Business Insurance in California

Commercial insurance in California provides various business insurances and types of industrial coverage, such as business interruption, workers' compensation, property and liability insurance, health and life, and professional indemnity policies. Commercial insurance can help protect a California-based company and its employees from various financial issues caused by claims related to injuries, losses, and damages.

Here are the most common insurers on the California business insurance market:

If you are looking for group health insurance, these are the most common health insurers offering health plans for small businesses.

Make sure to discuss your option with a California-licensed insurance agent, who can help you sort through the list and identify the insurers and plans that fit your business insurance needs the best.

All types of businesses can use commercial insurance to protect their assets and personnel from unexpected losses, including small and medium-sized businesses (SMBs) and large corporations. California businesses employ nearly 16 million people, with over four million small businesses accounting for around 7.2 million of those employees. Every California business needs insurance coverage, whether its insurance on business assets, corporate healthcare, life insurance for business, company liabilities insurance, or a legal or contractual requirement.

The largest business sectors in California are:

• Professional, Scientific, and Technical Services
• Healthcare industry
• Retail industry
• Lodging industry
• Food Service industry
• Construction industry
• Services and Tradesmen
• Real Estate industry
• Wholesale trade industry
• Finance
• Manufacturing
• Entertainment and Arts
• Transportation
• Warehousing of Goods

While the California Department of Insurance (CDI) and the California Insurance Commissioner regulate and set the rates for commercial insurance in the state, you should consult with a California-licensed commercial insurance agent to find out what commercial insurance is right for your organization based on your business’s specific needs. After the analysis of business insurance needs your agent can advise you on the best commercial insurance companies and policy types that fit the identified needs at the most optimal cost.

How Much Business Insurance Coverage Do I Need in California?

A business insurance policy is a type of protection that business owners can provide their business against various types of claims that can arise while carrying out their work. Commercial insurance companies offer different commercial coverages that can protect businesses from the costs associated with medical expenses and legal actions. Businesses need to buy California business insurance that meets their needs and would cover all their businesses’ potential risks.

Before looking for a business insurance policy, you must fully understand the protection you need to cover your business against unforeseen events. Here are some steps to help you determine the right amount of business insurance coverage for your company.

Know the type of business you have: Even though you can not predict everything that will happen, you can still assess the amount of commercial insurance coverage you need to cover your business. You can determine the extent of coverage you need by answering the following key questions:

• What type of business do you run?
• How big is your business?
• Who are your customers?
• Where is the locality of your business in California?
• What type of natural disaster is your business prone to?
• What kind of risks is your business facing?
• How many employees do you have?
• What kind of building do you use for your business?
• Do you have a sole proprietorship or small and medium-sized business?
• Do you have a large corporation?
• Do you have company vehicles?

If you can answer the questions above, it will help you determine the type of coverage you need to get. For instance, if your business is situated in a flood-prone area, you may need to purchase specialty insurance coverage like flood insurance. Also, if you have company vehicles, you need to buy an auto insurance policy with a minimum of $30,000 and $15,000 for bodily injury and $5,000 for property damage, respectively. Similarly, you may need to purchase liquor liability coverage to protect your company if your business sells liquor in California.

Likewise, depending on your business type, if it is a large corporation with 50 employees or more, you are required to carry workers’ compensation insurance for them. Finally, if your customers need to visit your place of operation, then you may need premises liability insurance to cover any accidental injury or property damage caused by certain conditions on your premises or business operation.

Before you start shopping for commercial insurance in California, it is important to keep in mind that there are areas where your business could expose you to more liability. The more risks your business takes, the more coverage it will need. As your business grows, you may also need insurance to cover the broader range of risks that come with it by getting higher liability limits. For example, you may need to purchase a commercial umbrella liability to cover certain risks that are excluded from your company's commercial policy.

Find a coverage that matches your business size: Before you start looking for insurance, it's important that you first assess your company's size. Usually, you will need to consider your company's financial situation, total sales, earnings, and the number of employees.

