If you own a California business, you need Property & Liability coverage. There are many differences between California Property Coverage and California Liability Coverage. Property insurance can cover the California buildings that you own, and/or business property and inventory against physical loss or damage. Even if you don’t own a building or other property in California, you’ll still need insurance to cover the contents of the building in which you operate. Most California property insurance for business contents covers furniture, fixtures, inventory, office equipment and other supplies stored at your facility or off-premises. You may insure those items for replacement cost or for actual cash value (ACV), which pays only for the depreciated value of the property.
While replacement cost policies have higher premiums, they can help your business recover from a loss faster, since you can replace all of the lost or damaged property with new items. If you lease some of the equipment at your business, the leasing company may require that you insure the property at replacement value. Liability insurance is designed to protect your California business against losses even if the business is determined to be negligent or liable for damage, injury or loss to another’s property, reputation, or health. Damages, legal defense fees, and settlements can all be covered under your California Liability Coverage policy.
There are also many sub-categories of California Liability Insurance. For example, contractual liability can cover your California business against any liability you may assume by entering into a contact or legal agreement such as a building lease. Liquor liability coverage can protect your California business against claims that your business is liable for a liquor related accident, even if your California business does not have any involvement in the sale, manufacture, or distribution of alcohol.
Other sub-categories of California liability coverage include hired auto & non-owned auto, to protect your California business with insurance that covers vehicles your company rents, and vehicles owned by employees but not the company itself, that may be involved in accidents while on company related business. Make certain your business has considered the tradeoff between overall potential loss and total premiums, and select a California proeperty and liability business insurance policy that results in the best possible value for your Califonria based business.