Starting a Business in California
One of the most important pieces of the puzzle when starting a business is purchasing the right insurance policies. It is important to know that, depending on the location of your California business, your standard business insurance policies are unlikely to cover damage from an earthquake or a flood. You may need to purchase coverage for those perils separately. Your agent can help you select the right business insurance policies and direct you to a source for earthquake and flood policies.
When meeting with your agent to discuss insurance policies, along with obvious perils such as fire, theft, lightning and windstorm, you need to consider the indirect costs of a disaster to your business. For instance, should you need to temporarily open your business in another location while repairs are being made at your regular workplace, you may incur extra expenses. You may also need to continue paying bills for rent, utilities and advertising even if your business is not up and running. Your agent can explain coverage options for these kinds of scenarios.
It is important that you understand the inclusions, exclusions, deductibles and limits in your business insurance policies. It would be unfortunate to suffer a catastrophe and find that you do not have the right insurance in place to cover your losses. It’s advisable to read your policies carefully and ask your agent questions to clarify your coverage, so that you are certain that you fully understand.