Investing in a business insurance policy should be a priority because your insurance coverage minimizes the financial risks associated with liabilities, losses and unexpected happenings. With all the different available options in the marketplace, business owners may struggle as they try to find the proper insurance policy for their needs. Regardless of your business status (start up, expanding, hiring new employees…), the following are some variables to consider while trying to determine the right insurance coverages for a business:
- Business structure
- Business activities
- Physical location
- And more
The following includes a list of the most common available types of commercial business insurance:
- General liability insurance that usually covers medical costs and legal fees associated with accidents or injuries.
- Product liability insurance that protects against financial loss and applies in cases of wholesale, distribution, retail or where products are manufactured.
- Professional liability insurance that provides coverage against errors, malpractice, negligence and applies to the service industry such as business consultants, physicians, personal trainers…
- Commercial property insurance covers property damages related to fire, smoke, weather… and it could include lost income, business interruption, physical structure, equipment and more.
If you have employees or plan to hire, California state law requires you to invest and pay for certain types of insurance including:
- Workers Compensation Insurance that is usually provided through a commercial insurance company or for large corporation’s on a self-insured basis. Click HERE for more information on California’s Worker Compensation requirements.
- Unemployment Insurance Tax which is a requirement in order to pay unemployment insurance taxes as determined by the specific state where your business is registered.
- Disability Insurance Tax– is a mandatory insurance if you are located in California, Hawaii, New Jersey, New York, Puerto Rico or Rhode Island.