If you plan on starting or have started a business, you will absolutely need California general liability insurance. What does this mean? What coverage will this give me? How do you know what coverage you will need? How exactly does all of it work you ask? Please see below as I will outline it to help you gain a better understanding. For more information on California General Liability Insurance click here.

What is California Liability Insurance? Liability Insurance or Commercial General Liability Insurance protects your company and its assets by paying for various things that could take place that you would be responsible for.  Some examples of this would be;

• Medical costs if someone gets an injury while on your property
• When there are property damages or injuries caused by either you or one of your employees
• Covers legal defense costs or any settlement in the event you are sued including but not limited to damages, nonmonetary losses and punitive damages
• Claims of misleading or false advertising including but not limited to copyright infringement, slander and libel protects you as a tenant if you cause any damage to a rented property

Does YOUR business need California General Liability Insurance? YES!  Even if you think you are unlikely to get a claim filed against you. We unfortunately live in a highly litigious society and chances are that at some point or another you will be faced with it. It is an extremely wise investment as policies usually range somewhere between $750-$2000 annually depending on your business and the coverage you need. This is quite certainly less than the thousands if not millions of dollars you could spend coming out of pocket fighting a court case.

How do you determine what coverage you will need? It all will be dependent on the type of business and the perceived risk associated with your business. For example a contractor will need more vast coverage than a website designer or business consultant. The physical location of your business is also a factor. Some states tend to award more in damages to plaintiffs who are injured than other states. Take the time to reach out to a licensed agent/broker for their advice before ever rushing into purchasing your policy. They will be able to help steer you in the right direction so you do not buy to little or too much coverage. If you are in a smaller lower risk category you may want to consider a BOP (Business Owners Policy) which combines Commercial General Liability with Property Coverage at a cost effective rate.

How does California General Liability Insurance work? As with most policies, your general liability policy will have a maximum amount the insurance company will pay out in the event of a claim. If your business gets sued for $250,000 in medical costs relating to an injury as well as $100,000 in legal fees but your coverage is only up to $300,000, you will be responsible for the additional $50,000. If your business is considered high risk and you already have a General Liability policy, you can also get excess coverage or an Umbrella Policy. This will increase your limits and cover you in a situation where you are worried you may not be covered properly by your existing policy should someone file and win a claim against you.

Filing a claim:
If an incident occurs that may lead to a claim you should always notify your insurance company or agent right away. Be prepared to explain in full detail your account of what happened. Including but not limited to time, date, location, names of any witnesses and any other pertinent information that may be useful.

What other insurance do I need? Well, besides California General Liability, California and most other states require that a business must have a workers compensation policy. Depending on the nature of your business, you may also need auto insurance, home business insurance, alcohol liability insurance, environmental and pollution insurance and more.

If you would like to speak with someone about exactly what you will need we are always here to help! Contact us here at JVRC for all of your insurance needs