California has one of the largest economies – not just in the United States, but the world over. The Golden State's economic success is driven primarily by countless small business owners like you, working in a diverse range of industries. From restaurants to tech firms, machine shops to private colleges, California's small businesses come in all different shapes and sizes. Because no two businesses are alike, California's small business owners need a commercial insurance solution that is flexible to their needs. That's where AmVenture Insurance Agency, Inc. comes in.
Types of Coverage for California Small Businesses
By law, almost all California small businesses must carry workers' compensation and disability insurance for their workers. Commercial auto insurance is also required for employees driving company cars.
However, simply meeting the bare minimum insurance coverage required by law will not be enough to protect you from many of the risks that small business owners face in California. Especially because there are no caps on litigation awards in California, if your company finds itself threatened by a lawsuit then the cost to your bottom line could be insurmountable. That's why many California business owners opt for additional coverage, including:
- Businessowners Policy (BOP)
- Cyber Liability
- Employment Practices Liability (EPLI)
- Contractors' Equipment
- Professional Liability
What Insurance Coverages Do California Small Businesses Need?
Workers' Compensation: If you employ at least one person in California, then by law you must purchase workers' compensation insurance. Workers' compensation protects both you and your employees. If one of your employees is injured or falls ill due to a work-related incident, then their workers' compensation will ensure they have the financial resources they need to recover. Furthermore, it protects your business from liability in most instances related to employees' work-related injuries or illnesses.
State Disability (SDI): California is one of just a handful of states that requires employers to provide employees with state disability insurance (SDI). SDI is similar to both workers' compensation and federal Social Security Disability (SSDI) benefits, but with important differences. Unlike workers' compensation, SDI compensates employees for non-work-related injuries and illnesses that require time taken off work. Unlike SSDI, SDI is generally only for short-term, temporary disabilities.
Businessowners Policy (BOP): While a businessowners policy (BOP) is not mandatory in California, having one is an extremely good idea for most small business owners. Most BOPs cover three major exposures: general liability, property damage, and business interruption. That means that if, for example, a customer is injured while visiting your business and sues, or if your business' property is damaged by a storm and you temporarily have to shut down, your BOP can provide coverage to help mitigate the costs.
Commercial Auto Insurance: Even if you use your personal car for business purposes, your personal auto insurance usually won't cover you if you are in an accident while using that vehicle for business. That is why you and the drivers you employ need commercial auto insurance. Commercial auto insurance protects your business if an employee is involved in an accident that injures a third-party and that third-party sues for compensation. Additional coverage can also cover employee's medical expenses, vehicle repair, and even injuries sustained while unloading or loading goods.
How to Get Small Business Insurance in California
Ready to take the next step and protect your business with AmVenture's bespoke insurance solutions? Fill out the form and one of our friendly representatives will contact you promptly. You'll soon see how AmVenture can help your business both cut costs and reduce its risk exposure.