Insurance coverage is designed to minimize the financial impact that common losses can have on a business. If you own a business, it is important to invest in the right type of insurance coverage that specifically covers the risks your business will face on a regular basis. Commercial insurance products can be very complex because they are customized to meet the needs of businesses in various industries. There is never truly a one-size-fits-all San Diego commercial insurance policy, and understanding which types of coverage options are available is important to build the right policy.
Types of Insurance Coverage for Different Types of Businesses
General Liability Insurance
The most common type of insurance coverage that is available to business owners in the public or the private sector is general liability. Every business has liability risks and this commercial coverage will cover the legalities that are involved when you or an employer is found negligent for an accident, injury, or damage. The policy will pay for bodily injury claims and property damage claims if you are found liable, as well as the cost of legal defense. Businesses selling services and products will need General Liability.
Professional Liability Insurance
Professional Liability insurance is commonly referred to as Errors and Omissions insurance, and pays for liability claims that are excluded from a general liability plan. If you are a consultant or you offer advice that could financially harm your customers, you have a need for E&O insurance to protect yourself and your licensure with the state.
If you manufacture, wholesale, distribute and retail physical products that are sold to the public you need to invest in insurance because you are held liable for the safety of the product. If any of the products are found to be defective, your insurance will cover the financial loss that is a result of the defect, which can be large.
There are a variety of types of property insurance depending on where you conduct your business. If you rent a commercial space, the landlord will require you to carry a commercial tenant’s plan that covers fixtures, signage, upgrades, business interruption, and business property losses. If you own the commercial space, your property coverage will also cover the listed buildings. Business owners conducting business inside their home may need to pay for endorsements on home insurance and also additional specialty policies for additional cover.
As you can see, there are several different types of commercial insurance coverage options. You may not need every option, but building a custom insurance portfolio will help you stay protected against unexpected and unpreventable claims.
For professional assistance in building an affordable, yet comprehensive insurance portfolio, that includes both building and car insurance coverage, contact an expert insurance representative at 619-272-2100.