Opening a business brings many questions, and the very fact that you’re interested in learning more about insurance for your company demonstrates your responsibility as an entrepreneur. In most cases, you don’t need to have your business license yet to purchase insurance for your company, which means you can get started on this critical task right away. However, you should know there are certain types of insurance you may be required to carry in order to get or maintain your business license. There are also other types you should obtain to protect you from the consequences of lawsuits or unexpected events down the road.
Types of Required Business Insurance
The main type of state-mandated business insurance San Diego businesses are required to carry is workers’ compensation coverage. This type of insurance is a necessity even if you only employ one other person because the policy covers things such as an employee injury that happens as a result of the individual performing work for your business. Medical costs, paid leave, and other responsibilities you have as a business owner are typically covered under this type of insurance.
Commercial auto insurance is another commonly required type you may need if you have business vehicles. This policy is similar to the type you buy for your personal vehicle, but it’s even more important, since vehicles used for conducting business tend to have higher values.
Other Insurance Types to Consider
Some insurance types might not be required for you to operate your business, but they’re still critical. For instance, liability insurance protects your company if a lawsuit is filed by a disgruntled customer or anyone else your company does business with. If a claim is filed against your company, it could be costly to pay for a personal injury or a fine without this insurance helping to cover the costs. Data breach and cyber liability coverage is a newer type of insurance that helps you in the event your private customer or employee information is compromised.
Ways to Make Sure You Have Enough Coverage
You’ve already got enough things to deal with when you’re opening a business. Trying to figure out which types of coverage and how much to get is confusing when there’s so much at stake. You can work with your agent to identify which types of insurance are essential for your business needs. The agent can also help you determine how much coverage you need for potential issues that can arise from your normal business operations.
How to Save on Insurance Expenses
Insurance is one of those expenses that pays out well when you need it the most. While you don’t want to skimp on coverage, you may be able to cut costs by looking for deals. Many business owners bundle their insurance policies to get discounts that help them fit the right amount of coverage into their budgets.
Owning a business involves assuming certain kinds of risk, but operating without business insurance is a chance you shouldn’t take. For reliable, affordable business and commercial insurance as well as homeowners, renters, motorcycle, and auto insurance, reach out to the experienced professionals from Altra Insurance Services. Call us today at 619-474-6666 to find out how we can meet all your insurance needs.