Business Insurance in Los Angeles, CA

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Learn about Los Angeles's business requirements

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Which insurance policies are recommended for LA businesses?

Los Angeles is a tech-savvy melting pot that's attractive to small businesses. Protect your small LA business with these common insurance products.

General liability insurance icon

General liability insurance

A commercial general liability policy pays for legal costs from customer accidents, along with defamation and copyright infringement claims. Commercial leases in LA often require this coverage.

BEST FOR
  • Customer accidents at your business
  • Damage to a customer's property
  • Slander and other advertising injuries
Professional liability insurance icon

Professional liability insurance

A professional liability policy covers legal costs related to claims of negligence, such as advice that caused a client to lose money. It's sometimes called errors and omissions insurance (E&O).

BEST FOR
  • Mistakes that cause financial loss
  • Accusations of professional negligence
  • Missed deadlines
Cyber insurance icon

Cyber liability insurance

Cyber insurance helps small businesses in LA recover after a data breach or a cyberattack. Every business that handles credit card numbers or other sensitive data should have this coverage.

BEST FOR
  • Data breach notification costs
  • Fraud monitoring services
  • PR campaigns after a breach
Business owner’s policy icon

Business owner’s policy

A business owner's policy, or BOP, is an affordable way to buy general liability and commercial property insurance together. It's recommended for all small, low-risk businesses in Los Angeles.

BEST FOR
  • Customer slip-and-fall injuries
  • Damaged business property
  • Theft and vandalism
Workers’ compensation insurance icon

Workers’ compensation insurance

Workers' comp is required for all California businesses that have employees. It also covers work-related injuries for sole proprietors, which health insurance may deny.

BEST FOR
  • Medical bills from job-related injuries
  • Disability benefits
  • Lawsuits from injured workers
Commercial auto insurance icon

Commercial auto insurance

All vehicles owned by Los Angeles businesses must be covered by commercial auto insurance. This policy primarily covers injuries and property damage caused by your vehicle.

BEST FOR
  • Injuries from an auto accident
  • Damage caused by your vehicle
  • Lawsuits from an auto accident
Errors and omissions insurance icon

Errors and omissions insurance

E&O insurance protects consultants and professional services against legal defense costs from dissatisfied clients. It's also called professional liability insurance.

BEST FOR
  • Errors and oversights
  • Breach of contract
  • Professional negligence
Commercial property insurance icon

Commercial property insurance

This policy covers physical damage to an LA business's building and its contents, including any computers and equipment. You can bundle it with general liability insurance in a BOP.

BEST FOR
  • Fires
  • Burst pipes
  • Storm damage
Umbrella / excess liability insurance icon

Commercial umbrella insurance

An umbrella policy provides coverage once the limit is reached on your underlying general liability insurance, commercial auto insurance, or employer's liability insurance.

BEST FOR
  • Customer lawsuits
  • Auto accident lawsuits
  • Employee injury lawsuits
Looking for different coverage? See more policies.

How to get insurance for your Los Angeles 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.

Are you ready to get insurance coverage for your Los Angeles business? Complete Insureon's easy online application to get a quote today from top-rated providers.

Which business insurance policies are required in Los Angeles?

State laws often determine the type of coverage you need. These policies help you comply with Los Angeles business insurance requirements.

Purple check mark

Workers' compensation insurance

California's workers' compensation law requires this type of insurance for all businesses that have employees, whether they work full time or part time.

Workers' comp pays for medical expenses when one of your employees is injured on the job or develops an occupational illness. It also provides disability benefits for injured Los Angeles workers.

Purple check mark

Commercial auto insurance

California state law requires commercial auto insurance for all vehicles used solely for work purposes. This insurance policy covers medical payments, legal costs, and property damage from accidents involving your business vehicle.

Los Angeles businesses must meet the state's requirements for auto liability coverage, which are:

  • $15,000 in bodily injury liability or death liability per person
  • $30,000 in bodily injury liability or death liability to more than one person
  • $5,000 in property damage per accident

This amount of coverage is the least you need. It's worth considering higher limits, given the potential cost of a lawsuit. Trucking companies also may need more coverage to comply with regulations.

If you drive a personal, rented, or leased vehicle for business purposes, you may want to consider hired and non-owned auto insurance (HNOA) instead.

How much does business insurance in Los Angeles cost?

A small business owner calculating their small business insurance payments

Small businesses in LA don't have to pay a lot for commercial insurance. Here are a few average costs for California businesses:

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

The cost of business insurance depends on factors such as:

  • Type of business
  • Business operations
  • Number of employees
  • Policy limits and deductibles
  • Claims history

FAQs about LA business insurance

Review answers to frequently asked questions about LA business insurance.

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

Sometimes you need to get insured quickly to sign an agreement, such as a contract with a Hollywood studio or other client. With Insureon, you can get same-day insurance in three easy steps:

  1. Fill out our easy online application to get quotes from top-rated providers.
  2. Choose a policy and pay for it online.
  3. Download a certificate of insurance by logging into your account.

Our licensed insurance agents will help you get coverage for your small LA business that matches your risks and your budget. Most businesses can get their certificate of insurance within a few hours of applying for quotes.

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

Your business could be held responsible for a data breach, which is why cyber liability insurance is so important. Small businesses are a common target of cyberattacks, since they often have fewer security measures in place.

California's data breach laws require Los Angeles businesses to notify any residents whose personal information is exposed in a data breach. Your business could also end up paying for a data breach investigation, a PR campaign, and other costs related to a breach or cyberattack.

Cyber insurance covers these costs and provides resources so you can get back to business fast.

Does my industry affect Los Angeles insurance requirements?

Yes, the city of Los Angeles may require you to buy business insurance or bonds, depending on your profession. You may also need a business license or permit to operate in LA or do certain types of work.

Here are a few examples of businesses with special requirements:

When running a business in Los Angeles, from a cleaning company to a cannabis dispensary, you need to be aware of laws and regulations for California, LA County, and the city of Los Angeles.

How can I get help starting a small business in Los Angeles?

With more than a million sole proprietors, Los Angeles County is the nation's largest small business economy. However, the region's rich diversity is not well represented, with only a small percentage of Latinx and Black residents owning small businesses. Fortunately, there's support to help you get started:

Keep in mind that many lenders will require you to first obtain business insurance coverage, which is yet another reason to insure your investment.

How can I save money on LA business insurance?

Small business owners can save money on insurance by comparing quotes from different insurance companies. With Insureon, you can get free quotes from top-rated providers by filling out one easy application.

There are a few other ways to save, such as:

  • Bundle policies for a discount. The most popular option is a business owner's policy.
  • Choose less expensive policy options, such as lower limits or a higher deductible.
  • Focus on workplace safety. Fewer accidents means fewer claims, which helps keep your premium low.

Learn more about how to find cheap business insurance.

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