Regardless of what type of business or commercial operation you have, there will be certain risks involved. These potential risks may involve legal liabilities and other issues that could seriously impact you financially, and there are some things not typically covered by standard commercial insurance San Diego business owners should be aware of as they explore supplemental coverage options.
General commercial insurance won’t cover any risks specific to your profession. If you have plans to open and run a doctor’s office, for instance, you would also need medical malpractice insurance. Lawyers and accountants would need professional liability insurance to cover profession-specific risks. The type of supplemental liability coverage you’ll need will depend on the nature of your profession and business.
Full Equipment Replacement Costs
The property damage part of a standard commercial liability policy will cover costs to replace business equipment. However, the payout is usually limited to the actual value of the damaged equipment. This can be a problem if you have older equipment that has lost significant value over the years. This gap in current value and replacement cost can be covered by a full replacement cost rider.
Losses from Certain Business Interruptions
Let’s say a substantial part of your inventory is lost due to fire or flood. A standard general liability policy would cover the costs of whatever physical inventory was lost. However, you wouldn’t be covered for the loss of income from orders you’re now unable to fill. A business interruption rider would be the type of supplemental coverage to add if this is a potential risk for your business.
All businesses with employees are required to provide some type of workers’ comp insurance to cover expenses related to on-the-job injuries. But you won’t get this type of coverage with a standard general liability policy. Instead, you’ll need separate workers’ comp coverage. You may also be required to pay into your state’s workers’ compensation system, depending on the state where your business is primarily based.
Damage or Injuries Related to Commercial Vehicles
General liability insurance won’t cover any damage that occurs when employees are driving outside your immediate facility or property. For this reason, you’ll need a separate commercial auto insurance policy to cover your vehicles when your employees are using them. Again, whether you’ll need to do this will depend on the nature of your business. If you have service vehicles, for example, commercial auto insurance would be recommended.
You may need other types of supplemental or “extra” coverage as well to round out your commercial coverage. For instance, if you manufacture and sell your own products, you may benefit from separate product liability coverage to protect yourself from any potential claims specific to product safety and performance.
It’s vital to protect your business from avoidable dangers, and commercial insurance is one of the most valuable tools you can use to safeguard your business’s financial health. When it comes to commercial insurance, look to the professionals at Altra Insurance Services for sound advice based on years of experience in the insurance industry. We also offer reliable homeowners, renters, and auto insurance. San Diego residents can call one of our knowledgeable agents today at (800) 719-9972 to discuss their insurance needs.