Why Do You Need Commercial General Liability Insurance in CA?

Have you thought about starting the business of your dreams? Before you get too deep into planning, make sure you understand the benefits of commercial general liability insurance coverage. While this coverage is not required by law, it can be the solution to a wide range of issues that interfere with business success.

Here are important reasons why a business should secure commercial general liability insurance.

Why Invest in Commercial General Liability Insurance?

If you own commercial property, it’s wise to purchase business property insurance to protect the value of your property and its contents. Businesses face potential costly lawsuits, but having the right liability coverage will cover court costs and attorney fees. Some of the many reasons a business establishment can get sued include customer injuries, defamation, and intellectual property disputes.

Your liability insurance will cover the amount of damage or injury to a third party up to specified coverage limits. You can adjust these limits based on how you run your business and the degree to which it is exposed to litigation risk. Certain businesses, such as bars that serve liquor, need extra special coverage due to added risks of potential injuries.

At the foundation of any insurance plan is risk management. A commercial insurance policy should reflect your specific company’s risks that can lead to danger or litigation. By lowering risks, you can lower your insurance rates. Installing an alarm system, for example, reduces the risk of burglary, lowering your premiums.

While a work-at-home business doesn’t need as much insurance, a company with employees needs a variety of coverage, particularly workers’ compensation.

Accessing Commercial General Liability Insurance

Business owners with commercial property must have access to commercial general liability insurance. Some businesses, however, are denied this coverage for various reasons. The owner might have a history of filing claims or has poor credit. The establishment might be located in a high-crime area that the insurer wants to avoid.

In cases where it’s difficult to find commercial general liability insurance, a business has options. The key for these companies is to find a surplus insurance carrier that works with organizations that have been denied coverage.

Once you find a firm that will provide the coverage you need, it’s important to understand the limitations of the coverage. No single insurance plan covers everything. You may have to add special coverage for certain issues that aren’t covered by your standard policy.

Every business is unique, which is also true when it comes to risks. So before you sign up with a business insurance policy, be clear on what it covers to avoid future surprises. Every insurance agency is also different and sets its own parameters for its policies. That’s why it’s beneficial to speak with an insurance expert in your field and learn about the various nuances that go with your industry-related risks.

How We Can Help at Knight Insurance

A commercial general liability policy should cover basics such as financial protection if your property is damaged by a disaster or theft. It helps to talk with a knowledgeable insurance agent who can clarify and confirm what your policy covers. Contact the experts at Knight Insurance Services for further information about meeting your business insurance needs.

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