Finding the best business insurance is crucial if you own a business in California. The right coverage from a reputable company can be invaluable if you need to file a claim for issues like workplace accidents or stolen business property.
To assist you in securing the coverage, I’ve identified the six best business insurance companies in California. These selections are based on their product options, financial stability, and customer service.
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6 Best Business Insurance in California NEXT – Overall Best Business Insurance in CaliforniaNEXT stands out as the best general liability insurance company for employers in California, thanks to its affordable rates and solid financial standing. With policies averaging $28 per month, it’s the cheapest option in the state.
NEXT has an A- (Excellent) rating from AM Best, which, while strong, is slightly lower than some other insurers we evaluated. Although NEXT received good marks for its quote process, some users might need more than one-minute wait time for a quote.
Pros
The most affordable insurer at $28 per month
Offers a relatively fast quote system
Cons
Lower stability score
Poor customer complaint rating
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With over 200 years of operation, The Hartford is renowned for its financial stability and strength. It offers both personal and commercial insurance policies, including specialized options for industries like real estate.
The Hartford is the top choice for landlord insurance in California, providing comprehensive coverage for owners of apartment buildings or rental units. As California experiences a surge in population and demand for housing and rentals, landlord insurance has become increasingly important.
The Hartford’s landlord insurance policies offer protection for physical property, unattached structures like sheds or garages, personal property inside the home (such as appliances), and include medical payments and premises liability insurance.
Pros
Above average customer satisfaction ratings for auto insurance shopping
Includes free benefits like new car replacement with AARP auto insurance policies
Cons
Higher than expected number of complaints for auto insurance policies
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biBERK – Best for Premium Discount OffersbiBERK is the top general liability insurance provider for sole proprietors in California. It offers the second-cheapest rates in the state, with policies averaging $23 per month.
As part of the reputable Berkshire Hathaway Insurance Group, biBERK has earned the highest possible rating from AM Best, an A++ (Superior), demonstrating its financial strength to fulfill policyholders’ valid claims. biBERK excels in customer satisfaction, receiving fewer complaints than most insurers.
Pros
Few customer complaints
Highest financial stability rating
Second-cheapest insurer at $23 per month
Cons
The online quote process is slower than other insurers
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Hiscox – Best for Premium Deductibles RateHiscox offers all the essential coverages needed for a home-based business, with the added benefit of a 5% discount when purchasing two or more policies.
Their policies are tailored to your specific industry, and general liability premiums are lower for home-based business owners. Customers frequently praise the application process and customer service team on third-party review sites.
Pros
Excellent customer reviews
Provides a 5% multi-policy discount
Quick online application process with instant coverage
Policies can be customized to suit specific industry needs
Offers lower general liability premiums for home-based businesses
Cons
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CoverWallet – Best for Ease of UseCoverWallet provides free quotes directly to your business inbox and offers a variety of insurance packages, including general liability insurance, workers’ compensation, and business owner’s policies. Their general liability insurance covers third-party injury and property damage claims.
For small businesses unsure about which insurance packages to choose, CoverWallet offers reliable and expert advice to help you make the best decision quickly.
Pros
Provides a wide variety of coverage types
Ability to manage policies, pay premiums and handle claims via an online dashboard
Offers quotes from several insurance providers through an online application
Cons
It may require a phone call to complete the quote process
Not a direct insurance provider, coverage is facilitated by third parties
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Chubb – Best for Competitive RatesChubb offers various insurance policies covering property, casualty, liability, and specialty lines, ensuring comprehensive protection against various risks. Their customizable solutions allow clients to create insurance plans tailored to their needs.
Chubb provides an easy-to-purchase package of insurance options suitable for business owners to buy online. Their business owner policy (BOP) combines general liability insurance with business property and business interruption insurance.
It includes extra expense coverage and accounts receivable coverage, features not always included in standard BOPs.
Pros
It offers a variety of coverage options online, including a business owner’s policy (BOP), general liability insurance, and professional liability insurance
Business owner’s policies include extra expense coverage, which is not always standard
Cons
Requires using an online portal to request a copy of your insurance certificate
>> Get Your Business Insured With Chubb! >>
Best Business Insurance in California – Buyer’s Guide Types of Business Insurance in California Whether you run a small donut shop or a digital ad agency in California, having the right small business insurance is essential. Your coverage choices should reflect the size and industry of your business. Here are some common types of small business insurance:
California General Liability Insurance General liability insurance protects a business from accidental injuries and property damage caused to others. It also covers claims of copyright infringement, libel, and slander. This insurance pays for your legal costs, including attorney fees, settlements, and judgments.
California Professional Liability Insurance Professional liability insurance, also known as errors and omissions insurance, covers your small business if someone accuses you of making mistakes in your professional services, even if the claim is unfounded. For example, if a client alleges your tax preparation services caused them financial harm, this insurance covers your legal costs.
