What Is Business Insurance?Business insurance helps protect businesses from financial losses caused by risks to their property and income. Covered risks can include things like theft, damage, and lawsuits. Insurance for businesses, also known as commercial insurance, can even cover injured workers’ lost wages and provide access to programs to help them get back to work. Commercial insurance policies also help protect businesses from financial losses resulting from liability claims.
Do You Need Business Insurance?You may ask yourself, "Why do I need business insurance?"
Businesses need business insurance for many reasons. One reason is that in the U.S., most states require certain coverages in order for a business to operate there. This usually includes workers' compensation insurance, unemployment insurance and disability insurance. Insurance for business can also help cover the costs of legal claims made against a business.
Without liability insurance, a business that has to pay the costs of a claim or lawsuit out-of-pocket may not have the financial means to survive. Insurance for business can also protect businesses from the financial risks of property loss. The costs of repairing or replacing physical property after fire, theft, vandalism and more could be devastating without a commercial property insurance policy helping cover the costs. Without insurance, companies that incur costs as a result of common business exposures like: property damage; legal claims by third parties; and work-related employee illness and injury, may not be able to afford to stay in business.
What Business Insurance Do I Need?Most businesses need at least commercial insurance, general liability and business income coverage to help protect their company’s property, income and financial assets. For small businesses, a business owner’s policy can provide all three coverages in a single policy.
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Types of Business InsuranceThe types of business insurance coverages that most businesses start with include general liability (GL), commercial property, and business income insurance. Workers’ compensation insurance is usually needed if you have employees. General liability helps cover the costs if your business is responsible for damages to a third party, property insurance helps cover costs of damage to your premises and other physical assets. Business income insurance helps replace lost income if your business is forced to shut down due to a covered loss and Workers’ Comp helps cover employees who suffer a work related injury or illness.
Your business is unique and deserves an insurance solution appropriate to the specific risks you face. That’s why The Casablanca Insurance offers a wide range of commercial insurance coverages so you can customize your insurance with the right combination of policies and endorsements to address your unique needs. Some popular coverages include:
The cost of a typical California policy has risen by 6.3 percent in the past year — the nation’s No. 2 jump — part of the five-year rise totaling 44 percent and No. 7 among the states.
Will it make you feel any better if you knew that this typical insurance bill — $1,713 for a 30-year-old male driving a 2013 Honda Civic — is only the ninth-highest in the nation, according to a study by The Zebra online insurance tracker? (Most expensive: Michigan, at $2,610. Cheapest? North Carolina, at $865!)
Look, auto insurance rates are up across the nation. The typical $1,427 policy grew by 2 percent in 2017 and is up 20 percent from 2011.
And there’s a pretty good reason for it. Insurance Companies are trying to fill a financial hole they created, in good part, by not charging enough previously. Industry tracker A.M. Best estimates U.S. Insurance Companies lost $36 billion in the past two years on all Auto, Home, and/or Commercial Insurance Policies.
No, this isn’t totally corporate greed. Insurance Companies’ desires to make a profit insuring people is part of the logic behind the rate hikes. The industry is getting financially hammered by a growing number of accidents creating record losses for many Insurance Companies.
Here are the Six Reasons why Californian’s Insurance Rates will be going up:
1. You’re working! Congrats on the new gig. But more jobs, more commuting, more chances for accidents.
2. You’re thrifty! Cheaper gasoline (remember when it was $4 plus) makes driving more affordable. So do all those super-efficient “green” vehicles. Again, more driving.
3. You’re distracted! If it isn’t the latte or burger juices spilling … it’s your smartphone or the high-tech displays that are taking your eyes off the road. Even more chances for accidents.
4. You’re buying fancy cars! All those new gadgets supposedly make you safer. Unfortunately, they’re also pricier to fix when your extra driving leads to extra accidents.
5. You’re costlier to fix! Car crashes mean your auto insurer picks up the tab for medical bills. And if you haven’t heard, it’s more expensive to be cured … much more expensive.
6. You’re paying for climate change! You know all those unusual natural disasters? Fires in California, hurricanes, snow and floods elsewhere? Guess who eventually pays to replace all those vehicles?
And The Zebra’s report shows how much your mistakes will cost you in average premium increases: A ticket for not wearing a seatbelt ups your policy cost by 4 percent; speeding (6-to-20 miles per hour over the limit), a 21 percent hike; at-fault accident, a 40 percent hike; caught driving-under-the-influence, a 77 percent hike; and guilty of hit-and-run, an 85 percent hike.
I don’t want to sound too much like a dad, but please be safe out there. Not just for your life but for your wallet too.
Collectively, safer driving would save all of us from the upcoming insurance increases.
At Casablanca Insurance,