Are you a business owner in California? If so, you understand the importance of having a good business insurance policy. Business insurance companies provide protection for your business in the event of a loss. For instance, you may need business insurance if someone gets hurt on your premises, your accounts are cyber-attacked, or your business is unable to operate for a time. Before you purchase a business insurance policy, read Benzinga's review of the best business insurance policies in California.
Quick Look: The Best Business Insurance in California
California is home to some of the world’s most important businesses — from major entertainment hubs like Disney and Netflix to cutting-edge tech companies like Apple and Google. But you don’t need to be on the Forbes 500 list to protect yourself, your operation and your employees from lawsuits and claims. Having California business insurance is an important part of your business policy.
Our guide takes a look at a few of California’s best business insurance providers and what you can expect to pay for coverage.
Best Business Insurance in California
There are multiple insurance providers that offer business insurance coverage in California. Here are a few of our favorite providers and what each does best.
1. The Hartford
The Hartford is an experienced insurance provider with over 30 years of experience providing business insurance policies. The Hartford offers multiple types of business insurance, from workers’ compensation coverage to commercial vehicle policies.
Don’t have a ton of time to compare insurance providers? You’ll love The Hartford’s Business Owner’s Policy (BOP). A BOP offers general liability coverage, commercial property insurance and business income coverage bundled together for 1 low rate. The Hartford also offers fast and free online quotes so you can get coverage in as little as a few minutes.
2. Simply Business
Simply Business lets you compare quotes and policy options from multiple companies. It works with top providers like Hiscox, Travelers and Axis Insurance Company.
You can get policy options online in less than 10 minutes, and if you need more guidance or have questions, its licensed agents are just a phone call away.
Simply Business is a great fit for small businesses and sole proprietors. You can look at its recommended insurance options based on the type of work you do, whether it’s landscaping, accounting or photography.
While Simply Business doesn’t handle your claim directly (the provider you decide to purchase from does), it’s there to help you if you run into any issues. It can get you new copies of your policy documents and help you get in touch with your provider if you need assistance.
If reviewing or buying business insurance has been on your to-do list, Simply Business is an excellent place to start. You can get a quote while you take a coffee break.
Some business policies include coverage a self-employed professional with no employees may never need. If you’re self-employed, consider a business insurance policy from Progressive.
Current Progressive homeowners insurance customers can add a simple commercial home-based business policy for a fraction of the price of an entirely new business policy. Progressive even offers individual professional liability options and insurance for online businesses to protect against data leaks or hacks.
Types of Business Insurance
There are multiple types of business insurance. The specific insurance coverages you need will depend on how many employees you have, the products you sell, your physical location and more. Let’s take a look at a few of the most common types of insurance you’ll need for your business.
- General liability insurance protects you against some of the most common types of lawsuits you might see as a business owner who operates a physical store or business space. Most general liability policies include coverage for customer injuries, customer property damage and more. Your general liability insurance can also help you fight against claims of libel or slander against your business.
If you lease your commercial space, your property owner may require you to have at least some form of general liability insurance, especially if your business is open to the general public. Any type of business can benefit from a general liability insurance policy.
- Product liability insurance protects you against lawsuits alleging harm or injury as a result of a defective product you sell. You may want to consider purchasing a product liability insurance policy if your business manufactures, wholesales or distributes a retail product.
- Commercial property insurance protects your business against physical damage to your property or merchandise. Commercial property insurance is similar to homeowners insurance, except that it’s for a business property instead of residential. If your business has a significant physical presence or you own a large number of tools or merchandise, you should consider a commercial property insurance policy.
Like a homeowners insurance policy, your commercial property insurance comes with a list of covered perils that you’re covered under. A peril is a hazard or event that causes the loss. Most commercial property insurance policies include coverage for damage from fires, hail, windstorms, vandalism and more.
- Workers’ compensation insurance is a type of coverage that helps cover medical expenses for employees who are injured while on the job. As a California-based business, you’re required to purchase workers’ compensation as soon as you hire your 1st employee. If you’re an independent contractor or sole proprietor, you’re not legally required to hold a workers’ compensation policy.
- Professional liability insurance protects you and your business against claims of malpractice, negligence and clerical errors. Professional liability insurance is common among practitioners who provide professional services to clients, like doctors and lawyers.
Cost of Business Insurance in California
The specific price you’ll pay for your business insurance will vary depending on the type of coverage you need, which part of California your business is located in, the number of employees you have and more. As a general rule, here’s what you might expect to pay for a few different coverage types.
You don’t want to pay more for their insurance than they need to. You might be able to get a discount on your business insurance for:
- Paying your premium in full. Most insurance companies offer discounts if you pay a year’s worth of insurance premiums upfront because this eliminates the possibility that you’ll miss a payment later down the line.
- Bundling. Do you have a home, auto or another type of insurance policy under your name? If you do, you might want to consider buying your business insurance from the same insurance provider that services your current policy. Most major insurance providers offer discounts when you bundle multiple types of insurance together.
- Keeping continuous insurance. If you’ve kept a current business insurance policy for at least 12 months, you might be able to save on your new policy.
Insure Your Business Today
If this is your 1st time buying insurance for your small business, you might want to get a quote from a few competing business insurance providers. Like most other types of insurance, every insurance company uses its own individual formula to determine how much you’ll pay for coverage.
Most insurance companies now allow business owners to get a quote online or with a quick phone call. You have no idea how much you might be able to save until you start comparing your options.
Do I really need business insurance?
If you own a business, it is wise to get business insurance. A business policy can help protect you in unforeseen events.
What's the most important type of business insurance?
Many people believe that general liability is one of the most important types of business insurance.
What is product liability insurance?
Product liability insurance protects you if a product that you produce or sell harms one of your customers.