Navigating Commercial Business Insurance Shifts In California

In the past couple of years, the state of California has seen some substantial changes in the insurance market, including policy pricing increases and certain insurance companies pulling policies and business out of the state. Although this shift is primarily being seen in homeowners insurance policies, there are also noticeable changes occurring with some commercial business insurance policies as well. If you are located in and around the area of San Diego, California, and have questions regarding commercial business insurance, Windfall Insurance Services Inc. can help. Continue reading to learn more about navigating the shifts in commercial business insurance in California, and how to keep your business fully protected.

Commercial Business Insurance: Basic Information

If you own a small business in California, it is essential to have an adequate commercial business insurance policy in order to ensure that you are protected from significant damages and loss, including potential lawsuits, personal injury on the business site, or damages or total loss of the business property. Commercial business insurance policies protect the business, the business owner, and employees of the business from potential risks, and usually involve more than one type of insurance coverage. This type of insurance differs from personal insurance in that it covers more than one person and protects stakeholders of the business, and commercial business insurance tends to have higher coverage limits since a business typically involves more physical property. Because there are so many different types of commercial business insurance coverage types, and each business has unique needs, it is advisable to get more than one type of commercial business insurance to make sure that the investment is fully protected.

What Type Of Changes Are Impacting Commercial Business Insurance In California?

One major insurance trend in California that is significantly impacting business owners and their commercial business insurance coverage is an increase in insurance premiums. These insurance rate increases can be attributed to several factors, including a shortage of insurance coverage carriers, natural disasters, and a rise in theft and vandalism. These factors are becoming more expensive for companies to replace damages and loss, therefore increasing the cost of coverage. Many insurance agencies in California have paused policy acceptance because of changing state laws, high reconstruction costs, and stronger wildfire standards.

How To Combat The Changes In California’s Commercial Business Insurance Shifts

Even though there are certain challenges with commercial business insurance in California, fortunately, there are some measures that business owners can take to help navigate these shifts. California business owners can take steps to lower their risk of loss and make their business safer, such as implementing and maintaining effective safety procedures, adequate lighting and security systems, smoke detectors, and fire alarms. A business can also review their commercial insurance deductibles and attempt to raise them to save money, however, it is important to note that paying a higher deductible means that even though you’ll pay less for your monthly premiums, you will owe more if you have to make a claim.

If you have questions about your commercial business insurance policy in San Diego, California, contact Windfall Insurance Services Inc. for a consultation.