Who will require me to have commercial insurance?

If you are a small business owner, you likely know that many important decisions need to be made regularly concerning the operations of your business. One important decision that you will need to make is when you are deciding on a new commercial insurance policy. Commercial insurance policies are typically required by a variety of different organizations and choosing the right type of policy is essential.

State Requirements 

If you own a business in which you have an employee, you will be required by the state to carry some level of commercial insurance. The state of California will require that you have a worker’s compensation insurance in place. This type of insurance will ensure that your employees have access to the coverage they need if they are injured while at work.

Bank Requirements 

Another situation in which you will be required to have commercial insurance is if you have a lender or a bank loan. Most small businesses today do try to take advantage of working capital lines of credit and other types of loans. If you do take out a loan, there are certain requirements that need to be met. One requirement you have to meet is to maintain commercial insurance. This will typically include having a full liability policy in place. It will also require having property insurance in place if you take out a business loan to purchase the building.

Even if you do not have any employees or have any other obligations to carry commercial insurance, having insurance for your business is always a good idea. If you have a business in the Santa Clarita, CA area, one great company to speak to would be WPL Insurance Services. When you meet with WPL Insurance Services, the team of professionals can help any Santa Clarita, CA area business owner better understand their insurance needs.