subject: Commercial Insurance Los Angeles [print this page] If you own your own business, there is a lot to consider to keep it running as it should. From calculating overhead costs and the costs of employees to developing an effective marketing strategy to build your book-of-business, being self-employed is not a simple feat. While entrepreneurs do a lot of research on marketing strategies and business plans, several fail to acknowledge the importance of building a comprehensive insurance portfolio that covers the exposures they will face during daily operations. There are several commercial insurance los angeles providers who offer all of the plans business owners will need no matter what industry they are serving. Understand the types of insurance that are available to you to invest in the right type of coverage.
Small Business Owners Package
While certain coverages can be purchased separately, most business owners choose to invest in a Small Business Owners Package Policy, also referred to as a BOP, to ensure they do not have gaps in coverage. BOP policies are designed to cover standard coverages including general liability, property, business income, valuable papers, monies and securities, accounts receivable and employee dishonesty. While there are commercial insurance los angeles package policies, referred to as CPPs, BOPs are preferred because they cover all the aspects that are important. CPPs require the policyholder to select two or more coverages and can consist of just general liability and property insurance if preferred.
Errors and Omissions Insurance
If you provide a service to your community, chances are you will need to carry some form of errors and omissions insurance. Errors and Omissions insurance, also referred to as E&O insurance or Professional Liability coverage, will cover liability exposures that are excluded in a standard general liability insurance policy. If your customers expect you to perform a service or rely on your advice and you provide inaccurate information or do not complete the contract as promised, they can experience financial hardships. These financial losses can be compensated by lawsuits. With an errors and omissions policy, you will have coverage for legal defense, settlements and judgments that arise from the claim of unintentional negligence on the company's behalf.
Owning a business takes a lot of consideration. Not only must you hire knowledgeable employees who are trustworthy and experienced in the industry, you must budget your business expenses properly to ensure you can afford operational and overhead expenses while still making a profit monthly. While insurance is something you never want to result to using, knowing you have it gives you the peace of mind you need. There are several different commercial insurance policies available to entrepreneurs. Sit down with an experienced commercial insurance agent and discuss the coverages that are necessary to build an insurance portfolio that provides your business with adequate protection.
by: Barbara Jackson
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