The type of insurance your business needs is entirely dependent on what your business does. There are several types of coverage you will likely need to insulate yourself from the costs of litigation, and there are certain types of commercial insurance mandated by California law,1 but beyond those concerns you have a significant amount of latitude in the type of coverage you purchase.

California Requires:

  • Workers’ Compensation

Additional Coverage You May Need:

  • General Liability
  • Product Liability
  • Professional Liability
  • Home-Based Business
  • Business or Commercial Auto Insurance
  • Commercial Property Insurance
  • Commercial Excess Liability

General Liability

General liability policies provide protection from all types of bodily injury or property damage claims. These could be injuries or property damage sustained on your premises or resulting from your business’s operations, products or services. If you are ever sued for libel, slander or a personal injury resulting from your business operations, general liability insurance should cover your legal costs and help pay for any resulting settlements (up to a limit).

Product Liability

General liability does provide a degree of protection in regards to products, but businesses heavily involved in the manufacturing or distribution of products as well as retailers may be better protected by a specialized product liability policy. Faulty product lawsuits, also known as defective product liability personal injury cases, can turn into expensive class action suits if several people were injured due to the same defect.

The extent of your coverage will vary depending on the types of products you sell or manufacture. If you manufacture potentially dangerous power equipment you’ll likely need a different level of coverage than a company manufacturing shirts.

 Commercial Property Insurance

Just like homeowner insurance protects homeowners from lawsuits and costs resulting from a person being injured on their residential property, commercial property insurance can protect you from premises liability lawsuits in addition to covering the costs of disasters or vandalism.

Most property insurance policies will cover an array of disasters. In addition to covering your business property, inventory, tools, equipment and everything contained within your premises, these policies may also compensate you for lost income if your facilities have been damaged to an extent that you can no longer continue to operate.

Not every commercial property insurance plan is made equal, and there are two specific categories to understand before you decide exactly which is right for you.

Most businesses are well served by obtaining some type of all-risk property insurance policy, but there are also peril-specific policies which cover very specific instances of property damage.

Peril-specific policies can be taken in addition to or in lieu of an all-risk policy. Peril-specific policies will only cover the specific perils listed. All-risk isn’t always as comprehensive as it sounds, because there could still be specific types of disasters which are excluded from even an all-risk policy.

Palm Desert area businesses are pretty safe from hurricanes, so you likely won’t need to worry about getting a peril-specific policy just to cover that, but earthquakes are often excluded from all-risk policies, so you may be inclined to find peril-specific coverage for earthquake damages.3

Professional Liability Insurance

Professional liability is especially important to doctors, lawyers, accountants and other professional service providers whose mistakes could prove especially costly. You may be the best attorney or doctor in the world but that doesn’t mean you are impervious to mistakes or that things beyond your control don’t have the potential to lead to a lawsuit. Doctors especially are sued on a regular basis, even if they did everything right throughout the course of a patient’s treatment.4

Professional liability coverage will help pay for the costs of defending yourself against malpractice suits as well as damages resulting from errors or negligence in professional services provided by you or your staff.

Find a Policy Specifically Tailored for Your Business Needs

At Palm Desert Insurance, we understand that every individual and business’s coverage needs are different, which is why we never take a one-size-fits-all approach to commercial insurance. By working with a variety of the most competitive commercial insurance carriers, we are able to shop for our clients and match them with the right solutions to meet their business’s unique needs.

If you would like to speak with a local Palm Desert area commercial insurance professional about the types of policies that would best protect the business you’ve worked so hard to build, contact Palm Desert Insurance today!






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