Commercial Business Insurance in California: The Ultimate Guide
California is a home for small and medium-sized businesses. According to the Small Business Administration (SBA), there are 4 million small businesses in California that account for almost 99.8% of all businesses in the US.
In order to encourage competent employees to work, companies in California rely on business insurance. It is their way to protect their employees, increase their productivity, create a harmonious relationship, and strengthen connections.
Here’s everything you need to know about commercial business insurance in California.
What is Commercial Business Insurance in California?
Once you decide to get insurance coverage for your business, it is important to note that not all insurance companies are the same. It would be best to know the coverage that you want for your employees.
Having California business insurance means that you are well knowledgeable, and proactively thinking about protecting your business against financial losses.
Your business insurance will help you cover expenses in case you encounter accidents like property damage, theft, lawsuits, and professional errors. It also protects your employees financially from health risks, and it gives them the motivation to work effectively.
Types of Business Insurance in California
When researching small business insurance in California, the first thing you should figure out is what kind of policy you need. As mentioned above, not all insurance companies are the same and there are insurance services that aim to mitigate the risks of your business. You should also know where you need your business insurance, for example, business insurance in San Jose, or Los Angeles, etc.
You need to step up for your business and get business insurance in California to move forward. Here are the policies and coverage under its types to understand how business insurance works.
General Liability Insurance California
General liability insurance in California protects the financial image and interests of your business or company and you as the business owner in case you face formal lawsuits or any third-party claims. It is also applicable once you file lawsuits. This is the most common commercial business insurance in California and it covers all expenses related to bodily injury, property damage, advertising and personal injury.
Commercial Auto Insurance California
Commercial auto insurance in California covers physical damage and liability for your business vehicles. This type of policy is especially useful for business owners in California who use vehicles for business purposes, as most personal auto policies don’t cover vehicles used for business.
Workers’ Compensation Insurance California
Workers’ comp insurance is required by law in California for all businesses that employ one or more people. Workers’ compensation insurance is useful as it covers medical costs and lost wages of employees who got injured or fell ill on the job.
Business Owners Policy California
Business Owners Policy or BOP is an insurance policy that combines property and liability coverage into one. BOP is especially useful for owners of small to medium-sized businesses who own or rent the building in which they do business.
Professional Liability Insurance California
Professional liability insurance is also known as errors and omissions insurance. This type of policy protects businesses from negligence claims and covers defense costs. Professional liability insurance is recommended for businesses in California that provide professional services; for example, accounting or consultation.
Cyber Insurance California
Cyber insurance covers businesses in case of a data breach. The coverage includes investigative services and data recovery, and third-party coverage for legal and settlement costs. This policy is recommended for all businesses in California that store or manage customer data.
How Much is Business Insurance in California?
On average, commercial business insurance in California costs $2,131 per year.
There are several factors that impact the price of California small business insurance, including:
- Industry
- Coverage needs
- Size
- Location
The most important factor, however, is the level of risk that is associated with the type of work. For example, if you are a contractor, your business is considered a higher risk because your work includes the use of heavy machinery.
What Business Insurance is Required by Law in California?
Besides workers’ comp insurance, all business-owned vehicles in California must be covered by commercial auto insurance.
According to the law in California, the minimum liability requirements for auto insurance are $5,000 property damage liability per accident, $15,000 bodily injury liability per person, and $30,000 bodily injury liability per accident. Trucking companies may need additional coverage to comply with these regulations.
Finally, while every small business is unique, having commercial business insurance in California could be a smart move as it covers bodily, personal, and advertising injuries, as well as legal defense fees.
How Much is General Liability Insurance in CA?
On average, general liability insurance in California costs $2,131 per year or $178 per month. The cost of the policy will depend on several factors, including city size and population.
Does California Require Small Business Insurance?
California state law only requires workers’ comp insurance. Any business that has employees is required to have this type of policy while other coverages aren’t legally required.
Are you still confused about commercial business insurance in California or need some help getting a quote for your business? Contact us today and get all the information you need fast and for free!
