Frequently Asked Questions About
Commercial General Liability Insurance
How much does commercial insurance cost?
Costs can vary widely based on industry and are also determined by zip code and often payroll and/or gross sales. Request a free quote to get an exact number.
What kind of business insurance do I need?
Most business owners need General Liability Insurance at the very least. If you have any non-owner employees, you will need workers compensation insurance too.
What is a Certificate of Insurance?
A Certificate of Insurance is proof of coverage. It lists the type and amount of liability coverage you have and other policy information when a third party requests it.
Is business insurance tax deductible?
Yes. you can deduct the cost of commercial insurance premiums. The IRS considers insurance a cost of doing business as long it benefits the business & serves a business purpose.
California Data Breach Insurance
California Data Breach Insurance. Cyber attacks have become all too common problem for businesses. What many businesses don't realize is that they may not be insured against these data breaches with their existing insurance. Read on to find out if your business needs specific California data breach insurance.
Your general liability policy does not cover data breaches. You will need a cyber liablity insurance policy to protect you from costly and damaging data breaches.
California data breach insurance protects your private information from unauthorized use with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
The Rise Of Cyber Attacks And Data Breaches
In September of 2016 it was announced that more than half a billion Yahoo accounts had been breached. Even worse, the hack had originally occurred in 2014 but wasn't discovered until two years later. Large scale breaches like the Yahoo hack are no longer an infrequent event. In fact 2016 was a banner year for cyber attacks. SWIFT, LinkedIn, Twitter, MySpace hacks occurred in 2016 each resulting in millions of customers losing their private details.
Here are some other of of the largest data breaches in recent history:
- Adobe Systems
- Dun & Bradstreet
- Home Depot
- JP Morgan Chase
- Neiman Marcus
California data breach insurance coverage helps to protect your business from this growing threat.
Why CA Small And Medium Size Business Are Vulnerable To Cyber Attacks
It's not just large businesses that are vulnerable to cyber attacks. Small businesses are in fact much more likely to be targeted that their owners often assume. Small and medium sized business owners often feel that because of their small size that they are unlikely to be targeted.
But it is precisely the small size of the business which makes them an extremely tempting target for hackers. Smaller organizations usually have weaker defenses against a cyber attack because they don't have the same IT support or technology resources. In much the same way that burglars are more likely to target a building that doesn't have an alarm over one that does. Hackers look for weak targets and unfortunately that often means small and medium sized businesses.
While in the short term it can seem easy to ignore the possibility of a data breach, in the long term such an approach can be ruinous. It's estimated that the average cost of a data breach is $420,000. The medium scale data breach would force many companies out of business, if they are not properly insured with a CA cyber liability policy.
Why You Need CA Data Breach Coverage
Many companies mistakenly believe that they are covered by their general liability policy. In many cases this has been shown to not be true. In the recent Sony PlayStation breach it was found that the Sony's liability insurance coverage did not include legal defense costs associated with the breach.
California data breach insurance isn't just for traditional technology companies either. Any business that has access to or retains customers private details could be liable for claims resulting from a data breach. There have been numerous cases of stolen laptops containing sensitive customer information which have lead to legal action and fines.
A good data breach insurance policy will cover the associated costs of a cyber attack. This includes the costs involved with notifying the individuals impacted by the breach. It will include good faith advertising to make sure that the public and specifically those affected are aware of the problem. It should also include the costs involved with legal defines resulting from legal action as part of the breach.
Providing Fast And Comprehensive Support For Affected Customers
Data breaches can have a long term impact on customers. California data breach insurance insurance can help to offset these costs for the business and its customers. Included among this are identity and credit protection for the affected customers. Being able to provide full support for customers following a data breach is the best way to counter the damage that can be done to a brand following a cyber attack. While it is not possible to turn back the clock to before the cyber attack, being able to help customers recover from the attack, is the best way to limit the damage to the brand.
One of the worst aspects of a cyber attack is the sustained impact it can have on customer's decisions whether to continue to do business with that company. Businesses that are able to respond quickly and responsibility to a data breach are much more likely to retain customer confidence. Providing this support is much easier to do when you are fully covered by a California data breach insurance policy.
