ALL California employers must provide coverage for their California employees
How does a California Commercial Business Umbrella Policy protect my business!?
Let’s face it, at some point; we all need back up. Extra help and support can make all the difference when dealing with a challenge. The same is true when it comes to your commercial insurance policies. During the messiest of times, when your standard policies have done all they could, a quote commercial umbrella insurance policy can provide that additional coverage you need. This type of policy acts as back up coverage to assist your other policies. Let’s discuss how a commercial umbrella policy works and how it can help your business!
What is a Commercial Umbrella Policy?
A California commercial umbrella policy/quote helps cover your business after you have exceeded your traditional commercial policy limits. It is similar to an excess policy but not quite the same. An excess policy is written with the same purpose as a commercial umbrella policy; however it is restricted to only the provided underlying policy coverages. A commercial umbrella policy is broader and can sometimes offer extra coverage that the underlying policies do not. For instance, if your underlying policy does not cover something on a claim you thought it would, a commercial umbrella policy can possibly still provide coverage.
How an Umbrella Policy Works
The commercial umbrella policy is most helpful in the event of lawsuits and/or medical payments, both of which can be very costly to your business. These expenses have a great chance of exceeding the policy limits of your existing commercial insurance policies, meaning any of these extra costs will be coming out of your pocket. California commercial umbrella policies/quotes can help you avoid paying out of pocket for those large claims and costs.
When an Umbrella Policy Helps
Not only can a California commercial umbrella policy/quote help you financially, it can also help your business when bidding for big projects. Large companies and corporations will be more likely to hire the business with substantial coverage to ensure any claim that could arise during the project will be covered. They sometimes even require commercial umbrella coverage. With this policy you will increase your bidding power by showing you have gone above and beyond the standard coverage.
The commercial umbrella policy helps in more ways than one and provides the most coverage for your business. For more information on how California commercial umbrella insurance can help your company, contact JVRC Insurance for a quote. You deserve substantial coverage so you can focus on running your business successfully!
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Frequently Asked Questions about Business Insurance
Why is California Workers Comp Insurance so expensive?
Largely because of claims that occur, experience modifications, fraud and payroll amounts statewide
Where do we get the information we post on our blog site?
The Department of Insurance website, The WCIRB, The Insurance Journal and many other trusted sources
What is an experience modification?
It’s a percentage that compares the payroll and loss history of your company to a similar-sized company within the same industry. For example, if a company has a better than average loss record, their experience modification would be less than 100%. If that is the case you would receive a credit on your Workers Comp rates. If that is not the case however it would result in the opposite, an increase in rates. The experience modification can be closely compared to an individual’s credit score.
Why is Workers Compensation Insurance a necessary requirement?
It is illegal in the state of California to not carry it. There will be penalties, fines and many other consequences if a worker is injured and you do not carry it. Furthermore if there is a claim and you do not have California Workers Compensation Insurance at the time the employer is still liable for all costs relating to the injury which can be devastating to any company.
How does your insurance carrier determine what your experience modification number is?
This is calculated based on your payroll, premium paid and by your reported losses for the last three consecutive years
Who regulates and makes California Workers Compensation laws?
The Department of Insurance regulates the laws and the State Senate makes them
What is a Classification or a class code?
It’s a component used determine the price an employer pays for their workers’ comp insurance premium. Classifications are established for each industry and typically include all jobs or operations within a particular business.