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The Different Kinds of Insurance Services That Are Essential for Businesses

Starting a business or taking an existing entity to new heights sounds incredible. According to estimates, there are over 32 million SMEs in the US, with each requiring a lot of work to operate profitably.

You can finally channel your passion and energy into the craft and build a robust customer base. But on the flip side, you’ll also have to spend plenty of time focusing on the nuts and bolts of your business – one of which is making insurance decisions.

Insurance is essential for protecting your business from all sorts of unforeseeable events, like natural disasters, theft, employee screw-ups, and even lawsuits. Not having the right type of insurance as a safety parachute puts a business at an increased risk of failing or going bankrupt. Knowing you’re covered properly for all unexpected losses can give you the peace of mind you need to expand your business. But it also offers many other benefits.

#1- Employee Protection

Employees are the most important assets for any small business. Protecting employees with adequate insurance is a smart move. It will make them feel more comfortable and safer in the workplace while also remaining protected from losing employment if they’re involved in an alleged lawsuit.

The general liability insurance will protect your business from claims of bodily injury and property damage. With this coverage policy, you’ll also be protecting your business from any reputational harm and defamation cases that are prevalent when it comes to businesses running on a small scale.

#2- Meeting Compliance Requirements

If you’re borrowing money to finance your business, your loan agreement might require you to provide proof of insurance. The landlord’s insurance policy may not cover you even if you’re renting the workspace. Therefore, insurance will prove beneficial if something you didn’t anticipate occurs. Depending on the industry or nature of the job, some individual contracts with clients also require specific types of insurance to cover the loss if something goes awry.

#3- Workers’ Compensation Claims

Workplace accidents are common in almost all industries, sizes, and businesses. Without insurance, you and your business will probably pay the workers’ compensation out of pocket. If the employee’s health condition or injury prevents them from working for a specified period or forever, workers’ comp will pay the benefits and cover hefty bills for the employee. Otherwise, the amount sometimes reaches thousands of dollars quickly, leading to a dent in your business’s bottom line.

Business owner welcoming a qualified professional to the team

#4- Attract or Retain Skilled Talent

Studies show that organizations rated higher for benefits and compensation saw 54% lower attrition than the businesses that received poor ratings. Another Employee Benefits Survey report found that 89% of workers placed significant value on health benefits, such as medical insurance.

Second only to salary, job seekers today look for benefit packages that include health insurance, life insurance, disability, dental insurance, and long-term care insurance. For employees with households that depend on their income, life insurance can give them peace of mind that their family will be taken care of in case of their unfortunate death.

Similarly, supplemental policies are a great way to keep employees motivated since health insurance doesn’t cover dental, vision, and medications. Knowing the company cares about their well-being is a huge motivator for many job seekers.

Offering insurance as a perk isn’t only about protecting the business and attracting and retaining qualified professionals. When businesses give health benefits to employees, they feel valued, which leads to increased satisfaction, reduced absenteeism, and improved morale and commitment to helping the business achieve its goals.

#5- Protection from Vandalism, Theft, or Natural Disaster

Suppose a natural disaster strikes and the business isn’t insured properly. In that case, the lack of financial backup for replacements and repairs can wreak havoc on your business’s operations, reputation, and bottom line.

Property insurance is beneficial for covering the losses caused by any natural disaster, criminal activity, and accident. This type of insurance is very important for all businesses, but especially for SMEs that don’t have enough capital to replace things entirely if they’re destroyed suddenly.

Property insurance also provides coverage for fire, theft, vandalism, and other unfortunate events.

#6- Avoiding Outcomes of Lawsuits

Without insurance, you could go out of business quickly due to lawsuits or situations where you’re sued. Even if you’re not found guilty, the legal fee of battling it out can be unbelievably expensive.

Whether you were sued for a contract going wrong or by an ex-worker, it can cost you a lot of money that will need to come straight from the business. Many small businesses fail miserably due to active lawsuits they had to defend without insurance.

client signing papers for employee insurance services at an insurance agency

#7- Makes the Business Look Credible

Insurance gives the impression to prospects that you’re a safe bet. If anything goes wrong, you’ve got a safety net to fall back on so they’ll be compensated. This is primarily why many companies cash their insured and bonded features and display them on their signage, trucks, and advertising campaigns. In the modern-day economy with its unique challenges, it’s a great way to build trust.

Top Types of Insurance Services for Business Owners

With so many types of insurance services out there to protect businesses, their owners, and their employees, choosing the right one can be overwhelming. But Covered California Certified Agent is here to help.

We’ve helped a myriad of businesses to better understand the intricacies of various insurance policies so they can make informed decisions about their insurance options. Since small business owners experience more personal financial exposure in the event of a loss, they must contemplate their policies and insurance needs. If you feel the need to talk to experienced, reputable, and licensed insurance agents, give us a call right away!

