If you operate a business in Palo Alto, hopefully you have at least some type of business insurance. Do you know what level of business insurance is enough? Far too many business owners underestimate the level of coverage that they should have.
If you think that you only need to have basic insurance that will protect your company from liability in the event that a customer is hurt while on your premises, then you are missing out on a lot of potential problems that could arise for almost every business out there.
It doesn’t matter the kind of business that you operate. Every single business seeks customers. In order to survive, you have to have customers buying products or services from you. Even though you may have an online business and customers never come to your door, there is always a risk of liability when selling products and services.
Just because you don’t have a physical presence doesn’t mean you don’t require some type of liability coverage.
General liability is designed to protect the business in the event that somebody is injured by an employee or while on your property. It can also protect against property damage. If a customer comes to your store and is angry about something, and if that customer destroys some property, then general liability may cover the damages. It can also protect against other liability claims that might be filed against your business or even your employees. If you have individuals who represent your business out in Palo Alto, they can also increase the risk of liability to you and your business.
General business insurance can include property coverage as well is various forms of liability, but it can also be important if you include business interruption insurance. This type of insurance will protect you against the unlikely event that your company has to shut down for any period of time.
There are countless ways or reasons why a business might have to shut down for a period of time. Some of them could be natural disasters, such as a flood or earthquake in the Palo Alto area. It could be a power failure that shuts down an area for several days or even a week. While these scenarios may seem far-fetched or significantly unlikely, they do happen. In fact, they happen all of the time across the country and unprepared and unsuspecting business owners end up scrambling to try to find a way to bring in revenue so that they can continue to pay their bills. This could cause you to have to tap into savings or get into debt just to keep your business afloat until they can reopen.
For example, a small personal care business operation had the unfortunate situation of a drunk driver plowing through the front of the store. Several employees were injured during this incident. The driver didn’t have insurance and the company had to shut down operations until repairs could be made to the front of the store, including the front door so that it was safe for not only employees to work there but for customers as well. By the time the store opened up again, six months had passed. That is an incredible amount of time for any stored to be closed, but when you consider it was a small salon, it would have been more than enough to put the owner out of business completely if it hadn’t been for the fact that he invested in business interruption insurance.
Never underestimate the possibilities that could cause your company to shut its doors for a period of time.
Commercial property coverage can protect against fire damage that could destroy the building or seriously damage inventory and other contents inside. Even if a fire isn’t likely, most commercial properties will have some type of sprinkler system installed. If a water pipe bursts, that could cause a significant amount of damage to your property as well as equipment you rely on.
What about an outside sign? Commercial property insurance could protect it in the event that is damaged, either by a natural disaster or vandalism.
If you rely on vehicles for your operations, you need to make sure that you have the proper vehicle coverage for your employees as well as yourself.
Worker’s compensation is critical for any company that hires employees. If any one of your employees is injured on the job, then worker’s compensation may be necessary. That will all depend on the severity of the injury and whether the employee can continue to work or not. If the employee cannot work or even needs to be hospitalized, without worker’s compensation insurance, you could be paying for their hospital bills and the recovery time out of your own pocket.
Errors and omissions (E&O) insurance is important for any type of business in Palo Alto that provides advice, makes recommendations, or develop solutions for others. This would be essential for consulting companies.
Are your assets protected? What about your employees?
Far too many business owners don’t realize that just because they have a business that doesn’t mean that their personal assets are protected. If your personal assets are not protected, then any liability claim against your company could also impact your savings, your home, and all of your possessions.
Most businesses don’t have nearly enough insurance coverage.
The sobering fact is that the majority of business owners, small to large, don’t have nearly the right level of coverage. Without proper commercial insurance, your business, your investment, your employees, and everything you have worked for for so long will be at risk. Make sure that you have the proper level of commercial insurance for your Palo Alto company.
If you want to find out what is available to help text your investment, contact Agosta Insurance and speak to a knowledgeable professional today.