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1654 The Alameda, Suite 210
San Jose, CA 95126

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The Five Most Common Commercial Insurance Types Purchased in CA

KC Wilson Insurance & Financial Services serving San Jose, CA wants you to purchase the insurance your business needs to protect itself, not extraneous policies you don’t need. That’s why we put together this guide to explain the five most common types of claims filed on commercial insurance policies. 

Common Commercial Insurance Claims

Burglary and Theft

About 20 percent of businesses report burglaries and thefts. This includes break-ins and thefts by employees. You would need a property damage policy to protect your business from this type of loss.

Water and Freezing Damage

Other property damage that frequently causes businesses to file a claim includes water damage. While California businesses largely avoid the freezing damage, except in the far north part of the state, this accounts for about 15 percent of claims. Teach employees to shut off the water at the main to avoid the worst damage.

Wind and Hail Damage

Approximately 15 percent of the businesses filed claims for wind or hail damage. Wind damage includes when a tree falls on your business or business property or it lifts items and throws them into your windows. Properly maintaining your trees, tying down outdoor items, and bringing in items in high wind conditions solves the problem. In some areas, you must purchase wind insurance separately.

Fire Damage

Finally, 10 percent of the claims come from fire damage. Installing fire suppression equipment, such as sprinklers, and fire detection equipment works to reduce losses, but so does using fire retardant materials.

Customer Slips and Falls

The fifth most common type of claim comes from customer slips and falls. Your business liability insurance covers this claim type, which accounts for 10 percent of all claims. Conducting appropriate maintenance and cleaning up spills quickly goes a long way to solving this problem.

Contact Us

Contact KC Wilson Insurance & Financial Services, serving the greater San Jose, CA community, to obtain commercial insurance that protects your business from financial losses. Call us today.

How to Choose the Right Commercial Insurance

Commercial insurance is an essential part of business, with its benefits often seen when a crisis occurs. To ensure you get the benefits of your policy, choosing the right commercial insurance will be the first thing you will be required to take care of. Below, KC Wilson Insurance & Financial Services details things to keep in mind when getting a policy within San Jose, CA.

Understand Your Legal Obligations

Each state requires its business owners to carry specific policies for operation, with insufficient coverage attracting fees or leading to business closure. Research what your state’s legal business requirements are to help you limit any legal issues. Some examples of policies that often fall under legal requirements include worker’s compensation insurance and commercial auto insurance. The first option will help you cover your employee’s costs of injuries when they experience physical bodily harm, while the second pays for expenses related to auto accidents.

Consider Risks in Your Area of Operation

Every industry has risks, with common examples being property damage, employee harm and cyber attacks. Based on your risk factors, consider getting commercial insurance that targets your scope of operations. In addition to this, your business’s location will be another factor to consider. If you operate within areas that experience constant flooding, make it a point to get sufficient coverage for such a risk.

Consider Policy Exclusions

While various commercial policies protect businesses against numerous hazards, not all emergencies will be covered. Natural hazards such as earthquake damage will often be excluded from various policies, requiring you to get different coverage for such an occurrence. Personal vehicles will also be excluded from your coverage, with commercial policies protecting cars registered in your company’s name. Ensure that you research what your policies cover and the exclusions that come with each coverage.

If you need help assessing the types of commercial insurance that your business could benefit from, contact KC Wilson Insurance & Financial Services today. Our San Jose, CA agents will help you evaluate commercial policies suited to your area of operation.

Why businesses in San Jose need commercial insurance?

The San Jose, CA area has continued to have a strong economy and consistent population base. At the same time, this area gets plenty of business travelers and recreational visitors. This helps to make this part of California a great place to own a business. If you are a business owner in this part of the state, you need to ensure you carry the right insurance coverage. Businesses here need to have commercial insurance for a few reasons.

Insurance Protects Company

You will want to have commercial insurance for your business as it can protect your company. A commercial insurance plan offers many valuable forms of coverage including protection for your commercial assets and liability mitigation. This can help ensure that your company is protected if your valuable assets are damaged or stolen or your company is named in a liability claim. This could protect the solvency and future of your organization. 

Insurance is Required

You should also get a commercial insurance plan to stay in compliance with requirements. If you are going to own a business here, there could come a time in which you need to raise money from an investor, take out a loan from a bank, or lease a commercial space. In either situation, you are bound to sign an agreement that will require you to carry commercial insurance. Maintaining coverage will ensure you stay in compliance.

As you are looking to protect your San Jose, CA business with commercial insurance, calling KC Wilson Insurance & Financial Services will be a good idea. The team with KC Wilson Insurance & Financial Services understands the options you have when it comes to commercial coverage. The team will offer the support you need to build a plan that will ensure you are protected. 

Commercial Insurance Considerations in California

KC Wilson Insurance & Financial Services has served the San Jose, CA area long enough to know that a moment of preparation in the form of purchasing quality insurance is worth a million moments trying to restore your home or business after an event. If you are ready to purchase commercial insurance, here are some considerations for California residents.  

  • California state law requires Worker’s Compensation insurance if you have employees. This will protect you, and your employee’s on a most basic level. But this basic legal requirement is often not considered enough. You have many options for upgrades for the perfect policy for all your commercial needs. 
  • If your company has vehicles or employees that drive for the job, then commercial vehicle insurance may be required, and it is certainly recommended to go above and beyond basic automobile insurance coverage. 
  • Additional commercial insurance is easy to purchase and can help ensure that your company, your family, and your employees will have a cushion of support even if there is an event outside of your control. You can choose exactly the level of coverage that you need. 
  • Your location may determine your insurance rates, so consider this if you are buying a warehouse near the water or near other elements that may be a risk to the company’s structure or safety. 
  • If you have a specialty item or a unique risk level, you may want to add umbrella insurance to your commercial policy for additional monetary coverage. 

Contact us at KC Wilson Insurance & Financial Services if you are looking for quality insurance in San Jose, CA. 

Do I Need Commercial Insurance in California?

With upwards of 4 million small businesses in California, business owners must protect their investment to ensure their own financial success and the livelihoods of those they employ. To that end, businesses in California must have workers’ compensation insurance regardless of the number of full-time or part-time workers they employ. In short, workers’ compensation insurance helps pay for the medical bills and lost wages associated with an employee being injured or getting ill while on the job. In addition to workers’ compensation insurance, California businesses must also have commercial auto insurance on any company-owned vehicles. Keep in mind that this law only extends to vehicles that are owned by the business, so if your employees are required to use their personal vehicles for work-related functions, then you should strongly consider hired and non-owned auto insurance because the vast majority of personal insurance policies will not cover business use.

Although workers’ compensation and commercial auto insurance are the only two insurance requirements for businesses in California, there are additional policies that can be purchased for your business that help protects various aspects. For instance, cyber liability insurance protects small businesses from the exponential costs stemming from lawsuits, identity protection tools, fines, and much more, resulting from a data breach or hack. Other optional policies include general liability and professional liability insurance, which protect business owners from third party damages and errors or omissions. 

With so many options to choose from, selecting a commercial insurance policy can feel overwhelming. Lucky for you, the friendly and professional team at KC Wilson Insurance & Financial Services in San Jose, CA strives to make the process as easy as possible. Give us a call today to schedule a no-obligation consultation.

Our Partners:

  • Allianz
  • AmTrust
  • ASI
  • Chubb
  • CNA
  • CSE
  • Encompass
  • First American
  • Foremost
  • Great American
  • Guard
  • Hagerty
  • Hanover
  • Hartford
  • Hartford AARP
  • Kemper Preferred
  • Liberty Mutual
  • Mapfre
  • Markel
  • Mercury
  • MetLife