A business owner takes on a lot of responsibilities when starting a business and one of them is ensuring that it is financially protected against losses resulting from damage to physical belongings or liability issues. In California, a business is required to have minimum coverage to handle certain situations, but you should also have additional insurance to cover non-mandated situations. If you are going to operate a commercial business, you should have at least the following coverages to protect your business and your investment in it.
California requires all businesses to have the following:
- Workers’ Compensation Insurance: If you have, or are planning on having, employees work for you, then you must have a workers’ compensation insurance policy in force in case one or more of them are injured on the job.
- Commercial Auto Insurance: Every vehicle in your fleet and every authorized driver needs to be covered under a commercial auto insurance policy. The policy must meet the minimum liability requirements in California.
The mandatory coverages are there to protect employees and other people, but you still need protection in case you get sued, or your business property gets damaged. The elective coverages you should consider include:
- General Liability Insurance: This is required in case your product or activities end up causing harm to someone. This type of insurance is especially needed if you operate a brick and mortar location open to the public or you perform work out in public that can cause a hazard (e.g., construction site).
- Professional Liability Insurance: This type of policy protects those who perform work based on their knowledge and expertise in specific fields from lawsuits from clients who claim the professional did not deliver all the services required, or they delivered services in a negligent or mistake-ridden manner.
You need to make sure you have all the coverage you need and the best way to determine that is to perform an insurance needs assessment of your company. Call us today at the CKS Insurance Agency, so we can discuss your situation further and get you the coverage you need to be financially protected from a myriad of unseen events that could affect the viability of your company.