According to the U.S. Census Bureau, 9% of small businesses close yearly due to several concerns, including cash flow problems.
Examples of unforeseen incidents that cause business closure include property damage, income disruptions, theft, and liability claims.
Moreover, any small business in California must acquire basic insurance plans to attain legal compliance. An entity that operates without small business insurance risks legal action in case of an accident.
A lack of insurance may force a business to use its cash reserves to cover the losses, which can disrupt its operations.
That said, small businesses in California should consider working with a trusted insurance provider to meet insurance requirements.
Here are a few insurance plans that are crucial for a small business.
Workers’ Compensation Insurance
An employer is legally obliged to provide a safe working environment free of work-related hazards. They also need workers’ compensation insurance to compensate any employees with work-related injuries or illnesses.
In case of an accident or illness, workers’ compensation insurance covers the following expenses:
- Lost wages
- Immediate Medical bills such as ambulance rides, emergency room visits, and doctor’s fees
- Death benefits
- Rehabilitation costs
General Liability Insurance
A small business also needs general liability coverage to protect itself from claims resulting from bodily injury or property damage. Unfortunately, these claims can become too expensive for a small business.
If a customer accidentally falls and suffers a severe injury, e.g., a traumatic brain injury, your business may be ordered to pay hefty medical expenses or court settlement. Fortunately, general liability coverage can shield a small business from these losses.
Cyber Liability Insurance
A cyber attack can bring a business to its knees. An ambush on your data or computer systems may result in business disruptions, litigation, and lost revenue.
Since no business is immune to cyber attacks, a small business should consider acquiring cyber liability insurance.
The benefits of cyber liability insurance for a small business include data breach coverage, legal support, reimbursement of lost income, and forensic support.
Commercial Auto Insurance
Commercial auto insurance protects a small business against losses resulting from accidents caused by company cars. It covers legal fees, medical expenses, and property damage.
A comprehensive coverage shields the business from non-collision-related damages like vandalism, fire, theft, and natural disasters.
Professional Liability
Professionals like accountants, project consultants, or healthcare practitioners require professional liability coverage.
Professional liability coverage can protect your practice if someone sues you for a mistake you made during your duty.
In addition to mistakes and errors, it protects small businesses from liability arising from negligent acts, inaccurate advice, and misrepresentation.
Speak to a Northridge, CA, Insurance Professional About Your Insurance Requirements
A small business operating in Northridge, CA, faces numerous risks that can affect its operations. They may also be in trouble with authorities for operating without necessary insurance plans.
More importantly, a business owner should only pay the fair cost of an insurance package.
At Panorama Insurance Agency, we work with numerous insurers to provide the best coverage to our clients.
Contact us online or call us at 818.781-6630 to learn more.
