According to the National Safety Council, workplace incidents alone cost employers and employees nearly $164 billion in 2020. This figure does not include the other possible liabilities businesses face, like lawsuits, property damage, and lost income.
There is a large number of different business insurance options in California to consider investing in. For one, liabilities are always present regardless if you’re just a simple home-based business or a large construction firm. Commercial insurance is critical for California business owners to know the ends and outs of. This article will cover all the basics you need to know to make an informed decision about business insurance, including:
What type of business insurance is required in California?
What Insurance is needed for a small business in California?
How much does business insurance cost in California?
Best business insurance companies in California?
It is important to remember to compare prices and coverage when selecting the right insurance in California. Getting free quotes and comparing online can be an excellent way to get the personalized help you need in making the right decision in buying your small business insurance in California.
For California business insurance, the only type of business insurance required by law is workers' compensation insurance.
Workers' compensation insurance provides workers with monetary benefits in the event they suffer an injury or illness in the course of standard work at their job. Listed below is how the requirement interacts with different parties in the economy.
Whether you are running a big business or a small business, the law does not discriminate between the two. This law still applies to companies that only have one employee. The Department of Industrial Relations serves as a hub to file complaints for anyone not following the law. Commercial general liability insurance in California is a must-have for any business no matter what size your business is.
All sectors and industries of the economy must follow this law for commercial insurance in California. The Contractors State License Board, which oversees regulation in the construction industry, is subject to this requirement. There are not any exemptions for worker’s compensation insurance in California based on the industry the business operates in.
According to the California Work Injury Law Center, independent contract workers are exempt from this requirement because they are not technically company employees. Other groups that may be excluded include owners, general partners, board members, and spouses of the owner. These groups are exempt because they have large enough ties to ownership to waive their participation in the worker's compensation insurance.
While most types of small business liability insurance in California, are not required by California state law, it is still recommended that employers invest in them to save costs that could arise in the future.
Another reason to invest in business insurance is that many types of clients and other companies you may do business with will have their own rules requiring their partners to have insurance. Below is a breakdown of the which types of business insurance that small businesses can benefit from that are required by law.
| Insurance Type | Required by Law? |
|---|---|
| Workers Compensation | Yes |
| General Liability | No |
| Professional Liability | No |
| Commercial Property | No |
| Business Owner’s Policy | No |
| Umbrella Insurance | No |
| Business Income | No |
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You don’t only need to be aware which business insurance policies are required by law. It also pays to know how each type functions. Also, nothing’s better if you know how much coverage you can get from general liability, commercial property, professional liability, and other policies mentioned in the table above.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $300,000/$1,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $100,000 | $100,000 | $5,000 | $100,000 | $1,000,000 |
| Waiver of subrogation included? | Yes | No | Included | Can be included | No |
| Hired/non-owned auto liability coverage included? | Yes | No | Excluded | Can be included | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Can be included | Can be included |
This insurance covers bodily injury and property claims that come as a result of the business's products, employees, or operations. Use the table above to see which insurance company offers the best general liability insurance in California.
| CoverWallet (Best) | NEXT | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $1,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $2,000,000 |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | Yes | Yes | No |
| Deductible | $500 | $500 | $500 | $500 | $500 |
These cover negligence liabilities and are specialized to your industry. Depending on your profession, professional liability insurance can also cover HIPAA and sexual abuse and molestation claims. Use the table above to see which insurance company offers the best professional liability insurance in California.
| CoverWallet | NEXT (Best) | Thimble | The Hartford | Hiscox | |
|---|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $320,000 | $25,000/$500,000 | $75,000 | $25,000 |
| Contents coverage limit (minimum) | $50,000 | $35,000 | $25,000/$500,000 | $75,000 | $15,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Included |
| Accounts receivable | Excluded | Excluded | $5,000/$10,000 | Excluded | Included |
| Money and securities | Excluded | $2,500 | $1,000 | Excluded | Included |
| Lock and keys | Excluded | $2,500 | Excluded | Excluded | Included |
| Business interruption floater | Excluded | Included | Included | Excluded | Included |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Included |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Excluded | Excluded |
Commercial property insurance covers the costs of business estate property damage and damage to any of the contents on the property. With this insurance, you can replace lost stocks, equipment, and building without incurring a lot of losses. You can bundle this with a business liability insurance in California through a business owner’s policy. Use the table above to see which insurance company offers the best commercial property insurance in California.
| CoverWallet | NEXT (Best) | Thimble | The Hartford | Hiscox | |
|---|---|---|---|---|---|
| General liability aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 |
| Commercial property coverage limit | $50,000 | $320,000 | $25,000/$500,000 | $35,000 | $75,000 |
| Optional policies can be added? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes | Yes | Yes |
| BOP discount? | Yes | Yes | Yes | Yes | Yes |
This policy offers standard liability protections associated with running a business. It is often paired with commercial property protection. Use the table above to see which insurance company offers the best business owner’s policy in California.
An umbrella policy covers a wide range of liabilities and situations. It focused on increasing the policy limits to help protect against excessive liability costs.
