The success of a business depends on the hard work and dedication of the team. Why let one disaster wipe out your efforts and empty out your bank accounts? To avoid this, look into insuring your business, whether it is a small enterprise or a large corporation.
Insurance companies can combine protection for all major property and liability risks in one package. Opting for separate coverage is called a business owners’ policy (BOP). Larger companies might necessitate a commercial package policy.
BOPs include property insurance for equipment and buildings owned by the business. If there is any disruption of operation or business causing a loss of income because of accident, it can be covered under business interruption insurance.
Liabilities cover the company's legal duty for the damage it could cause others. It is the result of your company’s failure to behave in a professional and diligent manner. This coverage also applies to bodily injury or property damage because of faulty installations, defective products, or errors in services provided.
Some of the things BOPs don’t insure are auto insurance, professional liability, worker’s compensation and disability and health insurance. Businesses have to take out separate policies for vehicles, professional services, and employees.
Also, earthquakes, floods and terrorist attacks are not covered in business insurance.
If your business is in a flood zone, you must take out a separate policy that offers coverage against flood. Find out whether your area has been hit by flood in the past and plan whether or not you need flood insurance.
Earthquake coverage isn’t part of most property insurance policies such as business and homeowners owners’ package policies. Commercial Property Earthquake Endorsement or Special Earthquake Insurance Policy can protect you if your business is in an earthquake-prone area. It’s also crucial to note that earthquake policies have different deductibles.
Business interruption insurance only compensates you for the damage covered under your business property insurance policy and doesn’t reimburse you from the closure of business because of an earthquake. This is why you need earthquake coverage.
Terrorist Attack Losses
In the United States, according to the The Terrorism Risk Insurance Act 2002, any damages or loss because of terrorism is covered only for those businesses that opt for terrorism coverage. However, there are allowances in workers’ compensation that include deaths or injuries because of acts of terrorism.
Contact us for a California business insurance quote at 951-696-4466.