• Worker’s Compensation Insurance: From the moment you hire anyone, you must provide them with workers compensation insurance. This is basically a form of California business liability insurance that protects your business in case one of your workers should be injured on the job.  When buying this insurance it is important to make sure that it also covers the legal costs of defending your case and not just the cost of a possible settlement. (Often the legal costs are the most damaging.)
• Disability Insurance: Similar to worker’s compensation, disability insurance is another kind of business insurance California requires by law. This kind of insurance covers workers if they should become injured or disabled in non-job related activities.
• Vehicle Insurance: If you own a vehicle that is part of your business, special vehicle coverage is the third kind of commercial insurance California requires in order for you to operate company vehicles.

Necessary Forms of California Commercial Insurance

There are also some forms of commercial insurance and business liability insurance California does not require by law but that it is simply foolish to ignore. No matter how small you are, certain kinds of small business insurance California doesn’t require are still a must if you don’t want to tempt fate.

Here are these key forms of commercial insurance California business owners must have:

• Property Insurance: Even if you do not intend on rebuilding your property in case of a natural disaster or fire, property insurance is one kind of California small business insurance that you might find a necessity because other businesses will demand it.  Many equipment vendors, for example, will not allow you to rent equipment if you do not have property insurance to protect it.
• Commercial Liability Insurance: California doesn’t require, but you are well advised to get the forms of liability coverage that are appropriate to your business.  If you own a restaurant or bar, for example, getting liquor liability coverage is highly recommended since it covers aspects of your business that a regular California business liability insurance plan is likely to omit, such as coverage for what happens to your clientele after they leave your premises (for example, should they be involved in a drunken driving incident).

Figuring out What Kind of California Business Insurance is Right for You

Sorting through your choices of business insurance in California can be a mind boggling experience.  In the first place, you have to figure out what kinds of insurance are required for you in your city and in California and at what levels.  But then, your individual industry may have a special set of requirements as well. Bars and restaurants, for example, will sometimes require liquor liability insurance, while construction businesses may require special California business liability insurance in order to bid on certain government jobs.

Further complicating matters is the fact that many kinds of insurance partially overlap.  Thus, some kinds of property insurance will also have a certain degree of liability insurance as well.  On the other hand, some insurance policies which are designated as “umbrella” policies (such as business owner’s insurance) turn out to have far more leaks than you would expect.

This is why it helps to have a California business insurance specialist with which to discuss all the ins and outs of a particular California business liability insurance policy.  It is not just about finding the cheapest California commercial insurance quotes—though we are certainly dedicated to finding you the most affordable policy for your particular circumstance.

It is also about finding you the California business liability quotes which offer you the best coverage for your business. A cheap policy that doesn’t actually protect you from the most likely threats to your business will leave you vulnerable to forces beyond your control.

How Much Insurance Do You Require?

The other question that requires careful thought, is the question of how much California business insurance you require; or to put it another way, for how much should you be covered? Like all kinds of insurance policies, thinking this through requires a careful consideration of how much you have at stake in your business and to what extent you want to go to protect yourself.

In some cases, it may be simply too expensive to cover yourself against a particular threat. In some cases, for example, you may not be able to afford Business Income Insurance (insurance that covers your salaries and similar business expenses while you’re rebuilding after a disaster or fire).

We will help you sort through these considerations and decide what kind of California business insurance is right for you.

We will also inform you about actions that you can take to lower your insurance premiums.  In many cases, for example, California business insurance providers offer you the opportunity to lower your premiums by taking certain precautions.  Liquor liability insurance rates, for example, might be lowered for bars that require their bartenders to attend special training for how to deal with drunk patrons. Property insurance rates might be lowered if you install security cameras or renovate your fire detection equipment as well.

Some insurance providers might even subsidize some of these opportunities themselves since this allows them to better monitor the effectiveness of their efforts.

As you can see, trying to sort through the plethora of business insurance policies can require a great deal of time and effort.  At Incorporated Insurance Services our agents will help walk you through the process so that you can make a clearer decision and save money while you’re at it.