Most business owners will readily admit that they didn’t start their business to be a short-term solution to any of their financial situations. You begin a business with the intention of surviving for a long time. Not only surviving, but thriving. If you plan on your business in Redwood City operating for a long period of time, then you need to make sure that you have the proper level of commercial insurance coverage.
Businesses that don’t carry any type of insurance coverage, or don’t carry enough, are putting themselves and their business operations at risk every time they go to work. Even the slightest issue that arises could be catastrophic, depending on the type of business you operate.
For example, you may have a few employees working for you, working in an office on their computers, answering phone calls, and other types of work. You don’t anticipate any of them becoming injured while on the job, correct? However, an employee could be injured when tripping over something that was left in the hallway, or trying to lift something and hurting their back.
If that happens, then they will likely file a worker’s compensation claim. If you don’t have the proper level of worker’s compensation insurance, you could end up being on the hook for their injuries and the recovery period. As a result, if your business is only making very thin profit margins, this could put you in the red and cause some serious long term problems that could force you to close your business up completely.
There are hundreds of potential scenarios just like this one that may not seem as though they’re going to happen to you, but they happen to businesses just like yours all across country.
Types of Commercial Coverage
In order to fully understand how commercial insurance can protect your Redwood City business, you should understand the different types of business insurance that you can choose from.
General liability insurance coverage is essentially going to cover the financial consequences of an unforeseen event. It doesn’t matter whether this unforeseen event is significant or minor, if it poses a financial risk to your business, then general liability will likely cover some of the claims.
This level of insurance could also cover claims against your business from customers or employees who are disgruntled or were injured while on the job.
Basic business insurance will generally cover property, liability, and interruption aspects.
If you have property that you own in which your business operates, then you have what is considered fixed property. You want to make sure that this property is covered against any type of damage, including accidents as well as weather-related events. Property can also include the contents of your property, including equipment and inventory. Within this type of coverage, you could include “all risk” or “specified peril.” If there is a significant risk to your type of business, and you don’t want to cover all potential risks, you can specify the type of risk that you are concerned most about and get coverage against it.
Liability coverage will help protect you in the event that some harm is caused as a result of your business. It could be a product that somebody purchased that was defective, it could be an employee who is injured while running an errand for you, or it could cover bad advice that employee offered to a customer.
If the power is lost for a significant period of time, this could cause your redwood city business to shut down for that length of time. That could cost you a significant amount of money. You want to make sure that you can still pay your bills even if you don’t have any revenue coming in during that period of time.
That is what business interruption insurance can help cover.
This type of insurance will cover a broad range of issues that could arise on your property. It could include signs that you have on the property, equipment that you use, inventory, the fencing that you may have around your property, landscaping, and even other individual’s property. Any time that you get in a vehicle while you are conducting business, then you are exposing that business in the event of an accident. Whether you hand your keys to employee to run an errand or to deliver something to a client, or you are taking care of business yourself, even in your own personal vehicle, having proper vehicle coverage is important.
While most of your employees are generally safe, you never know what could happen while they are at your company. Worker’s compensation is essential for any business that has employees. If you don’t have the proper level of insurance coverage, you could end up paying out-of-pocket for damages or injuries that occurred to one of your employees while on the job.
Errors and Omissions Insurance
If you have a business that provides any type of advice, design solutions for clients, or offers educational recommendations, you could be exposed to liability in the event of bad advice.
Protect yourself with Errors and Omissions Insurance coverage.
In order to determine whether you have the right level of insurance for your Redwood City business and its long-term survival, contact Agosta Insurance today. We can help you dig into your current policy if you have one and help you find solutions that will protect your company and your assets now and for the long term.