Many business owners believe that business insurance is really a luxury for more established companies. Even though it is true that business insurance does take a piece of your company’s budget, it is a cost every business—no matter the size, industry or length of time in business—should plan for. Why is it so important?
General and Professional Liability
A general liability insurance plan covers various aspects of your business. There is premises liability coverage, which covers injuries on business premises, or completed operations and products coverage for injuries from product-to-customer or worker-to-customer. Then, there’s advertising liability coverage, which is coverage for injuries resulting from any type of false advertising, and damage liability coverage for when you cause any damage to rented premises. Lastly, professional liability coverage focuses on protection in the case of malpractice, errors and omissions or negligence arising from your profession.
Business insurance coverage can prevent a business from closing its doors as a result of catastrophic loss. Floods, fires, tornadoes and hurricanes have shuttered a number of businesses permanently. When a business has insurance coverage against these kinds of losses, these closures are often only temporary. Companies should always think about business interruption coverage to ensure continued cash flow if they have to suspend operations as a result of a covered event.
Aside from the financial and protective advantages that business insurance can provide, it is also legally required of most businesses. If a small company has workers, it's required to have workers compensation insurance. If a business does not have this kind of coverage, it could face fines and be required to pay money to cover accidents incurred by employees at work. Also, depending on the state, companies are sometimes required to have disability and unemployment coverage.
Protection Against Claims of Negligence
Whether you operate a business that offers a service or you are customer-facing and offer your expertise and experience to the consumer, professional indemnity service needs to be in place to serve as a safety net should there ever be any kind of claims made against your business. It doesn’t matter whether you’re employed as a hairdresser or a business advertising consultant; customers can make a claim against your business if they believe you have offered them the wrong advice or provided them with the wrong service.
Protection Against Damage or Theft
Contents insurance is also essential. Office contents coverage helps ensure that your property and equipment is covered against occurrences of accidental damage and theft. It may also cover contents if they are damaged or stolen outside of your company premises, such as on a business trip.
Get informed on business insurance today. Contact Reynolds Insurance Services, Inc. to discuss California business insurance.