Cyber Liability Coverage
The number of cyber attacks increases every year. The businesses targeted by hackers range from the largest multinationals to local mom and pop businesses. The cost of these attacks can be devastating, and many businesses are not currently fully protected under their existing general liability policy. A specific cyber liability insurance policy is the best way to mitigate against the costs that occur following a data breach.
California Economic Data, Regulations & Limits On Commercial Insurance
If you are an entrepreneur and you considering having your operations located in California, it's essential that you have a full understanding about the economy of the state, as well as the regulations and limits that are in place for commercial insurance.
If you are considering opening up a business in the Lone Star State, you first want to make sure that it is a sound location for your operations. That means that you should understand some key information related to the state's economy, as well as the types of insurance coverages that businesses are legally required to carry.
Economic Trends For Businesses In California
In terms of job creation, the state of California exceeds rate of job growth in the United States; however, as the state's metropolitan areas are reaching employment capacity, job growth is starting to slow. In 2017, the rate of growth was 2.1 percent, which is the slowest rate of growth since 2011; but it is still expected to increase by 1.8 percent by the end of 2018, and 1.2 percent by the end of 2018.
In the month of April, the unemployment rate in California dropped to 4.2 percent, which is a record low. This unemployment rate is expected to remain consistent for the rest of the calendar year; however, it's forecasted that the rate will start to increase in 2018.
The strongest labor market in the state is in the Bay Area, where the unemployment rate was 3.4 percent in 2017. Southern California follows, with an unemployment rate of 4.5 percent in 2017. In the Central Coast region, the rate was 5.4 percent and in the Central Valley, it was 6.6 percent. While the unemployment rate is considered high in these areas, they have decreased dramatically over the last 12 month period.
The industries that are expected to see the most growth in CA include:
- Information Technology
CA Commercial Insurance Regulations And Limits
The California Department of Insurance regulates insurance in the Golden State. In the state of CA, commercial liability insurance is not required; however, since the state does not cap rewards for liability law suits, business owners are wise to invest in this type of coverage. The amount of coverage recommended varies depending on the size of the business and in the industry.
Workers' compensation insurance is the only type of coverage that business owners are required to have. This applies to any organization that employs a salaried or hourly staff, even if that staff only consists of one employee. Furthermore, if an employee is injured or becomes ill as a result of work, business owners must pay for CA workers' comp benefits.
Additional Resources For Information Technology & Internet Insurance
Learn about small business IT technology insurance policies that help protect IT businesses, consultants & subcontractors from the unique risks that small tech businesses face when they work.
- Application Development
- Computer Electronic Repair
- Computer Programming
- Computer System / Network Developer
- Cyber Liability
- Data Breach
- Internet Business
- IT Consultant
- Online Store
- Software Developer
- Technology Services
- Website Design
Some the more popular IT businesses do IT contracting or freelancing work. These businesses have specific risks they face, and can have huge exposures to uncommon risks. Even if the business is very careful, a small oversight or mistake can lead to a large and expensive lawsuit.
For information technology companies, like some of the more popular ones listed below, data security is paramount:
Application Development (Mobile & Web), Business Intelligence / Data Mining Businesses, Computer Installation & Repair, Computer Programming, Computer Retail Store, Data Analysts, Architects & Scientists, Database Administrators, Frontend Developers, Hosting, IT Business Consulting, IT Project Management, IT Staffing, IT Training, Information Technology Consulting, Life Sciences & R&D, Network Architects, Network Security Consultants, System & Network Design, Technical Writing and Web Site Development.
The IT business segment has a critical need for professional liability and errors and omissions coverage. If coverage applies, the insurer has several rights and duties such as providing a legal defense against claims and suits brought by parties claiming damages. The insurer is permitted to investigate all claims to determine whether they are covered by the policy and they may choose to litigate, deny or settle claims.
Most policies providing coverage for electronic data liability, computer professional liability, and computer errors and omissions are claims-made contracts.
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