• Home-based businesses: Most home-based businesses usually have one or two employees and do not have much revenue. This does not mean they should not be insured. For instance, if your business is located within the California Fire Hazard Severity Zones Maps, it is advisable to insure your business with not just homeowners insurance but also commercial insurance coverage like commercial liability and property insurance.
• Small businesses: If you own a California business that makes less than a million dollars annually, you are most likely a small business owner. Some insurers consider companies with fewer than 50 employees to be considered small businesses. Insurances for a small business usually comes as a standard business owners policy (BOP) and it is typically only available for companies with less than a hundred employees and annual revenues of up to $5 million. While you can customize a policy, many insurance companies offer standard small business insurance liability plans that can help protect your company from various risks.
• Medium-sized businesses: If your small business is thriving and growing, it may be considered a medium-sized business. Although the exact sizes of these types of businesses vary, most companies with annual revenues of $10 million to $1 billion can be considered medium-sized. Insurance companies can provide particular policies for medium-sized businesses that combine liability and property coverage. Consider a customized policy if your company has locations in multiple states or owns expensive equipment.
• Large businesses: Large companies have many risks and complex operations, which require specialized insurance to meet the needs of a company. Also, large companies must carry workers' compensation insurance for their employees. In the end, most large businesses get commercial insurance coverage, including general liability, property, life, and specialty insurance.

Determine your business exposure to risk: Before you start thinking about the type of insurance coverage that best suits your needs, you must know the amount of risk you're taking. For instance, while commercial liability insurance can provide you with a lot of protection, it won't cover all the claims coming your way. If you need to protect your business from various risks, such as fire damage, professional liability, and cyber-attacks, consider adding endorsements to your existing policy.

A business owner's policy is a good option if your company is low-risk. It can provide you with a variety of insurance coverages, such as general liability. However, if your company has more liability, you might need to add additional coverage. If this is the case, you can use an umbrella policy to extend your coverage limits.

Your landlord may require general liability insurance if you rent or lease office space. This type of insurance covers the legal costs associated with injuries to clients or third parties and property damage. Usually, rental contracts have a limit of $2 million on the aggregate and a minimum of $1 million per occurrence. Also, potential clients may want proof that you have errors and omissions insurance for your llc business before getting into business with your company. E&O insurance allows you to provide financial compensation to clients who have been hurt by a professional mistake made by one of your employees.

Coverage limit: If you are a business owner, it is important that you have the proper amount of coverage to protect your business against potential legal and financial liability. Below are examples of average limits for various types of commercial coverages when determining how much you need:

• General liability insurance: Most llc small business insurance have at least $1 million limit per occurrence and a $2 million aggregate limit for their liability..
• Errors and omissions insurance: Most businesses have E&O policies with a $1 million aggregate limit and a $1 million per occurrence limit.
• Commercial Automobile Liability: Businesses utilize a Combined Single Limit (CSL) to create higher limits for bodily injury and property damages coverages, including per occurrence limits. Typical commercial auto insurance CSLs in California are $500,000 or $1,000,000
• Cyber liability insurance: Most businesses purchase a cyber liability policy with a $1 million limit.

If your business has high revenue and risks, consider extending your existing commercial insurance policy with business umbrella insurance. This type of insurance will allow your company to cover more expensive claims.

How much business insurance you need depends on your business type, the business risk exposure, and the business-specific needs. Understanding your company's needs will help you determine which type of commercial insurance policies are right for your business. A California-licensed commercial insurance agent will be able to evaluate the specific needs of your company and determine the different rating factors that may influence the how much business insurance coverage you need. The agent will also help you:

• Get a commercial insurance quote online that best suits your needs.
• Review your business's existing policy to ensure adequate coverage for your current business needs. If your coverage will not be enough to protect your business, the agent will help you shop around for a new one that is suitable for your needs.
• Research commercial insurance plans that suit your business's specific needs and find different discounts that can help you save on premium costs
• Navigate through the various options available to you
• Explain the differences between the different commercial insurance policy coverages that will be beneficial to the business.
• Explain any policy language that may be too ambiguous.
• Assist with the application process
• Navigate through the claims experience when there is a covered loss

Why Do We Need Commercial Insurance in California?

Insurance protects your business. Commercial insurance is vital to any company's operations, as it helps cover the costs associated with damages and liability claims arising from covered losses. Without this insurance, business owners might have to pay out-of-pocket for legal fees and other damages. Aside from protecting their businesses from certain risks, such as fire and theft, commercial insurance can also help business owners avoid financial crises.

