What insurance does my business need?

It depends on what your business does and what it owns. Employees bring workers’ comp and sometimes employment practices liability. Vehicles call for commercial auto. A building, equipment or inventory points to commercial property or a business owners policy. If you give advice or sell professional services, look at professional liability. If you hold customer data, look at cyber liability. CBIS can review what you do and what you carry now, then point out gaps and overlaps.

Few policies are required for every business. Workers’ comp is required once you have even one employee. Vehicles on California roads need liability insurance or another approved form of financial responsibility. Motor carriers and passenger carriers face higher minimums set by the Department of Motor Vehicles (DMV) and the California Public Utilities Commission. Contractors licensed by the Contractors State License Board (CSLB) must post a contractor bond, and contractor LLCs must also carry liability insurance. Most other requirements come from leases, client contracts and lenders, so read the insurance section of every lease or contract you sign.

There’s no single price, because every policy is rated on the business itself. Carriers look at the kind of work you do, payroll or sales, location, property values, vehicles and drivers, past claims, and the limits and deductibles you choose. The California Department of Insurance describes the basic formula as rate times exposure equals premium, and a higher deductible generally lowers the rate. CBIS can often quote more than one carrier, so you can compare coverage and price side by side.

An LLC may help keep business debts apart from your personal assets, but it doesn’t pay claims. The LLC itself can still be sued, and its money and property are on the line. Insurance may pay defense costs and covered damages, depending on the policy. California doesn’t generally require an LLC to carry liability insurance. Contractor LLCs licensed by the CSLB must, and any business with employees needs workers’ comp. Your attorney can tell you how much personal protection your LLC really gives you.

Often only a little. Homeowners and renters policies commonly limit or exclude business property like equipment and inventory, and liability from business activity, such as a client who visits and gets hurt. Depending on the business, the fix may be an endorsement on your home policy, a general liability policy or a business owners policy. Check the business exclusions in your own policy, or ask CBIS to go through it with you.

Premiums for insurance you carry for your business are generally deductible business expenses. IRS Publication 334 lists liability, fire and theft, malpractice and workers’ comp among the types you can generally deduct. Life insurance is the exception: premiums are generally not deductible when the business is the beneficiary, as with key person coverage. Your tax advisor can say how this applies to you.

Have the basics handy: business name and structure, what the business does, when it started, estimated revenue and payroll, number of employees, vehicles and drivers, your location or lease, and your current coverage and past claims. If a lease or contract lists insurance requirements, bring that too. CBIS works with clients by phone or video, so there’s no office visit. To get started, call or text CBIS at (858) 283-7575.

An independent agency isn’t tied to one insurance company, so it can quote several carriers and compare limits, exclusions and price. The carrier issues the policy, then decides and pays claims. The agency helps you choose coverage, handles the paperwork and can help you report a claim. CBIS is an independent agency, family-owned since 1982, based in Santee, and has worked with California businesses for just as long. It uses business insurance carriers rated A or better by AM Best. You can check any agent’s license with the California Department of Insurance.

Your policies are built around your own business’s liability. A contractor’s own work and injuries are generally covered by that contractor’s insurance, so ask for a current certificate of insurance before they start. For jobs with real risk, ask to be added as an additional insured. Whether a worker counts as a contractor under California law is a separate question, covered on the workers’ comp page. Also, a carrier may charge premium at audit on payments you made to uninsured contractors.

No. CBIS works only with businesses in California. The agency is based in Santee, in San Diego County, and serves clients across the state by phone or video. If your business also operates in other states, mention it when you call or text CBIS so we can tell you whether we’re a fit.