Workers compensation in California isn’t the only thing that you need. You might also need to purchase commercial property insurance to keep business operations smooth. You will find that your standard commercial property insurance policy in California doesn't cover damage caused by earthquakes. Therefore, getting California commercial earthquake insurance is essential. Here’s a guide that tackles all your questions about the coverage.
California is susceptible to earthquakes. It can experience up to 100 earthquakes each day. Many of these quakes are small in magnitude, but some have made history, and people still talk about them today. Look through some of the noteworthy earthquakes which make up California's earthquake history;
The earthquake is also known as the Gorda Basin or Humboldt earthquake because it happened off the coast of Humboldt County. The earthquake injured six people, and people felt its aftershocks for days. The Gorda Basin earthquake also caused structural damage as chimneys fell, shifting four wood-frame houses off their foundations. The earthquake also caused a partial collapse of the Tompkins Hill Road Overpass.
The Landers earthquake on June 28, 1992, was 7.3 magnitude strong. It was the largest earthquake to hit Southern California in 40 years. It raptured five different faults, which are;
Johnson Valley
Landers
Camp Rock
Homestead Valley
Emerson
The quake occurred in a sparsely populated area, but its effects were felt throughout Idaho, Arizona, Nevada, and Los Angeles.
On the same day and morning that the earthquake happened, another one of magnitude 6.5 happened in Big Bear. It is considered to be the most major aftershock of the Landers earthquake. The quake caused a lot of damage in Big Bear as it caused a 44-mile-long fault rupture and landslides which blocked and damaged roads in Bernardino Mountains.
In total, the two quakes caused at least 400 people to become injured. Also, they caused the death of a child who died from a fallen chimney and two others dying due to heart attacks.
This earthquake took place on April 25, 1992. It occurred in three sequences that out stretched up to Humboldt County. The three earthquakes occur at intervals of about one-two hours apart between 11:06-4:18 am. After the quake, some aftershocks of 6.6 and 6.5 happened the next day, April 26, 1992.
Cape Mendocino 1992 Earthquake was so strong and the seismogram recorded magnitudes ranging from 6.5-8.5. These magnitudes triggered a tsunami that was heavily experienced at the shores. The damage that the earthquake caused included
Buildings
Roads
Bridges
Besides damages, no one died as a result of the earthquake despite the fact that hundreds of people were harmed.
On October 16, 1999 at around 2:46:44 am, Hector mine earthquake struck Southern California and some parts of Nevada and Arizona. The earthquake boasted a magnitude of 7.1. Although this was a high magnitude quake, it caused little to no destruction because it occurred in a remote area.
Having taken place in the heart of Mojave Desert it only caused damage to two bridges in California. The earthquake also left more than 250,000 residents without power in Southern California. However, scientists speculate that things could be much different if the same earthquake occurred in a densely populated area.
Although the El Mayor-Cucapah earthquake happened in Mexico, it was centered in Baja, California and felt throughout the region;
Nevada
Arizona
Southern California
It was the largest quake to strike the area since 1892. It caused widespread liquefaction and caused damage to highways, buildings, and homes. Experts estimated that the economic loss was in terms of millions.
On July 5, 2019, a 7.1 earthquake struck close to Ridgecrest in the Mojave desert. It was preceded by a 6.4 earthquake that struck about 7.5 miles southwest of the Searles Valley on July 4, 2019. Both quakes led to multiple aftershocks, with one of a magnitude as high as 5.5. The 7.1 earthquake was the largest in the area in about 20 years.
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There is an earthquake that has been labeled as 'The Big One' and is one that experts have predicted may happen anytime soon. The earthquake is estimated to be of magnitude 7.8 and could occur along the parts of the San Andreas fault. Experts contend that even the buildings up to code could still be damaged after such an earthquake.
Experts estimate that such an earthquake could kill about 1 800 people and injure about 50,000. Another thing that could happen is that there would be fires as the quake would rupture the natural-gas lines. Regarding the estimated financial cost of such an event, experts estimate that $200 billion with $50 billion in lost economic activity and $33 billion in building damages would be lost.
Earthquake insurance for commercial property in California might be an answer to your worries. This is designed to grant a comprehensive amount of coverage for building reconstruction or repair. With commercial earthquake insurance, you’re sure to recover even if a disastrous earthquake happens.
California commercial earthquake insurance may have high deductibles. This is because the cover is supposed to grant trusty and comprehensive protection. Deductibles are 5%-20% of the total coverage amount. Therefore, if you get a $100,000 commercial earthquake policy in California, the deductibles would be $5,000-$20,000.
Earthquake insurance for condos and houses is less extensive and covers privately owned homes. It doesn't protect business premises such as commercial earthquake insurance. The earthquake insurance's main objective is to put a roof over one's head, while commercial earthquake insurance alleviates loss that would occur to a business due to an earthquake.
Earthquake insurance in California provides a $25,000-$10 million worth of coverage depending on which insurance company you decide to work with. Commercial building earthquake insurance California may have the following types of coverage;
Loss of business income
Commercial and residential property
Direct damage
Inland marine exposures
It is essential to note that you can negotiate for additional coverage. Also, some of the policies you may sign in to may be limited; for example, you may sign in to a policy that provides exclusions for damage caused by flood or vehicle damage. Therefore, as you get a policy, ensure you understand what it covers and doesn't.
The coverage you enjoy as a policyholder largely depends on the California commercial earthquake insurance company you choose. You may find a company that can even insure you up to about $15 000 000 or even higher. When looking for commercial earthquake insurance, ensure you look at the different offers by different companies to determine the best one.
