When you set out to obtain a commercial insurance policy for
your Southern California business, you will find that there is no one-size-fits-all approach to determining the coverage needed and the
premium costs. Your business is bound to require certain coverage factors that
will establish the clauses and premiums that will be included in the policy;
here are seven factors that you should be familiar with:
Replacement Value
If you wish to obtain a policy that will pay for everything lost due to an
accident, you may elect comprehensive replacement value coverage
,; however,
your policy premiums will be higher. The cash value will be a more affordable
option, but the payouts will take into consideration how much your equipment,
supplies, tools, and vehicles have depreciated.
Business Site
You can expect to pay higher premiums if your brick-and-mortar business is
located on an earthquake fault line or a flood zone. Also, the size of the
facility will be taken into consideration by your
insurance broker San Diego.
Land Value
This is a major factor in Southern California, home of premium land for
commercial purposes. This means that owners of businesses located in ritzy
parts of town may have to pay more for coverage.
Age of the Premises
If your office, store, shop, or warehouse is located in a historic district,
there may be issues related to the age of the structure, which could be more
likely to suffer damage in comparison to modern construction. This issue can be
ameliorated if the building is brought up to code compliance.
Equipment Value and Condition
A machine shop that uses precision tools and equipment is bound to require
greater coverage than a woodworking shop that specializes in handmade custom
furniture; however, the cost to replace fine wood could increase premiums. The insurer may also take into consideration the age and the condition of the
equipment for the purpose of setting limits of coverage.
Type of Industry
Naturally, if your business is dedicated to high-risk activities such as
skydiving tours over the Mojave Desert, you can expect that your premiums will
be higher; in fact, you may face various exclusions in your policy.
General Security and Safety
This is a factor that you can control insofar as implementing measures such as
advanced security systems, remote monitoring, smart locks, smoke detectors,
fire alarms, and others. If your business is located in a part of town known
for its higher rate of crime, you will need greater coverage.
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