Businesses can purchase different commercial insurance coverages that suit their specific needs and risk exposure. Commercial insurance is needed in California for the following reasons:

• Liability coverage: Liability insurance for business protects a company from paying out-of-pocket for employee and customer liability claims. Having the right coverage of company liabilities insurance can help businesses avoid financial problems arising from covered risks. For example, the Contractors State License Board (CSLB) reports that approximately 300,000 contractors are licensed in the state. Each of these contractors needs to possess the basic liability insurance coverage and other relevant business liability insurance policies to protect against liabilities like property and bodily injuries while working and unintentional property damage. For instance, an insured contractor carrying out building construction or home improvement repairs will be able to cover bodily injury or property damage liability incurred while carrying out the job . According to the U.S Bureau of Labor Statistics, a total of 4,764 fatal work injuries were recorded among contractors across the United States in 2020, with California recording more than 460 fatal work related injuries.

• Employee protection: Workers compensation is a government-backed program that provides various benefits to workers injured on the job. It is a type of disability insurance that provides financial support when a worker cannot work because of injuries sustained while on the job. Having worker’s compensation insurance helps reduce the effect of an on-the-job injury on your employees. Employers must provide workers' compensation benefits to their employees under chapter 4 of the California Labor Code. The California Labor Code applies to private businesses with more than one employee.

• Aids faster deal closing: Having relevant business insurances can help companies close deals much faster. Financial institutions and credit facilities will usually require active commercial insurance coverage on a business before working with it. Also, businesses can more easily get property leases or rentals if they have commercial insurance in place. This is because their lessors feel more secure in the event of a covered risk.

• Business credibility: Having proper commercial insurance helps your business establish a solid and credible reputation because it shows your contractors and customers that you take risk management seriously and have the best possible protection when an unforeseen event occurs.

• Coverage for natural disasters: Many businesses in California are located in coastal counties. Over the past century, the sea level has risen by about 8 inches. The sea level is expected to rise by up to 55 inches by 2100. This could increase flooding, affecting approximately 500,000 people and $100 billion in infrastructure. Business establishments can purchase specific commercial disaster insurance to protect against financial losses.

• Coverage for private assets: Commercial insurance helps protect the personal assets of businesses, including publicly traded companies and not-for-profit organizations. It can help financially protect them from losses caused by property damage.

Contact a California-licensed commercial insurance agent to find the ideal coverage from the best commercial insurance company for your business. The agent can help you find the best possible commercial insurance quote online for your business after assessing its needs.

How Does Commercial Insurance Work in California?

In the fourth quarter of 2018, California recorded over 47,500 new business establishments, which generated over 126,000 new jobs. A California business insurance policy can provide a company with the necessary protection in the event of various risks, such as employee injuries, property damage, and auto accidents. You can file a claim when a covered risk occurs in order to get a payment from your insurer. When you file a claim, your insurer will investigate the claims through an adjuster. After assessing the damage to your business, your insurance company will then pay a settlement amount if your policy covers the loss. To find the best commercial insurance coverage, consult with a California-licensed commercial insurance agent to determine your business’s potential risks, know what commercial policies you need, and shop around for the most cost-effective coverages.

A commercial insurance policy has various components, including:

• Policy limit: This is the maximum amount the insurance company can pay out during a given period. You can have a per-occurrence or total policy limits. The per-occurrence limit is the total amount the insurer will pay for a particular incident. A combined limit is a single limit that can be used to cover various types of insurance policies. Before you sign a contract, ensure you have the necessary information to understand the terms of the policy as it relates to the commercial coverages in your insurance policy.
• Premium: When you buy a commercial insurance policy, you must pay the premiums. Premium is the amount you pay monthly or annually to the insurer to maintain your commercial insurance policy. An insurance company considers your business's risk exposure and claim history to determine your premium. Paying your commercial insurance premium helps protect your business from the effects of a covered risk. If you don't pay the insurance premium on time, your coverage might be canceled.
• Exclusions: Typically, certain types of incidents are excluded from the coverage of commercial insurance policies. For instance, commercial property insurance usually excludes earthquake or flood damage. Also, intentional damage or injury caused by employees is excluded from commercial insurance policies.

