As you shop for your insurance you will see special terms and concepts unique to business insurance. Ask your agent to explain anything you are not familiar with. Be sure you understand how your insurance premium will be calculated. It may be floor area or, more frequently, payroll or sales income. Policy periods are generally annual.
Payment is due when coverage starts or as agreed upon.
Premium financing is usually available, but be aware of the interest rate you will be paying, as well as the authority given to the financing organization and how any disruption in your payments will affect your coverage. An employee who has suffered an injury or illness resulting from employment is entitled to workers' compensation benefits provided at the employer's expense. California Labor Code Section 3700 requires that every employer in California either buy workers' compensation insurance from a licensed insurance company, or obtain a certificate of self insurance from the California Department of Industrial Relations. Because of the elaborate requirements and considerations with this insurance, it is recommended that business owners refer to Worker's Compensation brochures available from the Department of Insurance and the Department of Industrial Relations. Still, familiarity is recommended.