The California Earthquake Authority (CEA) doesn’t provide commercial earthquake insurance. The government formed the CEA due to the Northridge earthquake. It was meant to cater to homeowners that lost their property due to earthquakes. It doesn’t take care of business owners. The CEA only provides earthquake insurance for condos and houses, and one can only buy commercial earthquake insurance from insurance companies that are members of the CEA.
The Earthquake coverage is often considered a standalone policy. But you can buy this as an endorsement to commercial property insurance. Getting this as an endorsement might be better because policy management is easier and you might receive discounts.
Commercial earthquake insurance in California is $70.83 per month or $850 per year. The cost of your actual insurance may vary as there are many factors. They include; your business's location, the age of your premises, and your deductible. The table below shows the rates of the best companies for commercial earthquake insurance in California:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $40 | $480 | Best overall; Fastest commercial earthquake coverage |
| CoverWallet | $50 | $600 | Comparing commercial earthquake insurance quotes over the phone |
| Tivly | $63 | $756 | Comparing commercial earthquake insurance quotes over the phone |
| Hiscox | $63 | $756 | Established and reputable insurance company |
| The Hartford | $67 | $804 | Specializes in earthquake coverage for highly risky business lines |
| Thimble | $71 | $852 | Comprehensive coverage |
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Different companies offer commercial earthquake insurance, and we will look at some of the best in the industry. Here are some reviews of the best California commercial earthquake insurance companies. Read to know their pros, cons, and average cost.
Specializes in earthquake insurance coverage
Tailored policies for commercial properties
Quick and efficient claims handling
Excellent customer service
User-friendly online platform
Limited availability in certain states
May have higher premiums compared to other companies
NEXT is also another competent commercial earthquake insurance cover. It also covers many insurance coverages, such as loss of business income, commercial property, and direct damage. Also, you can negotiate to get a cover that covers additional perils.
Best for: Best overall; Fastest commercial earthquake coverage
Average cost: $40 per month
Our rating: 10/10
Easy-to-use online platform
Wide range of commercial insurance products
Ability to compare quotes from multiple carriers
Quick online application process
Not an insurance company but an insurance broker
The CoveWallet is notoriously known for being the best in providing the best commercial earthquake policies in the industry. Their commercial earthquake policies usually cover buildings, business personal property, loss of income, etc.
Their earthquake insurance for commercial property in california protection is comprehensive in the commercial space. You can negotiate with the company to develop more comprehensive plans covering perils resulting from the earthquake. The CoveWallet is one of the largest insurance companies in California, and it offers its policies in about 50 states and Washington, D.C.
Best for: Comparing commercial earthquake insurance quotes over the phone
Average cost: $50 per month
Our rating: 10/10
Commercial earthquake insurance is available as an endorsement to commercial property insurance
Grants earthquake coverage to highly risk business lines
No online quotes
The Hartford’s commercial earthquake insurance is available as an endorsement to its commercial property insurance for businesses in California. You need to speak with an agent to know the policy limits and exclusions of the coverage.
Best for: Specializes in earthquake coverage for highly risky business lines
Average cost: $67 per month
Our rating: 10/10
Established and reputable insurance company
Wide range of commercial insurance products
Strong financial stability and ratings
Nationwide coverage
Personalized risk management services
May have higher premiums compared to other companies
Limited specialization in earthquake insurance
Complex underwriting process
Limited online quoting options
Hiscox is also another insurance company that offers Commercial building earthquake insurance California. It provides various options to choose the best option to suit your business. It also provides a library of information on how you can mitigate losses caused by earthquakes. In summary, you can trust Hiscox Insurance to afford you valuable and necessary coverage.
Best for: Established and reputable insurance company
Average cost: $63 per month
Our rating: 8/10
Specializes in earthquake insurance coverage
Quick and efficient claims handling
User-friendly online platform
Competitive pricing
Personalized risk assessment services
Mixed customer reviews
May have higher premiums compared to other companies
Tivly Insurance offers a wealth of experience and expertise in personal and commercial earthquake insurance plans. They usually evaluate your property's risk and value when they come up with a suitable plan for you. Call Tivly now to compare quotes over the phone.
However, their policies could be limited, which could work to your disadvantage. It is because the policies they offer often have exclusions of damage caused to vehicles, fencing, and landscaping. The insurance cover may not cover damage caused by flooding.
Best for: Comparing commercial earthquake insurance quotes over the phone
Average cost: $62.50 per month
Our rating: 8/10
Comprehensive Coverage
Tailored Policies
Fast and Easy Process
Competitive Pricing
Limited availability
Thimble is the foremost provider of commercial earthquake insurance in California, offering businesses comprehensive protection against potential earthquake-related damages and losses.
Best for: Comprehensive coverage
Average cost: $70.83 per month
Our rating: 9/10
Earthquakes in California are a common occurrence. Although many times these earthquakes are small in magnitude, sometimes there are big earthquakes that cause a lot of damage. Experts expect that a large earthquake may happen any time soon and is projected to cause a loss of billions.
Therefore, as a business owner, you need to be careful. The best way to ease your worries is to get commercial earthquake insurance coverage. You must obtain a cover that covers all perils. Please note that you must negotiate with the insurance company you choose to decide on the number of risks you need to protect your business.
Different companies have different policies, and you must compare the other policies to decide the best one. Please remember that California commercial earthquake insurance coverage is something you cannot afford not to have, and you should get one now.
1 / 5
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
1 / 5
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
1 / 5
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
5 / 5
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
5 / 5
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
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