevertheless essential for helping during other types of situations. For instance, commercial property insurance protects your company’s real estate and other assets. You can use this insurance to pay for repairs or to replace property that’s damaged by things such as a fire or theft.
What Commercial Liability Insurance Covers
Commercial general liability insurance covers many potential things that could happen during the course of running a business. This type of insurance can help if someone suffers a personal injury on your property and tries to sue. For instance, you could expect this type of insurance policy to kick in if a visitor to your office building was hurt due to a faulty piece of equipment no one knew needed to be repaired. Essentially, this type of insurance can help if your business is sued by someone else or another corporate entity for things such as slander, bodily injury, and other types of damages.
How to Determine How Much Coverage Your Business Needs
Commercial insurance and the appropriate levels of coverage are tricky to navigate on your own because they involve many different factors. For instance, a small business with very little property may need less coverage than a large corporation with billions of dollars in assets. You may also need to consider factors such as the company’s risk of having an event happen that could result in a lawsuit. Since having proper coverage could make the difference between your company staying in business and being shut down, it’s best to work with your insurance agency to make sure you have the right type of policy to fit your company’s needs.
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 619-474-6666 to learn how we can satisfy all your insurance needs.