Business income insurance, also known as business interruption insurance, provides relief for businesses that suffer interruption to their daily operations due to mostly physical causes like accidents, extreme weather, or other things that cause similar damage.
Worker’s compensation is for employees who suffer injury or illness in the workplace. Through this insurance, they can gain benefits to compensate for lost wages and pay potential medical bills.
Commercial auto insurance will cover the cost of treating injured third parties if you cause an accident. You can also use this policy to cover repair costs if your vehicle is damaged by a covered peril. Your commercial auto insurance in California must have a $15,000/$30,000/$5,000 worth of coverage.
There are dire consequences for your business in California for not getting business insurance. In the same way that you can not drive without commercial auto insurance in California, you can not run a business without risking significant liability and illegality. Listed below are some of the consequences of not getting business insurance.
Your business becomes exposed to liability–Without a proper insurance safety net, your business becomes open to lawsuits from the public, your customers, and your employees when something goes wrong. You could potentially be sued for workers or customers getting injured on the premises, as well as fire or weather damage that could potentially occur.
Lost income from unexpected costs–Business insurance is there to protect your company from unexpected situations that may occur in the course of natural business. One of the benefits of business insurance is that you can be compensated for lost income due to unforeseen circumstances that may cause your business to shut down.
Potential fines and legal consequences–The state of California mandates that businesses must have certain types of insurance by law. Failing to abide by California law will likely result in hefty fines to pay, potential jail time, and the forced closure of your business. It is essential for successful business owners to remain compliant with California’s regulations.
Quotes for general liability insurance in California cost $40 per month or $480 per year for $1 million worth of coverage. However, this insurance rate can widely vary based on your company's claim history, industry, coverage, and the company you choose. Here is a comparison of the premium rates for different insurance companies that serve California:
| Cost per Year | Cost per Month | Best for | |
|---|---|---|---|
| NEXT | $11–$128 | $132-$1,536 | Best overall; Fastest business insurance in California |
| Hartford | $88 | $1,056 | Customer care |
| CoverWallet | $83 | $996 | Comparing California business insurance quotes online |
| Tivly | $41 | $492 | Comparing California business insurance quotes over the phone |
| Thimble | $42 | $504 | Online service |
| Hiscox | $29 | $348 | Discounts |
| Acuity | $93 | $1,116 | Dedicated customer service |
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There are many good insurance companies that serve businesses in California. Many of them serve in physical locations to make service easier as well. So if you need business insurance in San Diego or other parts of California, some of the most highly–ranked business insurance brands are listed below.
Best overall
Issues an online proof of insurance instantly
Fastest general liability insurance for phone stores
Great customer service and reputation
Excellent rates
Outstanding value for money
Get a 10% discount if you buy two or more policies
Couldn’t find any
First, on the rankings, we have NEXT. NEXT is a solid competitor whose major strength is insurance customization. They have a streamlined service and allow customers to pay for what they want. They also have physically locations in many places around California. Making a reliable way to purchase business insurance in Los Angeles and other similar areas.
Best for: Best overall; Fastest business insurance in California
Average cost: $11–128 per month
Our rating: 10/10
Small business focused
Customer care is top notch
Discounts with other products
Requires a phone call to purchase a policy
The Hartford is an expert with small business offerings. They offer personalized customer care for small businesses and discounts to help them bundle their different insurance needs.
Best for: Customer care
Average cost: $88 per month
Our rating: 10/10
Umbrella policy
Synchronized dashboard
Compare quotes online
Not an insurance company but an insurance broker
CoverWallet earns a high ranking for its coverage options and umbrella policy that helps its customers get even the most minor things covered. Their dashboard features make managing different policies easy.
Best for: Comparing California business insurance quotes online
Average cost: $83 per month
Our rating: 10/10
Good coverage
Fast online quotes
No mobile app
Tivly has an excellent array of coverage options thanks to its abundance of carriers. It boasts a minutes–quick quote process that helps get your business insurance up and running more easily. Call a Tivly representative now to compare quotes over the phone.
Best for: Comparing California business insurance quotes over the phone
Average cost: $41 per month
Our rating: 10/10
Quotes and purchases all online
Competitive Price
Good coverage
Customer service agents are online only
Thimble is an online–focused insurance company that delivers a great price and quick purchase processing. It has good coverage that goes along with its price to make it tough to beat for companies looking for business insurance in California.
Best for: Online service
Average cost: $42 per month
Our rating: 10/10
Small Business is king
Easy–to–use interface
Discount promotions on other products
Large business products are limited
Hiscox is one of the most small–business–focused companies. They routinely work with companies with ten employees or fewer. They have an excellent online space and offer a hard–to–beat price and discounts. It recommended for have likely the best small business insurance in California.
Best for: Discounts
Average cost: $29 per month
Our rating: 10/10
Dedicated specialist
Streamlined customer experience
Have to call to complete a purchase
Acuity offers balanced coverage and dedicated customer service that rates high in customer feedback. They also have a mobile app that makes tracking your policy and paying your bill simple.
Best for: Dedicated customer service
Average cost: $93 per month
Our rating: 8/10
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.
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
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.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
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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