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Running a small business is exciting, but achieving sustained success is challenging, even if you offer exceptional products or services. That’s always been true. However, the obstacles business owners face today are larger than ever. They run the gamut from increasing lawsuits against companies to property damage from more frequent and powerful weather events to the growing risk of cyberattacks.
Fortunately, you can protect your business from the fallout of unexpected events by carrying business insurance. A small business insurance specialist like biBerk (part of the Berkshire Hathaway Insurance Group) can provide affordable policies focused on your various risks.
Whether you need professional liability insurance because you provide professional advice or services, workers’ compensation insurance to protect your employees, or any of several other coverages, you can get the policies you need to shield your business from the potentially devastating consequences of large claims. The key is ensuring you have the right business insurance for the year ahead.
The Business Risk Environment: What To Expect in 2025
The future is bright for California small businesses. However, there are risks that owners must be aware of and prepared for. Some of the most significant hazards include:
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● Severe weather exacerbated by climate change. Extreme weather events and the potential for property damage are a growing concern for businesses everywhere.
● Cybersecurity threats. Hackers continually find new ways to bypass digital defenses and steal sensitive information, lock down systems for ransom, or otherwise harm businesses.
● Economic uncertainty. The business landscape is increasingly volatile for local and global markets, and that trend is likely to continue in 2025.
● Increasing litigation costs. Even the most conscientious businesses can get sued, and the cost of lawsuits and defending against them continues to rise.
These risks and others are the bad news for business owners. The good news is that having the right California business insurance helps protect your company from them and enables you to stay focused on your work.
Essential Coverages for California Businesses in 2025
Each company’s risk profile is unique, but every small business needs some or all of seven essential policies:
● Workers’ compensation insurance is required for nearly all companies with employees and protects them from the cost of work-related injuries.
● General liability insurance covers an array of liability scenarios (customer slip-and-fall injuries are a typical example), paying for settlements, judgments, and legal defense costs.
● Professional liability insurance (called errors and omissions insurance in some industries) is essential for businesses that provide professional advice or services. It protects them from the costs of lawsuits over alleged mistakes that cause harm.
● A business owners policy (BOP) combines general liability insurance with protection for a company’s property. It can also cover costs related to business interruption, like renting space while a building is being repaired following covered property damage.
● Commercial auto insurance protects a business from claims stemming from the use of company-owned or leased vehicles and also covers damage to them.
● Cyber insurance can pay specified costs if someone steals sensitive information and uses it to commit fraud or is likely to.
● Umbrella insurance provides an added layer of protection, paying costs over the underlying policy’s limit (up to its own limit).
Selecting the Right Business Insurance Provider
Preparing for business risks in 2025 requires working with a small business insurance provider you can trust. There are countless companies offering business insurance in California, but it’s critical that you work with one that demonstrates crucial characteristics, such as:
● Reliability and stability. Your insurer should be capable of handling approved claims with efficiency and dependability.
● Attentive customer service. When your business faces the stress of an incident, you want your insurer to be there for you, responding promptly and guiding you through the claims process.
● Accessible policies. Business insurance should be practical and easy to secure. The best insurance companies provide comprehensive coverage tailored to small businesses’ needs.
When considering small business insurance, be sure to do your homework. Read about a company’s policies, talk to their licensed insurance experts if you have questions, and get instant quotes on their website. Then, buy the policies you need and enjoy the peace of mind of knowing your business is protected from unexpected challenges.
The publisher does not endorse or evaluate the featured products, services or companies, nor any of the claims made within this contributor content and does not accept any responsibility or liability for it. This content is for informational purposes only and should not be construed as financial or legal advice. The views, thoughts and opinions expressed in this content belong solely to the contributor.
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.