Before you purchase a commercial insurance policy, it's important that you thoroughly research the various options available to ensure that the company receives the best possible coverage. Besides workers' compensation and disability insurance, businesses must also carry commercial auto liability insurance. This type of insurance provides coverage for the commercial vehicles of the company. In California, commercial auto insurance policies are required to have a minimum liability limit that's set at:

• $15,000 for each person injured in an accident
• $30,000 for all persons injured in an accident
• $5,000 for all property damaged in an accident

Although California does not mandate that commercial companies carry any other commercial insurance coverages apart from the ones mentioned above, it is still important to purchase the necessary commercial insurance for a small business and other types of business.

Before you start the process of buying a commercial insurance policy, it's important that you contact a California-licensed commercial insurance agent. This individual can help you navigate through the various aspects of the insurance process, including shopping for commercial vehicle insurance quotes, the application process and explaining all important policy details.

What is Commercial Insurance in California?

California business insurance protects businesses against various risks, such as property damage, loss of income, and employee injuries. An insurance policy can be customized to meet the needs of your business based on the risk it is exposed to. Having the right commercial insurance can allow you to focus on running your business efficiently.

There are over 90 property insurance firms in California, and commercial insurance companies account for over $5.9 billion in direct premiums written in the state. The table below shows the percentage of the total insurance premiums that are written in CA commercial insurance.

What Are the Types of Commercial Insurance in California?

Commercial insurance in the California is classified into four major types, namely:

• Commercial Property insurance
• Commercial Liability insurance
• Commercial Health insurance (employer health plans + workers' compensation)
• Commercial Life insurance

COMMERCIAL PROPERTY Insurance in California

California businesses can get commercial property insurance to help replace or repair damaged equipment and buildings. In 2021, over $1.4 billion in direct premiums were written for fire insurance coverage under property insurance, including commercial property insurance. California commercial property insurance also provides financial compensation for the loss of income that they might suffer due to a covered event. Various types of commercial property insurance policies are available for businesses in the state. For example, commercial property insurance is essential for businesses that rent or operate facilities, such as office space or equipment; likewise, those who lease parts of a building or property need to purchase commercial property insurance.

The following are various commercial property policies available to businesses in California:

Business Operation of Small Business Insurance

Under this most common California small business insurance policy, businesses can purchase the following:

• Business interruption insurance: This coverage includes:
  • Equipment Breakdown - This policy covers damages to equipment used by a business caused by internal forces, such as power surges, mechanical breakdowns, and operator error.
  • Loss of Business Income Insurance - Covers disaster-related events that affect the business's income. These include fire, theft, and strong winds. For instance, the California Department of Fire Services has recorded over 6,700 fires in the state, covering over 365,000 acres of land.
• Landlord or Lessor of Commercial Property: This is an insurance for buildings, including:
  • Coverage against flood damage
  • Rebuild costs coverage
  • Office building insurance
  • Industrial building coverage
  • Coverage for emergency repairs
  • Warehouse building insurance
  • Loss of rental income coverage
• Business Property Insurance: This includes:
  • Hull Insurance - covers watercraft (boats, ships, etc.)
  • Cargo Insurance - protects the shipped commercial cargo
  • Commercial Auto Policy - This covers all vehicles owned or leased by a business
  • Builder's Risk Coverage - This provides coverage to a business's building under construction and the construction workers working on it. This is added to a commercial property policy for a one-year minimum term for new construction or modifications to existing structures. This policy can be canceled on a pro-rata basis upon project completion. However, if a cancellation is made midterm, the penalty will be a short rate penalty
  • Goods/Product Coverage - This insurance coverage protects the transportation of goods belonging to the business by water (ocean marine) or land (inland marine)

California business owners can access different commercial insurance policies that suit their needs. With the help of a California-licensed insurance agent, a business can find the ideal commercial property insurance policy suitable for its needs. The agent can also bundle multiple coverages to help lower premium costs, which is a way for the business to save.

BUSINESS LIABILITY Insurance in California

According to the Employment Development Department of the State of California, there are over 1.2 million companies in California with around 14.6 million employees. Businesses can get the financial protection they need with commercial liability insurance. This type of insurance provides financial cover against the damages and injuries caused to third parties due to the actions of their employees.

