General Liability Insurance California for small businesses
Any company that has less than 500 employees is categorized as a small business. There are more than 3.4 million small businesses in California and 97.4% of them have 99 employees or less. Small businesses employ 37% of the private-sector workers in the State and there 2.6 million businesses that are a one-man show and have no employees whatsoever.
So What is General Liability Insurance California?
- Commercial or General liability insurance California is to protect a business from suffering a financial loss as a result of an injury or damage claim filed by the owner or one of the employees. The policy covers the following:
2. Physical injury to any person other than an employee caused by the owner or a current employee at the work place or a client’s residence.
3. Personal injury includes any copyright infringement, slander, libel, hijacking of personal property, false arrest or any other action that overbears on a person’s rights or reputation.
4. Advertising injury is any loss caused by the marketing or advertising of the company.
5. Legal judgements are the costs incurred against any suit filed against the company and it can be used up to the limit of the coverage. This does not however include punitive damages for willful misconduct or negligence.
Minimum General Liability Insurance California Requirements
It is not mandatory for a business to apply for a general liability insurance California however there is no upper limit on the law suit rewards and the state is known to award large judgements on liability. If you own any liquid asset then it is advised that you invest in sufficient insurance coverage to protect the business against risks.
How Much General Liability Insurance California Should You Have?
The insurance coverage differs from situation to situation and depends on the type of business, manufactured products and how much general liability insurance California would be needed to cover them. Generally, the amount is between $500,000 to $1 million for small businesses. High risk businesses that have a large volume of public interaction such as retail stores should consider increasing their coverage. For ventures that operate out of a home, the homeowner’s insurance offers limited coverage for the general business liability.
Assessing the Premium Costs
The general liability insurance California has premiums that depend on a number of factors such as the type of service, products provided and number of people employees. The coverage is only for a specific period and has a maximum limit.