A Business Attorney’s Perspective

As a business law firm, we are often brought in after something has gone wrong — a customer injury, a contract dispute, a professional error, a cyber incident, or an unexpected claim from an employee. In many of those cases, the business either did not have the appropriate insurance in place or believed they were covered when they were not.

Insurance may not be the most exciting aspect of running a business, but in California’s highly regulated and highly litigious environment, the right coverage can be the difference between a manageable issue and a major financial setback.

Below are the core types of insurance most California small businesses should consider:

• Commercial General Liability (CGL) – Covers bodily injury, property damage, and basic liability claims. This is often the foundational policy for most businesses.
  
• Professional Liability (E&O) – Critical for service-based businesses and professionals providing advice, design, or specialized expertise. General liability does not cover errors or omissions in professional work.
  
• Premises Liability – For businesses with a physical location, especially when clients or customers visit. Sometimes bundled with general liability, sometimes separately required.
  
• Workers’ Compensation– Mandatory in California if you have even one employee. The penalties for failing to carry workers’ compensation insurance are significant.
  
• Employment Practices Liability (EPLI) – Additional protection against employee claims, such as discrimination, wrongful termination or sexual harassment.
  
• Additional coverage to evaluate – Cyber liability and business interruption insurance, depending on your business model and risks.

Every business has unique exposures. The right insurance mix depends on your operations, the services you provide, whether you have employees, and how your contracts allocate risk.

Our firm frequently sees the consequences when businesses are underinsured or a particular incident is not covered by the type of insurance carried – or not carried – by a business. Unfortunately, a single uncovered claim can cause a business to shut its doors.

We can help you understand your legal exposures and work with you and your trusted insurance broker to ensure that the business you have worked so hard to build is protected from lawsuits. Reach out if you’d like to learn more about how important it is to have the right type of insurance for your business.

We don’t sell insurance, but we can help you understand your legal exposures. Reach out if you’d like to review yours.
Contact Chase Law Group today

WWW.CHASELAWMB.COM
310-545-7700

_{Please note that this article is for informational purposes only and should not be considered legal advice and does constitute an attorney-client relationship. It is recommended to consult with an attorney directly for specific guidance pertaining to your business and its practices.}