Find the Best Business Insurance Options in California
If you run a business in California, you'll need some form of business insurance. With the right coverage, you can keep your business afloat after a major disaster like a theft, cybercrime, or fire. You may have been drawn to do business in California for its climate, but the state can also see a number of common hazards to companies like wildfires, crime, and more.
California currently has about four million small businesses that need business insurance. Also, the 7.1 million small business employees in California must be protected by workers' compensation coverage. An independent insurance agent in California can help your unique business get equipped with the right coverage. But for starters, here's a deep dive into California business insurance requirements and more.
Best Business Insurance Companies in California
Business insurance is available from many different carriers in California. But we've put together a list of only the best business insurance companies in California for your convenience. When it's time to shop for coverage, start off with these top recommendations.
- Nationwide: Nationwide has a large selection of coverages in addition to business insurance. The insurance company also has excellent ratings by both AM Best and the Better Business Bureau (BBB) and offers 24/7 claims reporting.
- Liberty Mutual: Liberty Mutual offers a wide selection of coverage, including business insurance. The insurance company has good ratings from both AM Best and the BBB and offers 24/7 claims reporting.
- Travelers: Travelers offers a large selection of coverages along with business insurance. The insurance company offers quality customer service, has tons of positive reviews, and offers numerous discounts.
- Progressive: Progressive offers a wide selection of coverages, including business insurance. The insurance company also has excellent financial strength and offers 24/7/365 customer service. Progressive is known for offering tons of discounts, too.
A California independent insurance agent can help you review these carriers and pick the right business insurance company for you.
California Business Insurance Requirements
The one type of coverage required by state law in California for all businesses with employees is workers' compensation. But your business will likely want to consider adding more coverage to a business insurance policy for a fuller picture of protection against many different hazards. Without liability coverage, for example, your business could stand to go bankrupt after just one unexpected lawsuit. Also, without the right commercial property insurance, you could lose your storefront or office space or inventory after a disaster like a theft.
Every business in California with any number of employees is required to carry protection for its team. So, the only state-required business insurance coverage in California is:
Optional Business Insurance Coverages in California:
- Commercial general liability insurance
- Commercial property insurance
- Commercial auto insurance
- Business income insurance
- Professional liability insurance
- Cyber liability insurance
A California independent insurance agent will help you build the right business insurance policy for your specific company.
What Business Insurance Covers in California
Your California business insurance policy will cover whatever you choose. So, in addition to coverage to protect your employees, you might also want to get coverage against commercial property damage, lawsuits, lost income, cybercrime, and more. You could also consider getting commercial auto insurance, which protects company vehicles against various incidents. A good option to consider is business income insurance in case a temporary closure happens. With this coverage, your business's regular income and company payroll can be maintained during a covered closure. Work together with your California independent insurance agent to ensure that your business has all the protection it needs against a variety of threats.
Liability Coverage Options for Small Businesses in California
Your California business should at least get general liability insurance to protect against lawsuits involving third parties, like customers. But you might also want additional liability coverages, depending on the type of business you run. Here are the three main types of liability coverage to consider for your business.
- Cyber liability insurance: This coverage can pay for losses related to data breaches and other cyber threats that can lead to the exposure of sensitive or private data and information, including customer credit card numbers or employee records.
- Professional liability insurance: This coverage can pay for legal costs like attorney's fees if your business gets sued by a third party for improper advice or services that caused injury or loss.
- Commercial general liability insurance: This coverage can pay for losses caused by lawsuits filed against your business for claims of personal property damage or bodily injury by third parties.
A California independent insurance agent will help your business get equipped with all the liability protection it needs.
Property Coverage Options for Small Businesses in California
To protect your business's physical building and inventory, you'll need the right kind of coverage. Most businesses in California will want to consider adding:
- Commercial property insurance: This coverage can pay for losses caused by theft, vandalism, and other threats that could damage or destroy business property, including buildings and inventory.
Your California independent insurance agent will help you decide if your business needs commercial property insurance.
Other Insurance Options for Small Business Owners in California
Your business might still need additional coverage. Here are a couple of other common options to consider for your company:
- Commercial auto insurance: This coverage can pay for losses related to company vehicles, including lawsuits after accidents, theft, vandalism, etc.
- Business income insurance: This coverage can pay for lost income caused by covered closures following disasters like fires and break-ins.
A California independent insurance agent will help make sure you add all the coverage to your policy that your business needs.
Average Cost of Business Insurance in California
The cost of a business insurance policy in California varies depending on many different factors, including the type of business you run, where exactly it's located, which coverages you select, and more. Larger businesses require more coverage, so premiums are bound to be higher. Also, if your business is located along the coast of California, you can expect to pay more for coverage due to the increased risk of storm damage, such as from tsunamis. The specific operations of your business will also impact the premium rates you pay. Riskier businesses, such as those in the construction field, often pay much higher premiums than statistically low-risk businesses.