In California, there are three types of liabilities in insurance, including:

• Premises liability: It covers the liability for accidental injury or property damage caused by certain conditions on your premises or business operation, whether on or away from the premises.
• Product Liability Insurance: This type of insurance helps protect a business from the financial losses it might suffer due to the lawsuits it might face due to injuries caused by its products.
• Completed operations: It protects against the damages or bodily injuries that can result from the work you have completed.

Other commercial insurance products available to Californians are:

• General Liability Insurance: A general liability policy can help protect businesses from the damages they might suffer or from injuries sustained on their property. Liability coverage includes medical payments, property damage, and legal fees.

• Professional Liability Insurance: This type of insurance covers a business's errors and financial losses that it might cause to its customers.

  There is a wide range of professional liability insurance policies, including:

  • Errors and Omissions (E&O) Liability Insurance: This type of insurance protects a company from the financial losses that it might suffer due to lawsuits caused by the errors or bad advice given by its employees.
  • Malpractice Insurance: Healthcare and legal professionals often use this type of insurance to protect themselves from the potential malpractice claims they might face on the job.
  • Directors and Officers (D&O) Liability: Most high-profile business executives use this type of insurance to cover claims related to the unintentional or intentional disclosure of sensitive information, loss of money due to bad investments, conflicts of interest, or other illegal acts.
  • Liquor liability: This type of insurance is typically required for establishments that sell alcohol, such as restaurants, bars, breweries, and liquor stores. Regardless of the business size, it is important to have this type of insurance to protect yourself from potential liability.
  • Specific Liability: Even if a customer has no criminal intent or is not at fault, a business can still be held liable for the consequences of their customer's action. This type of insurance can be used by establishments that sell alcohol and need protection against damages caused by the actions of their intoxicated customers.

• Business Auto Liability: Commercial auto policy can protect your company from liability issues from using covered vehicles in your business. There are different types of commercial insurance for vehicles that can be offered to companies. The type of automobiles covered under a commercial insurance policy is categorized by weight (light, medium, heavy, and extra heavy). The minimum liability insurance requirements for vehicles in California are $15,000 for injury/death to one person, $30,000 for injury/death to more than one person, and $5,000 for property damage. However, most insurance on commercial vehicles utilize a combined single limit for the limit. This creates higher limits for the policy. The most common commercial automobiles combined single limits are $500,000 or $100,000.

• Contract Liability Insurance: This type of insurance helps protect a company from the financial losses it might suffer due to a contract dispute.

• Cyber Liability Insurance: This type of insurance covers the costs associated with recovering and handling a data breach. Additionally, it can provide financial support to a company that a virus attack has hit.

• Landlord Liability Insurance: This type of insurance is designed for landlords who may incur damages while leasing their properties to a company. It can help the landlord financially recover from the damages caused by the injuries sustained by tenants on their property. Also, it covers legal fees and medical expenses due to the covered event.

• Employment Practices Liability (EPL): This type of insurance protects a company from various employment-related lawsuits like being sued for wrongful termination or discrimination.

• Commercial Umbrella Liability: This umbrella policy covers certain risks usually excluded from a company's commercial policy.

A company can also choose to provide accounts receivable insurance, designed to protect its financial position. This type of insurance can help minimize the financial losses it might suffer due to the failure of its customers to pay. This commercial insurance coverage also protects records of account receivables.

You can get multiple free quotes for business liability insurance through a California-licensed commercial insurance agent. The agent can help you analyze the types of business liability insurance policies available to your company and find the most affordable auto policy from the best commercial insurance companies for cars in the state. Also they can answer questions regarding what liability insurance covers. For instance, if you ask your agent “does liability cover theft?” A knowledgeable agent will answer no and that liability insurance is typically only used to cover another party's bodily injury and or damages as a result of an accident caused by the business.

COMMERCIAL HEALTH Insurance in California

California employers are required to provide coverage to their employees if they have more than 50 workers, according to the Affordable Care Act. Although the state government does not require California companies with fewer than 50 workers to provide health insurance to their employees, a business can be eligible for a health care tax credit if they offer health insurance.

