Many small and medium sized businesses in Orange County are based in an office. Office based businesses such as travel agencies, internet companies, engineering firms, agencies, accounting and other professional services have similar needs when it comes to insurance. Many have computer equipment and data that are crucial to their operations. They also have the risk of lawsuits from upset clients, customers, or employees.
The most cost effective and efficient way to obtain property and liability coverage for this type of business is with a Businessowners Policy (BOP). These policies typically have provisions similar to the property insurance and liability insurance sections of the BOP, with the option to add other coverages that are more specific to your industry.
The BOP covers real estate and other property your business owns. If your business rents or leases its premises, it can provide coverage for modifications that the tenants make to the property.
Many Business Owner Policies include basic coverage for electronic data. Computer Operations Interruption Coverage pays for business income lost and extra expenses incurred as a result of many computer problems.
Electronic Data Loss Coverage can cover the costs or replacing or restoring electronic data that has been destroyed or damaged. The cause of data loss usually must be named in the policy, such as by a computer virus or bugs in the code. You can add endorsements for more coverage if you feel you will need it. Discuss what electronic data your business uses with your insurance agent to make sure you are adequately insured.
Additional Insurance Equipment, fine arts, valuable papers, records or accounts receivable can also be added to a BOP for extra business insurance coverage.
Business Income and Extra Expense Insurance (or Business Interruption Coverage) can pay ongoing expenses while your business is unable to function after a disaster. Extra Expense Coverage pays extras expenses caused by the loss—such as rent for temporary office space. This coverage is optional and you can choose to add it to your policy.
Consider adding Employee Dishonesty Insurance if you want coverage in case of employee theft. If you deal with merchandise or receive or process payments from customers, this is probably a necessary coverage for you.
BOP insurance can provide a range of liability coverages—everything from slip and fall accidents to claims of libel or slander.
There are some liability risks that are not covered by a BOP. If a client or customer files a lawsuit because they claim to have been harmed by something you did or failed to do, Errors and Omissions Insurance can help with legal fees and pay for damages awarded.
BUSINESS VEHICLE INSURANCE
Your personal auto policy probably provides coverage for some business use of your car. It will not provide coverage for any vehicle owned by a business or a personal vehicle used primarily for a business. For those you would need a business auto policy.
If you use your personal auto for business and you are liable for an accident, you could be personally sued by the injured person. Your personal auto policy may not have enough coverage to pay for damages? In that case, your business could be sued. Make sure you have enough insurance to protect your business. Speak to a professional who can guide your decision about how much insurance is appropriate.
WORKERS COMPENSATION INSURANCE
Workers compensation is required in California for a business that has employees. Workers compensation is complex and it is important to speak to a business insurance professional who can make sure you have the right coverage.
ERM Insurance is located in Irvine, California and has been providing Orange County Businesses with professional advice for over 35 years.
Speak to an expert at (949) 222-0444 to determine how much insurance your business needs and to help you find it at the right price.