Business Insurance in California

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Get the right commercial insurance for your California business

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Learn about California's business requirements

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Which insurance policies are recommended for California businesses?

California small businesses most often buy these insurance products.

General liability insurance icon

General liability insurance

A commercial general liability policy covers common risks for CA businesses, including customer property damage and injuries. Most commercial leases require this coverage.

  • Customer injuries at your business
  • Damaged customer property
  • Libel or slander lawsuits
Workers’ compensation insurance icon

Workers’ compensation insurance

Workers’ comp is required in California for every business that has employees. It also protects sole proprietors from work injury costs that health insurance might deny.

  • Employee medical expenses
  • Disability benefits
  • Lawsuits from employee injuries
Commercial auto insurance icon

Commercial auto insurance

This policy is required for business-owned vehicles in California. It covers injuries and property damage in an accident, along with vehicle theft, vandalism, and weather damage.

  • Accidents involving business vehicles
  • Theft of a business-owned vehicle
  • Damage to a company vehicle
Business owner’s policy icon

Business owner’s policy

This policy bundles commercial property insurance and general liability in one plan. It's often the most cost-effective business insurance policy for a small business.

  • Third-party injuries and property damage
  • Business property damage or loss
  • Business interruption coverage
Professional liability insurance icon

Professional liability insurance

This business liability insurance helps pay for legal defense costs related to mistakes and oversights. It's also called errors and omissions insurance (E&O).

  • Work mistakes and oversights
  • Accusations of negligence
  • Late or undelivered professional services
Errors and omissions insurance icon

Errors and omissions insurance

E&O, sometimes called professional liability insurance, is common with professional services in California. It can cover the cost of lawsuits related to your work performance.

  • Missed deadlines
  • Accusations of negligence
  • Errors and oversights
Cyber insurance icon

Cyber insurance

This insurance coverage helps California businesses survive data breaches and cyberattacks by paying for client notification costs, legal fees, and other related expenses.

  • Data breach lawsuits
  • Client notification expenses
  • Fraud monitoring costs
Umbrella / excess liability insurance icon

Commercial umbrella insurance

Umbrella insurance boosts coverage on your general liability insurance, commercial auto insurance, and employer's liability insurance when the underlying policy reaches its limit.

  • Customer lawsuits
  • Auto accident lawsuits
  • Employee injury lawsuits
Commercial property insurance icon

Commercial property insurance

This policy covers the value of a business's physical structure and its contents, such as inventory, equipment, and furniture. Bundle it with general liability coverage in a BOP for savings.

  • Fire
  • Theft and vandalism
  • Weather damage
Looking for different coverage? See more policies.

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Hear from customers like you who purchased small business insurance.

Which business insurance policies are required in California?

State laws can affect which types of business insurance you might need. These policies are required everywhere in California, from San Francisco to Los Angeles.

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Workers' compensation insurance

California state law requires businesses with any employees, full-time or part-time, to carry workers’ comp insurance.

Additionally, specific types of contractors are required by law to carry this policy, even if they don’t employ anyone else. This includes roofing, tree service, and HVAC contractors.

Workers' comp covers medical bills for work injuries and illnesses. It also provides disability benefits for injured California workers.

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Commercial auto insurance

All business-owned vehicles in California must be covered by commercial auto insurance. California's minimum requirements for auto insurance are:

  • $5,000 property damage liability per accident
  • $15,000 bodily injury liability per person
  • $30,000 bodily injury liability per accident

Trucking companies may need additional coverage to comply with regulations.

Though it's not required, personal vehicles driven for work purposes should be covered by hired and non-owned auto insurance (HNOA), as personal auto policies usually exclude business use. It can be added to general liability insurance or a business owner's policy (BOP).

How much does small business insurance cost in CA?

A small business owner calculating their small business insurance payments

Commercial insurance can be affordable for small business owners. Average costs in California are:

General liability: $42 per month
Workers' comp: $62 per month
Professional liability/E&O: $71 per month

Factors that influence business insurance costs include:

How to get insurance for your California business

View video transcript.

We're on top of your small and medium-sized business insurance needs. We'll help you find policies that protect what you've worked so hard to build. Start here.

Tell us about yourself. Questions? We've got your back. The info you share is secure. We'll double-check it and a pro with experience in your field will be in touch.

Fast? You can compare quotes from leading insurance providers in seconds and get a certificate of insurance the same day.

Always online, always on your side. Helping protect your business.

When you are ready to get insurance for your California business, you can complete Insureon's easy online insurance application to get quotes from top-rated carriers.

FAQs about California business insurance

Review answers to frequently asked questions about California business insurance coverage.

How do I get a certificate of insurance for my business?

Insureon's licensed agents can help you find policies that fulfill California's requirements and protect against financial loss. Once you've purchased insurance with us, you can download a certificate of insurance by logging into your account.

Can my company be held liable for a data security breach?

Yes – that's why cyber insurance is so crucial. Hackers are three times more likely to target small businesses, as they often have fewer resources to combat a threat.

California's data breach laws require businesses to report security breaches to affected residents, and the costs can escalate quickly. Cyber liability insurance lessens the financial impact by paying for notification costs, legal fees, and fines.

Does my industry affect state insurance requirements?

Yes, your state may have special requirements for business insurance and bonds for your industry. You may also need a license depending on the work you do.

Contractors often need to carry general liability insurance or surety bonds to perform certain types of work. Having the right insurance and bonds helps you comply with state licensing requirements.

Real estate agents and brokers and other professionals who offer advice or services sometimes need errors and omissions insurance (E&O, also known as professional liability insurance) to get licensed in their state.

State law requires that physicians carry professional liability insurance if they perform outpatient surgery.

Cannabis businesses in California need to carry general liability insurance with a $2 million aggregate limit and a $1 million per occurrence limit and a $5,000 surety bond to operate legally.

Note that cities and counties may have their own laws, in addition to state laws.

How can I save money on California business insurance?

As with any purchase, shopping around is one of the best ways to find an affordable option. With Insureon, you can compare quotes from top-rated insurance carriers by filling out a free online application.

Other ways to save include bundling policies for a discount, and choosing less expensive coverage options, such as lower limits or a higher deductible. Learn more about how to find cheap business insurance.

Find policies that match California's requirements

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