- August 16, 2018
- Posted by: oneplacefinancial
- Category: Business Insurance
Owning a business comes with its fair share of risks from the get-go—in a way, it’s inevitable. This doesn’t mean you just accept and resign to fate. Protecting yourself, your company and your employees is a difficult feat. What you need is the right insurance plan to act as a buffer between you and a possible lawsuit.
Fortunately, to protect business owners from such legal complications there is a wide range of commercial business insurance available.
The following are five essential types of business insurance you should know about.
1) General Liability Insurance:
A dynamic form of insurance policy that is purchased by almost all businesses in California. The policy is used to protect your business against on-site injury, property damage or personal damages to third parties caused by your company’s employees or by using your company’s products or services.
2) Professional Liability (Errors and Omissions) Insurance:
Professional businesses that provide a service to clients for a fee might be at risk of professional liability. Professionals are certified and trained in a specific field of expertise. In case they fail to use the full potential of their skills, they can be charged with negligence, inaccurate advice and more.
Professional Liability policies are meant to safeguard a professional business from such liabilities and may be structured according to a specific industry. General Liability coverage usually excludes Professional Liability from its policies.
3) Business Owner’s Policy (BOP):
This is a business insurance plan that provides basic coverage for all major property and liability insurance in one bundle. BOP typically covers:
- Business Property insurance
- General Liability insurance
- Business Income insurance
- Other business insurance services
The insurance coverage provided might be altered depending on the company’s particular needs. Business owners save money by purchasing a BOP as the bundle of services may cost less than that of individual coverage.
4) Workers’ Compensation Insurance:
Workers’ Compensation insurance provides wage replacement and medical benefits to workers injured during work. In exchange, the employee relinquishes their right to sue their employer for the circumstance.
This insurance is not just important for employees but for employers as well as it protects the employer from any legal complications.
It is a form of insurance required for all employers with 5 or more employees. However, the California state law requires this insurance coverage even if employers have only one employee.
5) Commercial Auto Insurance:
Vehicles registered in the state of California are required by Law to be insured by an appropriate auto policy. A commercial auto insurance policy protects your company’s vehicles that carry employees or products.
It doesn’t matter if you have a single company-owned vehicle or a fleet, it’s best to have a commercial auto policy that covers liability, property and personal injury protection. A Non-Owned policy may be used and added to the BOP if employees drive personal cars for company business.
There are a few more types of business insurance policies such as Product Liability Insurance, Commercial Property Insurance, Business Interruption Insurance, Directors and Officers Insurance, Data Breach policies and more.
To fully comprehend the insurance plan best suited for your business, consult with professional insurance brokers. One Place Financial; Bellflower, CA has a team of experienced insurance brokers for business, home, and life insurance who will not only help you find affordable insurance policies but will assist you in financial planning as well.