All You Need to Know About Getting Business Insurance in California
Business insurance is an essential investment for any business, regardless of its size or industry. In California, a few types of business insurance are required by law, but many others are recommended.
Here is an overview of all you need to know about getting business insurance in California.
What Types of Business Insurance Are Required in California?
California business insurance requirements vary based on the type of work you do and other factors. However, one type of coverage you are required by law to carry if you have employees is workers’ compensation insurance.
A workers’ comp policy covers employees who are injured or become ill on the job. It can pay for their medical bills, lost wages, etc. And if an employee dies at work, it can provide a death benefit to their surviving family members.
Other Types of Business Insurance To Consider
In addition to workers’ compensation insurance, several other kinds of business insurance are recommended for businesses in California and may be required. These include:
- General liability insurance. This type of insurance covers your business for damages that you cause to other people or property. For example, if a customer slips and falls at your office, your general liability insurance can pay for their medical expenses and any property damage.
- Professional liability insurance. Also called errors and omissions insurance or E&O, this policy covers your business for claims of negligence or mistakes made in providing your professional services. For example, if you are a lawyer and make a mistake in a legal document that harms your client financially, your E&O insurance could cover costs related to a lawsuit they file.
- Business owners policy (BOP). This policy combines general liability insurance with coverage for business property, such as buildings, equipment, and inventory, if it’s damaged or stolen.
- Commercial auto insurance. Commercial auto coverage is required in California if your company owns or leases vehicles for business purposes. It protects the business from liability arising out of their use and also covers damage to them.
- Cyber liability insurance. This type of insurance covers your business for damages caused by a data breach or other cyber attack. This includes the cost of notifying your customers about the breach, researching the incident, etc.
- Umbrella insurance. Liability insurance policies have a maximum amount they’ll pay for a claim. Umbrella insurance can cover—up to its limit—the difference between what your company owes due to a lawsuit and your liability policy limit.
How Much Does Business Insurance Cost in California?
The cost of business insurance in California will vary depending on multiple factors, including the type of insurance you need, the size of your business, and your location. In general, however, business insurance is relatively affordable. For example, you may be able to get hundreds of thousands of dollars in protection for just hundreds annually.
How to Get Business Insurance in California
When shopping for an insurance policy in California, use these tips to ensure you get the right coverage at an affordable price:
- Get quotes from multiple insurance companies.
- Compare the coverages and limits of each policy.
- Read the policy carefully before you sign it.
- Make sure you understand the deductible.
- Ask about discounts you may qualify for.
- Review your policy annually to make sure it still meets your needs.
By following these tips, you can get the business insurance coverage you need to protect your California business.
