Your Guide To Business Insurance in San Jose

Your Guide To Business Insurance in San Jose

San Jose business insurance can be daunting to figure out especially for first time business owners. In addition to meeting the basic legal requirements, there are a number of insurance policies you should strongly consider adopting for your own protection. Even the best run businesses are not immune to accidents, property damage, and other unforeseen circumstances.

If you are starting a business in San Jose, do your research carefully regarding city and state code while also taking your business’s specific risk factors into consideration. Insurance coverage should both ensure your business is legally compliant and provide adequate protection for your company.

Hire A Broker

Insurance is not easy to figure out. Even with careful research, reading and understanding policy is difficult. It is easy to overlook or misinterpret information, which could leave your business vulnerable to financial loss or liability in the event of accidents or theft. It is highly advised you seek professional help when deciding on San Jose business insurance.

At UBC Insurance Solutions, we work with every client one-on-one to find a cost-efficient plan that meets your specific needs. If you are seeking an insurance broker, reach out here and someone will be in touch shortly.

Understand The Legal Requirements

Some types of insurance are not optional for your business. According to California law, all businesses must provide:

  • Worker’s Compensation: This insurance covers wage replacement and medical bills for employees injured on the job.
  • Unemployment Insurance: These taxes, paid to the US Department of Unemployment, provide services like wages and career guidance for employees who are fired or laid off.

If you have 50 or more employees, you also must provide health insurance and COBRA insurance.

General liability insurance and other forms of additional coverage are not required by California law. Operating with bare bones insurance coverage is not recommended. For the safety of your business and finances, having at least some property and casualty insurance is vital.

How Much Does Business Insurance Cost?

Insurance costs can range considerably depending on myriad factors. Your industry, coverage needs, size, and precise location can all impact insurance premiums. The most significant factor is the risk associated with the type of work done.

For example, a job that requires workers to use heavy machinery is riskier than the average office job. An insurance agency will likely charge the former business more than the latter.

The best way to estimate the price for you is to have your broker request a quote. Insurance brokers often have working relationships with major insurance providers. In some cases, they can negotiate a deal to reduce your overall costs.

Property Insurance

Property insurance covers an array of coverage for property that is stolen, damaged, or destroyed due to factors out of your personal control.

Commercial Property Insurance

Most companies – regardless of size or industry – would benefit from commercial property insurance. It protects your company’s physical assets from events like fires, explosions, theft, vandalism, and burst pipes.

Not all commercial property insurance covers damage done by earthquakes, which is obviously of special importance in California. You may need to buy supplemental earthquake insurance.

Inland Marine Insurance

While it may sound related to boating, inland marine insurance is a specialized type of property insurance that covers damage or destruction of your business property during transport. It also protects you from liability if outside property in your care is damaged in transport.

Inland marine insurance does not cover boating transportation. If you plan to transport property via boat, you need marine insurance as well.

Not all businesses need inland marine insurance. If your business does not frequently transport company property from place to place, it is likely an unnecessary expenditure.

Boiler And Machinery Insurance

This covers losses and damages caused by malfunctioning boilers and similar machinery. It is a somewhat niche type of insurance and usually only necessary for businesses that rely on heavy machinery.

Crime Insurance

Crime insurance protects business assets including merchandise, money, and physical property. Crime insurance policies vary, but usually cover for losses such as robbery, larceny, embezzlement, and burglary.

Nearly every company should have some form of crime insurance. Even completely remote companies are vulnerable to crimes like embezzlement.

Casualty Insurance

Casualty insurance provides liability coverage in the event your business is found legally responsible for an accident, injury, or property damage accrued by a third party. All businesses should have some form of casualty insurance.

General Liability Insurance

This is highly recommended for any business regardless of industry. General liability insurance protects you from accidents and property damage that either occurred on your property or were the result of your company’s goods or services. It also covers related attorney fees and court costs.

Accidents happen to even the most well-run businesses so operating without general liability insurance is a major risk.

Automobile Insurance

Automobile insurance is similar to personal auto insurance. It protects you from liability stemming from cars used by your business, as well as any damage to the covered cars. If you have company cars, automobile insurance is always a good idea.

San Jose Business Insurance: The Bottom Line

San Jose business insurance can be difficult to navigate. Finding adequate coverage within your price range is always stressful, but it is vital to be thorough in your research. You want to ensure your company is in compliance with the law and adequately protected against unforeseen circumstances.

If you have any questions about San Jose business insurance, we are always here to help. Reach out any time and someone will get in touch as soon as possible.

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Download Your Free eBook
70% of employees say benefits are a major factor in evaluating job opportunities. Learn how to find the best employee benefits package.