California Workers’ Compensation Insurance Workers’ compensation insurance in California covers your employees’ medical bills, lost wages, and other expenses if they are injured or become ill due to work-related tasks. The requirements for workers’ comp in California are as follows:
Agricultural employers : Must have coverage if they have six regular employees and/or 12 seasonal employees working over 30 days during the season but no more than 45 days in a calendar year.Construction employers : Required to have coverage if they have one or more employees, including business owners who are LLC members or corporate officers.General employers : Must have coverage if they have four or more employees, including business owners, corporate officers, or LLC members. >> NEXT: Affordable Business Protection >>
Other Types of California Business Insurance You’ll likely need additional types of business insurance to cover specific risks in California. For example, you’ll want to protect business property such as buildings, signs, inventory, and office equipment.
A BOP bundles general liability insurance with business interruption insurance and commercial property insurance. It’s typically cheaper to buy a BOP than to purchase each coverage type separately. Here’s what they cover:
Business interruption insurance: Covers lost business income if you can’t open due to a covered problem like weather damage. It also covers relocation costs if you need to move to a temporary location.Commercial property insurance: Protects the physical property of your business from theft and fire damage. It covers items like furniture, tools, equipment, business records, and inventory. You can build on a BOP by adding extra coverage as needed. Here are other types of California business insurance to consider:
Builder’s Risk Insurance : Provides property coverage for buildings and structures under construction, also known as “course of construction insurance.”Commercial Auto Insurance : Required if you drive a vehicle for work, as personal car insurance won’t cover business-related accidents.Commercial Umbrella Insurance : Extends coverage if your general liability insurance limits are exceeded. For example, if you’re sued for $800,000 but your general liability limit is $500,000, umbrella insurance covers the shortfall.Cyber Liability Insurance : Covers data breaches and cyber-attacks, paying for expenses like investigative services, data recovery, and legal costs.Directors and Officers (D&O) Insurance : Provides liability coverage for decisions made by company directors, officers, and board members, covering their legal costs if your business is sued.Inland Marine Insurance : Covers property transported overland by truck or train, paying for items that are damaged, lost, or stolen.Medical Malpractice Insurance : Covers claims of patient death or injury due to errors, required by professionals like physicians, dentists, optometrists, nurses, counselors, acupuncturists, and therapists.Product Liability Insurance : Protects your company if a product causes injury or property damage, covering costs from claims or lawsuits.Technology Errors and Omissions Insurance : Protects technology businesses from customer claims, essential for computer consultants, software developers, website developers, and IT contractors. >> Get Your Business Insured With NEXT! >>
Cost of Business Insurance in California The average cost of general liability insurance in California is $45 per month, according to Insureon. Professional liability insurance averages $61 per month, and workers’ compensation insurance averages $46 per month.
The exact amount you’ll pay for small business insurance depends on several factors, including:
Annual revenue
Coverage limits and deductibles
Number of employees
Your industry
How to Get Business Insurance in California Here are a few tips to simplify buying business insurance:
Determine What Coverage You Need : Start with a Business Owners Policy (BOP) for basic coverage, but consider adding more specific types of insurance based on your industry’s risks. For instance, if you handle sensitive information like customer names, addresses, and Social Security numbers, adding cyber liability insurance is crucial.Compare Quotes : Insurance costs can vary widely among providers for the same coverage amounts. Obtain quotes from multiple companies to find the best coverage and price. An independent agent can assist you in finding the optimal coverage.Review Your Policy Annually: As your business grows, risks may increase, causing additional coverage. For example, if you offer services requiring travel to clients’ homes for consultations, you’ll need to add commercial auto insurance to your policy. Regularly reviewing your policy ensures you have adequate coverage for new risks. How to Choose Business Insurance in California When deciding on the coverage you need and which provider to choose, consider the following risks:
Hurricanes: While California is less prone to hurricanes compared to other regions, storm-related damages, including wind damage, can still occur. Ensure your policy covers these types of damages.Flood damage: Standard business policies typically exclude flood damage, including hurricane-related storm surges. You may need a separate flood insurance policy or an optional flood insurance endorsement to an existing policy. Not all insurers offer flood insurance, so you might have to work with a different insurer for this coverage.Uninsured drivers: California has a high number of uninsured drivers. Adding uninsured or underinsured motorist protection to your commercial auto policy can protect your business against accidents involving such drivers. >> Ensure Your Business Future With NEXT >>
Best Business Insurance in California – FAQs How Much Does Business Insurance Cost in California?
The cost of your premiums depends on your coverage, policy limits, industry, and company size. General liability policies in California range from $45 to $400 per month.
What Are California’s Business Insurance Requirements?
In California, all businesses with employees must have workers’ compensation insurance. If your business uses vehicles, you’ll need commercial auto coverage.
What Coverage Is Required for Commercial Vehicles in California?
All vehicles in California must meet minimum liability requirements:
$10,000 in personal injury protection
$10,000 in property damage liability
Taxis require higher coverage, with $125,000 per person for bodily injury insurance (up to $250,000 per accident) and $50,000 in property damage protection.
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Bottom Line – Best California Business Insurance Selecting the right business insurance in California protects your operations against unforeseen risks and liabilities. Whether it’s coverage for property damage, liability issues, or employee-related risks, the variety of options available can cater to any business’s specific needs, from startups to established enterprises.
Key providers like NEXT , biBERK , and The Hartford offer comprehensive packages combining affordability and extensive coverage. The best insurance policy provides a safety net tailored to your business’s unique challenges and requirements.
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