Business property and liability insurance are good for your business. Business property coverage, on one hand, is an important investment that covers the physical components of your business in the event of an incident. Liability coverage, on the other hand, is what protects you if someone makes a bodily injury, personal injury or property damage claim against your business.

Like when you insure your home, you will need to take inventory of all the items in your building that you want to be covered under your commercial insurance. You should make a detailed list of each item, find out what its replacement value is and take photos of each. It is advisable that you insure the following items, if you have these:

  •  Computers, Phones, Printers
  • Furniture
  • Business records and other valuable documents
  • Inventory kept on hand in the building
  • Equipment used in manufacturing or processing
  • Outdoor features, such as signs and landscaping
  • The building

If your business is insured, you will receive pay for the cost of repairs or replacement of your damaged or stolen asset. You will receive such pay in one or two ways: replacement cost or actual cash value.

Replacement cost (RC) is the amount of money needed to rebuild or replace the building or item without deducting any money for depreciation. Actual cash value (ACV), on the other hand, is the amount of money the company will offer you to repair or replace the property or lost item accounting for depreciation.

It is generally less expensive to insure your business’s assets with actual cash value policy. However, if your business or your business’s assets sustain damage or are destroyed, you might not receive enough money to repair or replace them, or restore them to how they were before the disaster.

Components of a Business Insurance Policy

The type of policy you need depends on what type of business you own and how you operate such business. Business insurance in San Diego may contain a combination of the following components:

General Liability Insurance

This is what will protect your business in the event of a bodily injury, property damage or personal injury claim. While this type of coverage is important for any business, it’s especially important for small business owners who might be financially unable to handle a lawsuit.

Professional Liability Insurance

This type is also called errors and omissions insurance. It protects you if you happen to be sued for negligence in connection to your business. It can cover your business in case of copyright infringement, personal injury like libel or slander, and alleged or actual negligence. It can also cover defense costs if you are sued for any of these acts.

Workers Compensation Insurance

This policy is mandatory, which means you need to avail this whether you like it or not. This type will cover your employees’ medical expenses and a portion of lost wages if they are injured on the job or, in some cases, if they become ill due to an occupational disease. Mandatory or not, it is always to your advantage if you’re insured for workers’ compensation.

Some other components of business insurance that you may elect as part of your policy include identity theft coverage, electronic data and equipment coverage, and employment practices liability, just to name a few. Our team can help you decide what combination of coverage is the best fit for your business, and since we shop more than 20 reliable insurance carriers, we can make sure you get a great value.