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Don’t Have California Business Insurance: 5 Worst Case Scenarios

    3 minute read

    No business should operate without business insurance. Just like our normal lives can be disrupted by unexpected events, businesses can be derailed by bolts from the blue.

    Consider California Business Insurance

    But some in business, not unreasonably, want an understanding of what the product does before they pay for it. Here are five worst-case scenarios, and how they unfold with and without some of the available California business insurance coverages.

    1. Your Company Is Sued Because a Customer Was Injured on Your Premises

    With General Liability coverage: if it is determined that your business has liability for the accident, you’ll have financial recourse to pay for the medical bills that may result. You’ll also be covered for legal expenses stemming from defending your business in court up to the limits you have chosen.

    Without: You’ll potentially be on the hook for every single dime of costs and liability, and even if you win the suit in court and are found not to be at fault, you can still owe thousands in legal fees. In other words, you can be in the right, win a victory, and still have your business be at risk due to the costs involved in defending your company.

    2. One of Your Employees Is Injured on the Job

    With Workers Compensation coverage: Worker’s Compensation is one of the California business insurance policies you can purchase. If the worst happens and one of your employees gets severely injured, you can comply with the law; and more to the point, ensure one of the people you value most in your business is taken care of, maintaining goodwill.

    Without: You’ll not only need to pay the wages and medical expenses of your injured employee but also pay the wages of said employee’s temporary replacement. Failing to do so may make you the target of both a civil lawsuit you may have difficulty winning and the state labor board.

    3. Your Business Vehicle Fleet Is Wiped Out

    With Commercial Auto insurance: If an earthquake, firestorm, or similar disaster strikes, and ruins your vehicles, you’ll be covered for at least some of the damage, depending on your coverage. You’ll also get quick replacements, and have coverage for accidents and auto theft that may occur in your day to day business operations.

    Without: How much will the loss of your business’ fleet set you back? Imagine building it back up again, with the added problem of being unable to conduct business until you get some vehicles on the road.

    4. An Earthquake Destroys Your Office

    With Earthquake coverage: You’ll not only be able to get your office quickly replaced, you’ll also be able to get your office’s equipment replaced. This will allow you to be able to get back to business right away, as well as have coverage for any valuable data lost.

    Without:  You’ll have to find the money to replace your equipment, losing money as time drips away.

    5. A Director or an Officer Acts Unethically

    With Commercial Umbrella coverage: If you put your trust in someone, make them an executive of your company, and they engage in criminal activities while working for you, you will be able to cover that liability.

    Without:  Your business will be facing potentially enormous losses, and even larger lawyer fees. You’ll be punished, even though you’re the victim.

    Contact Auto Insurance Specialist for Your Business Insurance Needs

    Not sure what you need for business insurance? Contact Auto Insurance Specialists. We’ve been helping California businesses get the insurance they need for years, and we’ll guide you through the thicket of insurance as well. If you’ve got a business, make sure you’re protected. Call AIS.


    This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms, and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.