GUIDE TO INSURANCE FOR SMALL BUSINESSES
A GUIDE TO COMMERCIAL INSURANCE FOR SMALL BUSINESSES
Every business organization deals with a certain level of risk. While most businesses have mitigation strategies embedded in their daily mode of operation, there are still a lot of external factors that they can’t control. Examples of risks that California businesses commonly face today include property damage, workplace injury, or even cyber-attacks.
Whether your organization is a multinational corporation, a local enterprise, or a not-for-profit, getting your business insured is essential. In this article, we talk about why that is. We also give a rough guide on the different kinds of commercial insurance coverage that may be relevant to your business.
Why Your Business Needs Commercial Insurance
Commercial insurance protects your business from potential liabilities and accidents that could financially ruin your organization. Regardless of your business size, industry, or trade, you must be wary of the kinds of risks your enterprise is susceptible to.
In particular, small businesses and micro-enterprises are vulnerable to financial risk. Most of these businesses don’t have a lot of cash flow when they’re first starting out. Unfortunately, this means that any disruption in day-to-day operations can put such businesses in dire straits. For example, such disruptions include things like the breakdown of specialized equipment, property damage and loss of stock due to flooding or vandalism, or compromised customer relationship management systems due to hacking.
Commercial insurance helps small businesses in California pull through in the event of such unfortunate business disruptions. Depending on the type of business you have, certain kinds of commercial insurance coverage might be more suited to your needs. In the following section, we’ll go through some of the most common types of coverage:
Commercial Auto Insurance
If you run a delivery service or your employees need to drive to remote sites to perform a service, having vehicles that are in good working order is a major asset to your business. However, road accidents can happen, and you need to make sure that your vehicles are insured to quickly recoup expenses for car repair or replacement.
Business Interruption Insurance
Temporary disconnection to utilities like electricity, water, and Internet connection will interfere with your business’s daily operations. You may not even be able to open your business for the day due to these disruptions, thus forfeiting profit. Getting coverage for business interruption can help you recover the losses your business has incurred during this period.
Equipment Breakdown Coverage
If you’re in the trade industry, it’s likely that your business uses specialized equipment. Repairing or replacing old equipment can place a heavy financial burden on your business. Equipment Breakdown Coverage will help you pay for any necessary repairs and part replacements.
Workers’ Compensation Insurance
The success of any business hinges on its employees. If your workers are happy and healthy, chances are they’ll be more effective and diligent in doing their jobs, benefiting your business. However, workers can be vulnerable to injuries in the workplace.
As a responsible employer, your business should have Workers’ Compensation Insurance to pay for employees’ medical treatments should they have an accident at work. Getting Workers’ Compensation Insurance will help you cover such expenses.
If you need guidance in picking the right coverage for your business, We have a ready team of financial advisers that can assist you. Get in touch with our Northridge, CA Panorama team today.