In 2020, the state's insurance companies covered over 33.8 million individuals— 14.4 million represented commercial enrollees, and 13.8 million were public managed care enrollees. Businesses should consider using a California licensed insurance agent to help enroll their employees with the appropriate commercial health insurance coverage. There are various types of health insurance for small companies and large corporations, such as:

• Group health insurance: This is categorized into two in California:
  • Self-insurance: Unlike traditional insurance plans, a self-funded group insurance plan provides employees with health care coverage without paying a fixed premium. Instead of filing a claim with an insurance company, self-insurance allows the employer to pay for certain expenses out of pocket.
  • Fully Insured: This type of insurance is typically carried out through a contractual arrangement between an insurance company and the employer. The employer is usually responsible for the health insurance premium, while the insurer is responsible for the claims of the employees of the insured business.
• Disability income: Some companies offer insurance to help workers recover from injuries sustained on the job. It provides a portion of the employee's salary while they're recuperating.
• Workers' compensation insurance: This type of insurance provides medical expenses and lost wages to employees who get injured at work. In California, employers must provide their employees with workers' compensation benefits under California Labor Code Section 3700. It is a California small business health insurance requirement for any business that has more than one employee. If a business does not have workers' compensation coverage for its employees, it is a criminal offense in California. According to Section 3700.5 of the Labor Code, it is a misdemeanor punishable by a fine of up to double the worker's compensation premium the business should have paid (in an amount not less than $10,000) or imprisonment of up to one year. Also, if these uninsured employees get injured or sick while working, the employer must pay all the medical bills related to the illness or injury. Workers' compensation is an exclusive remedy for an employee's injuries on the job and can only work if the employer is properly insured. Unlicensed employers face penalties of up to $100,000.

Speak to a California licensed health insurance agent to help you get and compare several health insurance quotes. The agent will go over the coverage options and help you narrow down the right coverage to fit your business needs. This will ensure you get affordable health insurance rates for your employees.

COMMERCIAL LIFE Insurance in California

In California, commercial life insurance policies can protect business purposes and life. How does employer life insurance work? Life insurance for business works in the following ways:

Group Life Insurance

California Group Life insurance is offered to employees and their family members. It is also commonly used by employers. A company that owns a life insurance policy designs it to provide financial protection for a group of employees. Unlike individual policies, this insurance is not based on an employee's lifestyle or health. It's grouped to provide the lowest cost. In addition to being low-cost, Group Life insurance policies in California also come with various perks and benefits. These include federal income-tax deductible policies, flexible spending accounts, fringe benefits, etc. Group Life insurance policies can help boost employee morale and reduce the cost of hiring and training.

Under California law, group life insurance policies must be converted to a permanent insurance policy upon the policy’s termination. However, the cost of the converted policy will be higher than the group insurance.

The following are types of group life insurance coverages in California:

1. Life Insurance Coverage: This type of insurance can provide financial support to the surviving family members of the dead insured employee.
2. Accidental Death and Dismemberment Insurance: This type of insurance provides benefits to the dependent of an employee who dies or is dismembered while they are working on the job.
3. Common Carrier Accidental Death Benefit: If the insured passes away while traveling on a commercial airplane, a bus, a plane, or another medium of transport, the surviving family members will receive a lump sum payment.

In California, group life insurance policies can provide maximum benefit to their customers. This means that the policy's cap on benefits will be set at:

• Life insurance - $500,000
• Accidental death and dismemberment insurance - $250,000
• Common carrier accidental death benefit - $250,000

Buy-Sell Agreements

A buy-sell agreement allows partners to get a replacement for their shares if they decide to leave a company. Such an agreement is commonly used as a contingency for buying out a partner in a small business. Buy-sell agreements are commonly connected to life insurance policies on the partners. The business owns the policy and acts as the beneficiary when one of the partners dies. The money received from the life insurance is used to pay the family of the deceased partner, in exchange for a buyout of their share of the business. This ensures the integrity of the business going forward.

Key Man Life Insurance

A keyman life insurance policy can be used by a business in California to provide financial security to its operations if the key person in the company passes away. This type of insurance can be used by businesses to protect their employees who might die or become incapacitated, which can affect their operations. The company is responsible for the premium, and the business becomes the policy's beneficiary if the person passes away. The business can then use the received death benefit to find a replacement and implement various strategies to keep its operations running.

