Does Your Business Have the Necessary Insurance in Place?

Fraud…injuries…lawsuits…natural disasters…theft. It’s frightening to realize how just one disaster has the potential to destroy your business! That’s why it’s so important that you have the right business insurance policies in place.

What types of insurance should you purchase? While a qualified insurance broker can help you determine exactly what’s necessary and appropriate for your particular situation, the following list explains the most common types of business insurance.

Must Have

  • Property and General Liability: Property insurance insures the assets your business owns against destruction or damage from fire, flood, theft, and other perils. General liability insurance protects your business from liability for accidents and injuries.
  • Vehicle: If your company owns and operates any motor vehicles, this type of coverage is mandated by California law.
  • Workers Compensation: Required by California law for companies with one or more employees.

Might Need

  • Business Interruption: Replaces lost revenue if you must temporarily close due to unexpected events such as vandalism, fire or equipment damage.
  • Directors and Officers (“D & O”): Protects the directors and officers of a corporation from personal liability if there is a claim against the business.
  • Key Person Life: Good to have if your business depends on the knowledge or expertise of a particular person in the company.
  • Employee Health Benefits: Provides health insurance for your employees and, possibly, their dependents.
  • Product Liability: If you sell manufactured or assembled goods, you may need this in addition to a general liability policy.
  • Professional Liability: Professionals such as lawyers, doctors, and other service providers should consider purchasing malpractice, errors and omissions (“E & O”) or other professional liability coverage.
  • Employment Practices Liability: Provides protection against wrongful termination, bias and sexual harassment lawsuits.
  • Umbrella: Works as an “umbrella” over the other policies that you carry, effectively increasing your coverage amounts overall.

In today’s highly litigious world, it’s imperative that you have the necessary insurance in place.