Business Insurance Requirements for Nurses in California

As more Californians reach retirement age, the need for nurses and other healthcare professionals rises accordingly. Demand is already high for nurses throughout the state as facilities struggle to keep up with incoming patients.

Whether you plan to open an office in the Inland Empire or take a contract position at one of the Bay Area’s leading hospitals, choosing proper business insurance is vital to your career health. If you plan to lease commercial space, you will likely be required to have general liability insurance in your leasing agreement. California state law requires small businesses to carry workers’ compensation insurance as soon as the business hires its first employee. Professional liability insurance, also called errors and omissions or nurse malpractice insurance, is not required by state law but it’s considered an area of critical importance by the American Nurses Association.

Insureon makes shopping for insurance easy with industry-leading technology that gathers quotes from top U.S. carriers that fit your needs. Read more to find out which policies are most common for nurses in California, and start an application to get your free quotes today.

Find the right insurance policy for your nursing practice

The most common policies for California nurses vary depending on a variety of factors, including revenue, client contracts, and partnerships. The table below illustrates which policies might work best for your business size.


Business type General liability / BOP Professional liability Workers' comp
Solo business owner X X  
1099 contractor / freelancer X X  
Employer X X X


General liability insurance: General liability insurance is the foundation of a nurse’s business protection with coverage that extends to bodily injury, client property damage, advertising injury, and the cost of legal defense. Most commercial leases require you to have this coverage.

Professional liability insurance: Many clients require proof of professional liability insurance before entering contracts for professional services. This policy, also called errors and omissions insurance, or nurse malpractice insurance, can help cover legal expenses if you’re sued for unsatisfactory work or a medical error such as a misdiagnosis.

Business owner's policy (BOP): Nurses sometimes qualify for a business owner’s policy. This package helps your business save money by bundling commercial property insurance with general liability at an affordable rate.

California workers' compensation insurance: California state law requires workers’ comp coverage for all small businesses with employees. If an employee is injured on the job, workers’ comp can help pay for medical fees and lost wages. Independent contractors or solo business owners without employees are not included in the state mandate, but can elect to cover themselves under a policy if they choose to do so. Workers’ compensation is typically the most costly for nurses, as they have one of the highest rates of non-fatal injuries of any profession in the country. Costly injuries resulting from overexertion and falls, slips, and trips are among the most common that nurses experience, according to data from the U.S. Bureau of Labor Statistics.

Common Workplace Injuries for Nurses in the U.S.

Business insurance costs for nurses in California

California’s high cost of living may help to explain business insurance costs for nurses that trend higher than the national median, according to an analysis of Insureon applications. Workers’ compensation is generally the most expensive policy for nursing businesses in the United States, and it is significantly more expensive in California than the national median. This is likely due in part to the profession’s high risk of injury.

Median Business Insurance Costs for California Nurses

Save time and money with Insureon

Insureon’s industry-leading technology helps nurses in California save time and money shopping for insurance by comparing policies from dozens of top U.S. carriers. Simply apply online and review quotes for the policies that best fit your business needs. Our insurance specialists are licensed in California and can answer your questions as you consider coverage.

To make the application go even quicker, have this information ready:

  • Workforce details, such as the number and types of employees
  • Current and projected revenue
  • Business partnerships
  • Insurance history and prior claims
  • Commercial lease insurance requirements

Apply for free nurse insurance quotes today.