How Much Business Insurance Does Your Business Need?

You want to protect your business, but you don’t want to pay for more protection than you really need. You also don’t want to underinsure your business. In today’s web savvy world, you probably researched business insurance on the web as well as talking to your friends and family when appropriate. But how do you really go about finding the right level of coverage? How do get the answers for which types and how much business insurance is adequate? How much does it all cost?  Should you look online or consider speaking with an agent in person?

When starting your search, we suggest you speak with a local independent insurance agent, so you can get specific answers to your specific questions, tailored to your specific situation. However, understanding what questions to ask and why they might make different recommendations will be helpful in you making an informed decision that best meets your business needs.

First, you should understand what are the specific insurance needs of your business. According to the Small Business Administration, your insurance needs depend on such factors as:

  • The type of business
  • The perceived risks associated with your business
  • State requirements for your business

Secondly, while each company has its own specific needs, here are some common business insurance options as recommended by the California Department of Insurance.

Casualty Insurance in California

Casualty insurance protects businesses and individuals from liability stemming from claims of injuries, accidents or negligence, as well as property or personal damage to third parties. It also helps pay for court costs and judgments, regardless of who’s at fault. Types of casualty insurance include:

  • General liability
  • Commercial property
  • Commercial auto
  • Professional liability/errors and omissions
  • Worker’s compensation
  • Directors and officers liability

Certain commercial insurance coverage amounts are set by the State of California, such as worker’s compensation and commercial auto insurance. You should discuss the coverage amounts that best meet your specific needs with your business insurance agent.

Property Insurance for California Businesses

Property insurance protects you and your business against the costs of damage, theft or destruction. Common types of commercial property insurance include:

  • Commercial property
  • Crime
  • Inland marine
  • Boiler and machinery

Commercial property insurance protects the building that you own or rent (as well as contents like equipment, furniture, fixtures and inventory) against damage from events like storms, floods or fires. In the case of theft, larceny or vandalism, insurance helps you replace stolen or damaged items.

In addition to covering the value of tangible items, business property insurance also protects against indirect losses, such as loss of revenue due to damaged or lost property.

Small business owners may qualify for a Business Owner’s Policy (BOP) offers general liability, property and business interruption coverage in one policy. Your business insurance agent can help you determine which policies are right for your needs.

Contact Pacific Unified Today

As a family owned and operated full service insurance firm, Pacific Unified Insurance has been proudly helping businesses just like yours get the business insurance coverage they need in Los Angeles and the surrounding areas since 1922. If you have any additional questions about selecting the right business insurance for your business, one of our independent insurance agents is ready to take the time to listen to your questions and help get you the answers for you, so ple

Dave Leahy (154 Posts)

Born and raised in Southern California, Dave was educated at Loyola High School and Arizona State University. After graduation, he founded two successful restaurants in Arizona, eventually selling them to move back to California. He began his insurance career working for Canadian Indemnity Insurance Company before joining Frank M. Flynn & Company in 1979. In 1985, he purchased the agency, eventually joining other local insurance agency owners to form Pacific Unified Insurance in 1992.


Filed under: Business Insurance Agent,Commercial Insurance — Dave Leahy @ 3:18 pm April 20, 2018


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