Business Insurance California

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. 

A man pointing at notes on a whiteboard.

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. 

California Truck Insurance Policy Information

Commercial truckers insurance limits the losses in case of a covered peril. Many factors are included as to how much you will pay for the California truck insurance you purchase. These include the employees who drive the truck, the number of miles logged yearly, and the truck’s amount of time on the road.

Just make sure that this insurance policy information is explained by your insurance company, together with the accurate insurance quote applicable for your business. East Insurance Company provides coverage in San Diego, Los Angeles, Fresno, Sacramento, San Jose, and many other locations in California.

In case that you have included big commercial trucks for your business, like auto trailers, garbage trucks, dump trucks, car haulers, tank trucks, box trucks, tow trucks, and/or flatbed trucks, make sure that the truck insurance you’ll get is enough to enclose your liabilities. 

Insuring Your Truck With These Insurance Coverages

Like any other vehicle, California commercial insurance truck coverage is applicable in various iterations. Each of them is created with a particular goal of safeguarding the truck insurance policy owner from significant losses. Below are the different types of insurance coverage that may be included in your California commercial truck insurance.

Liability Insurance Coverage

Every time truckers operate their rig, they need to carry liability trucking insurance. It puts protections in appropriate places that help safeguard truckers and owners against unnecessary situations. Injuries, property damage, and other types of accidents can happen anytime while operating a trucking vehicle. 

Since trucks have more considerable weight and size, they usually tend to do more damage and injuries than car accidents. The liability trucking insurance coverage will pay for any legal defense if someone files a lawsuit after an accident.

Physical Damage Insurance Coverage

The repair cost, including the damages done in an accident, is prohibitive. But this insurance coverage will compensate for the repair cost as specified in your trucking commercial insurance policy limits. 

Though sometimes collision coverage can pay for the injuries and damages caused by the colliding incident between the objects or vehicles, this trucking insurance coverage is more comprehensive and still pays for non-collision damages. 

State law in California, specifically in Los Angeles, doesn’t require this type of insurance coverage for the trucking business. However, it’s still crucial to get one, predominantly if trucks are financed. It’s crucial to get California commercial truck insurance to guarantee appropriate compensation and fair insurance market value.

Uninsured/Underinsured Motorist Insurance Coverage

This insurance coverage occurs if other parties involved in an accident lack coverage to pay or compensate for damage repairs or don’t have any truck insurance. This type of policy is especially useful if you get in an accident with a driver whose liability limits are too low to cover the medical expenses of any injured parties.

Motor Truck Cargo Insurance Coverage

Suppose someone asks to transport their items using your trucking vehicle. In that case, you must provide a good service and take responsibility for the products or goods because they are in your possession. 

But if an accident or a collision happens, and the goods are damaged or dumped onto a roadway, the cost can be hugely expensive if you don’t have insurance. It’s a good thing that there is a motor cargo insurance coverage that safeguards you from different liabilities that occur with many risks of products being transported for others.

How Much Does Commercial Business Insurance in California Cost?

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 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.

Are you still confused about commercial business insurance in California or you need some help with getting a quote for your business? Contact us today and get all the information you need fast and for free!