When it comes to small businesses in San Diego, auto insurance isn’t enough. With a wide variety of business and commercial
risks, entrepreneurs need all the coverage they can get. Here’s a look at the
seven basic insurances all small business owners should have.
Homeowner’s Insurance
This is one of the most important insurances you need. It
protects your home against all types of damages. These damages include those
caused by both nature (fire and floods) and other factors (bankruptcy and
financial woes). This means that you can keep your humble abode safe from any liens,
in respect of any personal liability arising out of business damages.
Personal Automobile Insurance
This type of insurance covers all road vehicles, including
cars, trucks, SUVs, and motorcycles. Auto insurance works wonders in two ways.
Firstly, it protects you against any bodily injuries and physical damages
arising due to a road accident and secondly, it spares you from incurring any
liability that arises due to the collision.
General Liability Insurance
Every business, even if it’s a home-based online one, needs
a basic insurance plan called general liability insurance. This policy covers
all damages arising out of any property damage or bodily injury caused to a
third party by your products, service or employees.
Commercial Auto Insurance
As your business expands, you will have to provide vehicles
and other transportation services to your employees. This is where commercial
auto insurance is useful. It ensures your SUVs, pick up vans and trucks and
work cars against any collisions and damages.
In the event, your company does not offer vehicles or
transportation facilities and your employees drive their own car to work, you
should opt for non-owned auto liability. This type of insurance protects your
company in the event your employees do not have an auto insurance policy or
have inadequate coverage. You can easily add this insurance to your Business
Owner’s Policy (BOP) plan if you have any.
Professional Liability Insurance
The first few years of business are hard, as you have to
search for clients and business. In an attempt to secure deals, you may make
certain errors and omissions in your business practices. This is where
professional liability insurance comes in. It provides damages and defense
against any failure to provide proper professional services.
It is important to note that your general liability plan may
not cover damages against professional errors. Similarly, professional
liability insurance is necessary for all law and accountancy firms,
consultants, real estate agents, notaries, and insurance agents.
Data Breach
If your business operates in a confidential sector or has
sensitive information, it is best to invest in a Data Breach Policy. Such
insurance offers damages and defenses for all personally identifiable
information of your employees, key clients, and customers. It applies to all
breaches committed on a paper file or through electronic means.
Worker’s Compensation
This insurance covers all employees injured on the job. It
provides medical benefits and wage replacement to all employees injured while
performing their duties. In exchange for these benefits, employees lose the
right to sue their employers for the incident. As a business owner, this is insurance you must have!
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