subject: Business Insurance Policies In California [print this page] Business insurance is extremely essential and beneficial for the survival of all organizations, including those in California. Businesses are subjected to several risks and liabilities which are covered by the insurance policies. Go through this article to know more about the different business insurance policies.
Both small and large scale businesses are usually subjected to risks like natural disasters, fire, riots, theft etc. The losses arising out of these unpredictable circumstances are usually high and sometimes it becomes impossible for small units to survive a blow. This is where business insurance policies come handy and help the organizations to cope up with such losses.
Business houses in California can find different insurance policies which cover these risks and are customized to suit their needs. Some of these insurance policies are;
Commercial General Liability Insurance
This insurance policy is popular in California and helps businesses to function without worrying about any allegation that may be brought against them. When a claim is filed, the insurance agency conducts an investigation to find out the real cause. If the claim is proven unjust, it is eliminated but if found liable, the company pays an amount which is covered by the coverage limit. Legal expenses and court fees are covered under this policy. CGL mainly covers four categories;
Bodily Injury and Property Damage Liability In this case, a claim can only be validated if the body injury or property damage occurs due to an accident covered under the policy. It also states that the accident should have happened within the policy period. The company will be liable to pay for the damage incurred only if the claim has been submitted within the policy period.
Personal and Advertising Injury Liability Personal injury refers to false arrest or detention, defamation libel, oral or written publication damaging an individual's privacy and wrongful eviction. Advertising injury means infringement of others copyright or trademarks, using others advertising idea and oral or written publication damaging an individual's privacy.
Medical Payments Liability This coverage is meant to provide small compensation for minor injuries due to accidents within the premises of the organization or in the ways next to the premises.
Supplementary Payments Liability This includes legal fees, court expenses, pre-judgement interest, expenses incurred for investigation or defense.
Product Liability Insurance
This insurance policy protects manufacturers, retailers, distributors and suppliers from claims related to the manufacture or sale of products. It includes three types of claims;
Manufacturing or Production Flaws This includes the defects in the products due to some malfunction in the production process. It usually covers the losses or injuries caused by the defective products to the buyer.
Design Defect This includes the safety issue relating to the design of the products.
Defective Warnings or Instructions This includes claims against improper labeling of products displaying insufficient warning messages for the buyers to know the risk.
The claim here also covers legal expenses, compensatory damages, economic damages, punitive damages and medical expenses.
Professional Liability Insurance
In California, this insurance is commonly known as Errors & Omissions (E&O) or Professional Indemnity Insurance (PII). This insurance policy is mainly used by consultants, engineers, service providers, quality control specialists, brokers etc. when they fail to perform or provide services, leading to financial loss to the customers. Professional Liability Insurance covers those legal aspects which are not included in other policies.
Therefore it becomes essential for every organization to select the best Business Insurance California. California based business owners can sign up any such insurance provider online and safeguard their businesses.
by: Nicole Taban
welcome to Insurances.net (https://www.insurances.net)
