Find California business insurance in three easy steps
Fill out an online application that reaches top carriers
Review insurance requirements in California
Compare quotes and buy affordable coverage today
Recommended insurance policies for small businesses in California
The following types of business insurance defend California small business owners against common lawsuits and other top risks.
General liability insurance
A general liability policy covers common third-party risks for small businesses in California, including customer property damage and injuries. Commercial leases often require this coverage.
- Customer injuries at your company
- Damaged customer property
- Advertising injuries, such as slander
Errors and omissions insurance
This policy is also called professional liability insurance. It protects professionals against legal defense costs from mistakes, missed deadlines, and oversights.
- Work errors and oversights
- Professional negligence lawsuits
- Late or incomplete work
Professional liability insurance
This type of coverage protects California businesses against lawsuits related to the quality of their professional services or advice. It's sometimes referred to as E&O insurance.
- Mistakes and oversights
- Breach of contract
- Late or undelivered work
Business owner’s policy
A BOP bundles commercial property insurance and general liability coverage. It's often the most cost-effective type of commercial insurance for a California small business.
- Lawsuits from customer accidents
- Stolen or damaged business property
- Business interruption insurance
Workers' comp insurance
California requires workers’ comp for businesses with employees and licensed contractors. Personal health insurance won’t cover work injuries, so this coverage is important for every business owner.
- Employee medical expenses
- Disability benefits for lost wages
- Legal fees from workplace injuries
Cyber insurance
This policy protects California small businesses against financial losses from data breaches and cyberattacks. It’s also called cybersecurity insurance.
- Data breach investigations
- Client notification expenses
- Fraud monitoring costs
Commercial auto insurance
This policy is required for vehicles owned by California small businesses. It helps cover financial losses from an accident, along with other types of damage.
- Injuries caused by your vehicle
- Property damage caused by your vehicle
- Vehicle theft and vandalism
Fidelity bonds
A fidelity bond reimburses your clients in the event of employee theft. Your clients may ask you to secure a bond before they will work with your business.
- Embezzlement
- Forged signatures
- Theft of cash or property
Commercial umbrella insurance
An umbrella policy boosts the coverage of your general liability, commercial auto, and employer's liability insurance policies. It can help your small business comply with requests for higher liability limits.
- Personal injury lawsuits
- Auto accident lawsuits
- Workplace injury lawsuits
Looking for different coverage? Check out our other policies.
What are the insurance requirements for small businesses in California?
Workers' compensation insurance
California state law requires all businesses with employees to carry workers’ compensation insurance. This policy covers medical bills for work-related injuries and illnesses.
Contractors who are licensed in a construction trade, such as carpentry, concrete, HVAC systems, or plumbing, must carry workers' comp or a Certification of Self-Insurance even if they don't have any employees.
Most policies include employer's liability insurance, which helps pay for lawsuits related to employee injuries.
Commercial auto insurance
Vehicles owned by limited liability companies (LLCs), startups, and other businesses in California must be covered by commercial auto insurance.
California's requirements for auto liability insurance coverage are:
- Bodily injury liability per person: $30,000
- Bodily injury liability for more than one person: $60,000
- Property damage liability: $15,000
Personal, rented, and leased 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 commercial general liability insurance or a business owner's policy.
How much does small business insurance cost in California?
Commercial insurance can be affordable for small business owners with low risks. Based on policy data from TechInsurance customers in California, the average premiums are:
General liability: $42 per month
Workers' compensation: $63 per month
Professional liability / E&O: $94 per month
Factors that influence the cost of business insurance include:
- Type of business
- Business operations
- Number of employees
- Location, such as San Jose or San Diego
- Policy limits and other coverage options
- Claims history
Why California business owners choose TechInsurance
Gain financial protection
The costs from a lawsuit or data breach can overwhelm a small business. Protect against common risks with the right business insurance coverage.
Find insurance policies for your small business in California
Whether you need coverage to sign a contract, rent an office, or get a license, TechInsurance can help you find the right business insurance policies. Our insurance agents are licensed in California and can help you find affordable policies from top-rated insurance carriers, such as errors and omissions insurance, general liability coverage, and more.
Get started today by filling out our easy application. You can chat with an agent about your business insurance quotes and get answers to any questions. When you're ready, pay for a policy online and get a certificate of insurance (COI) immediately to show clients that your business is protected.
Verified small business insurance reviews
Hear from business owners like you who purchased insurance coverage.