Commercial insurance protects your California business from any financial loss that may result from claims of damage or injury caused to others by you or your workers. It’s important to note that this policy is not mandatory for the businesses that operate in California. However, the state doesn’t put a cap on liability law rewards. Moreover, the state courts tend to award large liability judgments. This means that entrepreneurs who own property as well other valuable assets should be wise enough to invest in commercial liability coverage plans to minimize exposure to risks. Companies in Pismo Beach, CA like Neff & Associates Insurance Services Inc. can help you get the required plan.
Is there a set limit for the commercial liability insurance a business should carry?
Each situation is usually unique, but there is a general insurance guideline. The kind of business you run or the products you manufacture can determine how much coverage you require. Your insurance company should help you assess your risks and recommend the minimum coverage for your company. If you know you operate a high-risk business, consider increasing the coverage limits. Remember that if your business is operated from home, the renter’s or homeowner’s insurance will provide a limited coverage on business losses and liability.
Several factors are considered when setting the California commercial insurance premiums. Some include the type of product or service you sell, the number of years you’ve been in business, the total number of employees you have, and your claims history.
Mandatory insurance to consider
California requires every business to carry a worker’s compensation plan as long as there are employees. Business owners are required to offer disability insurance for covering casual wage for an eligible employee in case of a non-work related injury or sickness.
California also requires all company drivers to carry minimum car insurance. In case your truck or car is used for business, it’s recommended that you buy a commercial vehicle policy.
Feel free to contact Neff & Associates Insurance Services Inc in Pismo Beach, CA for more information about commercial insurance or for a quote.