What Is Business Insurance and Why Is It Essential?

Numerous risks and unexpected events can seriously affect your business and finances. To keep workflows running smoothly, it’s important to cover all your bases and reduce disruptions to cash flow. You also need to look after your company’s assets, including both physical and intellectual properties, as well as its employees. One way to achieve this is by carrying business insurance.

What Is Business Insurance?

Business insurance, or commercial insurance, is a set of policies that provide coverage for your company in case of financial losses. These can result from property damage, lawsuits, employee injuries or other unforeseen incidents. The right coverage can help your business recover and continue operating after a setback.

Why Do These Policies Matter in California?

Local businesses must follow regulations that often require insurance, such as workers’ compensation or commercial auto coverage. Meeting these requirements helps you stay compliant with state law.

What Does It Cover?

Some common types of coverage include the following:

• General liability insurance may apply to claims of bodily injury, property damage or personal injury.
• Commercial property insurance may cover damage to your building, equipment or inventory from events like fire or theft.
• Workers’ compensation insurance is required in California for most employers and may cover medical costs and lost wages if an employee is injured on the job.
• Professional liability insurance, also known as errors and omissions insurance, may help cover service-based businesses from claims of negligence or mistakes.
• Commercial auto insurance may cover vehicles used for business purposes.
• Cyber liability insurance may provide coverage against data breaches and cyberattacks.

When Should I Update My Policies?

Changes in your business can affect your coverage needs. It’s important to review your policies after major updates, such as:

• Hiring additional staff
• Opening or moving to a new location
• Adding new services or products
• Purchasing new equipment

How Our Team Can Help

At Bolt Insurance, we work closely with Citrus Heights, CA business owners to assess their risks and recommend tailored insurance solutions. Contact us to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.