Contact a California-licensed insurance agent to help you answer how to choose a life insurance company and how to find the best life insurance policy for your business subject to your specific insurance needs. This agent guarantees customer satisfaction by helping you get multiple quotes from different insurance companies to help you purchase life insurance that is the most affordable.

What is Specialty Business Insurance?

In California, a specialty business insurance policy can provide various types of coverage to businesses that are not covered by standard insurance. These policies can help protect a company from various risks, such as:

• Occasional special use equipment - These policies can be used by businesses that operate boats, recreational facilities, and classic cars.
• Exotic or costly personal items - For businesses that produce or sell expensive or exotic items, such as jewelry, coins, and important documents, a specialty business insurance policy may be beneficial.
• High-risk professions and businesses - Professionals, such as construction companies, medical practitioners, and sportsmen, may require this type of personal policy. This is because these professionals can be easily injured on the job or get sued for negligence. Another example of specialty business insurance in California is Cannabis Insurance.

Before you buy specialty business insurance in California, it's important that you speak with a California-licensed commercial insurance agent to find suitable insurance coverage for your business.

Common types of specialty business in California include:

• Ocean-Marine Insurance - A specialty business insurance policy can be used to protect the various types of goods that are transported through the ocean.
• Flood Insurance - This type of insurance can protect businesses in areas prone to flooding. Many Californians are at risk from flooding. If your business is within flood prone areas like Sacramento, Stockton, Tracy, and West Sacramento, you will need to purchase a flood insurance policy for the business.
• Special Event Insurance - Event insurance can benefit businesses planning to hold large events, such as festivals or conferences. This type of insurance can also cover the facilities and equipment used during these events.
• Cyber Liability Insurance -When protecting intellectual property in the cloud, one of the most important factors that businesses should consider is cyber liability insurance, which can provide financial protection to employees and customers following a data breach.
• Commercial Umbrella Insurance - This protects a business from various perils typically excluded from standard insurance policies.
• Kidnap and Ransom Insurance - California recorded 30 abductions among adults in the city in 2021. In certain areas, workers may be prone to be kidnapped. Businesses can purchase this special insurance coverage to protect their employees and family members if they get abducted..
• Directors and Officers Liability Insurance - A high-ranking individual or organization can be protected from the damages caused by lawsuits.
• Travel Insurance - This type of insurance can protect a company's clients and employees during travel. This insurance can also cover the expenses associated with traveling.

It is best to consult with a California licensed commercial insurance agent who is more knowledgeable about how to get insurance for a business. The agent will help you evaluate all your needs to determine what commercial insurance coverage is suitable for your company.

What is Business Hazard Insurance in California?

In California, a business hazard insurance policy is a type of business property insurance designed to protect a company's assets against various disasters.

The two primary types of business hazard insurance in California include:

Commercial property policy:

This type of insurance provides financial compensation for the loss of income that a covered risk causes. Usually, business owners are riddled with who insures a commercial property if they are renting or leasing it. To ensure continuous protection of your business properties like equipment and facilities, it is best for you to purchase a commercial property coverage regardless of if you own the property or not.

Business owners policy (BOP):

A business owner's policy is an insurance type that combines the commercial coverages of both property and liability for insurance in a single policy. It can help protect an organization from various claims, such as fire, theft, and other covered disasters in the policy.

The most common natural disasters that strike businesses in California are:

• Wildfires
• Earthquakes
• Tornadoes
• Floods
• Drought
• Winter storms
• Rain storms

The Tubbs fire was the second most destructive wildfire in California. It burned over 36,807 acres, including dozens of city blocks and suburban neighborhoods. Over 5,000 homes and commercial and small business buildings were destroyed, and 22 deaths were recorded. Unlike the other wildfires, mainly burning in rural areas, the Tubbs Fire burned through different commercial areas, which affected the owners in different ways. Fortunately, business hazard insurance will cover businesses affected by this wildfire up to the limit on their policy.

Before looking for a business hazard insurance policy, you should consult with a California-licensed commercial agent who is more conversant with the insurance industry and can help you find the right coverage for your company at an affordable price. Typically, an agent will educate you more on how to get a business insurance for your company.

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