Our insurance agents have worked with diverse businesses to offer them insurance services in California. They help entrepreneurs identify the risks and evaluate their insurance needs, which vary significantly depending on various factors such as the environment or area in which they operate. Here are a few types of insurance services businesses in California need to survive the battle of the fittest.

insurance agency for small business

Professional Liability Insurance

Professional liabilities can differ significantly from one industry to another. While there’s no one-size-fits-all coverage, professional liability insurance typically insures against negligence claims that result from failure to perform or mistakes.

Employee Theft Insurance

Nearly every business is vulnerable to employee dishonesty and theft, which can lead to extra financial burdens that small businesses cannot afford. This is why they need to protect their operation from any financial losses and invest in adequate insurance that will provide coverage for any embezzlement, theft, and fraud cases.

Property Insurance

This type of insurance covers signage, equipment, furniture, inventory, and other items in the event of theft, storm, fire, or other disasters. Depending on the policy, it might not cover earthquakes or floods that cause mass destruction. Those operating from areas at an increased risk for such events should consider investing in a separate policy.

roof broken after a natural disaster

Product Liability Insurance

If your company manufactures products to sell, this type of insurance can be very helpful if you are named in a lawsuit because of damages caused by that product. Product liability policies provide protection in such scenarios.

Employment Practice Liability Insurance (EPLI)

EPLI provides coverage when an employee accuses the business of any incident that happens at the workplace. These claims include slander, negligence, wrongful termination, retaliation, gender and age discrimination, harassment, and failure to promote.

Workers’ Compensation Insurance

Most states in the United States require organizations with employees to have workers’ compensation insurance. The policy is designed to protect business owners from the liabilities associated with workers that get injured or sick on the job. It covers lost wages, medical bills, and legal expenses in the case. The policy also helps employers remain protected from being sued by workers who were injured on the job.

Auto Insurance

Any vehicles used by the business must be fully insured. Businesses should, at the very least, insure against third-party injuries. However, a comprehensive auto insurance plan is a better idea as it will also cover the vehicles in the accident.

Hired and non-owned auto insurance is equally important. Every business will occasionally hire a non-owned vehicle or ask the employees to use their vehicle for business-related tasks.

woman on the phone after a car crash

The organization is at risk of a claim whenever anyone uses a vehicle not owned by the business to perform a business-related task. So make sure employees using their cars have personal insurance that will cover them in the event of an accident.

Some policies offer protection from arson, theft, vandalism, and other unfortunate incidents. A reliable insurance agency for small businesses will educate you about your options.

Group Health Insurance

While not so much a need, group health insurance is an excellent benefit for employees you want to retain in your organization for a longer time. The plan covers all employees, along with their families. It offers uniform benefits to all employees and allows the employer to choose the plan, unlike individual health insurance. All full-time employees can be covered regardless of their unique healthcare preferences or needs.

Tips for Streamlining Adequate Insurance for Your Business

insurance agent helping clients with corporate insurance services

Tip #1- Assess All Risks Unique to Your Business

Identify the kind of coverage a business requires based on the location, industry, operations, and other aspects. If you’ve got expensive equipment, consider a policy that protects all the machines. Likewise, for employees, you’ll need a workers’ comp policy and intellectual property insurance to protect against theft or infringement lawsuits. If you operate in an area with frequent natural disasters, invest in business income coverage and property insurance to keep things afloat.

Tip #2- Shop Around

Compare premiums, read reviews, ask for referrals, and get opinions from other business owners regarding different insurance carriers. It’s also helpful when you contact different insurance agents at reputable insurance companies to ensure you receive the best rates and coverage for your business. And that two from companies with a proven track record of approving legit claims rather than scamming vulnerable business owners.

Tip #3- Find Licensed Agents

With so many policies available to protect businesses and their owners, it can be difficult to choose the ones that best suit your situation. Find insurance agents that can help you understand the different policy terms and coverage options and connect you to reliable insurance agencies.

Tip #4- Regular Reassessments

With time, the needs of your business may evolve. For instance, you may need to alter the coverage, add or reduce specific policies, or switch insurance companies based on the growth and environment of your business. Make sure you work with insurance agents that help you reassess your needs as they devise policies better tailored to meet your business’s unique needs.

Covered California Certified Agent Provides Insurance Services for Businesses of All Sizes

Covered California Certified Agent offers insurance services for every conceivable risk your business might face. Our reliable insurance agents can help you with the cost and amount of coverage required for employee health insurance, corporate insurance, term life insurance, medical insurance, dental insurance, and many other health insurance services.

We’ve helped businesses in various industries pick the right type of employer group insurance in California. Our insurance agency can help you streamline plans within your budget to provide all employees with adequate coverage.

client for a consultation at a California insurance agency

Our team of certified insurance agents offers unprecedented customized care for all of our clients. Our goal is to help simplify the complex process of devising a robust insurance plan that protects your operation from a 360-degree viewpoint.

You can also check out the resources on our website to understand your rights, the complex industry jargon, compliance and statutory requirements, tips and tricks, guides, and a lot more to help you make an informed decision.

Let’s schedule a consultation where one of our representatives will provide all the details you require about our insurance services.