California Business Insurance

Customized protection for your California business

California business owners should consider several types of business insurance for legal and financial reasons. A variety of work-related incidents, such as an employee injury or a commercial vehicle accident, could result in debts that threaten their business operations and livelihood.

There are 4.1 million small businesses in California that account for nearly 99.8% of all businesses in the state, according to the Small Business Administration (SBA). These small businesses collectively employ 7.5 million people and are required by California state law to protect them with workers’ compensation insurance.

The Progressive Advantage^® Business Program will help you get a customized California business insurance quote that reflects your unique needs.

Types of CA business insurance

General Liability

This is the most common business insurance coverage, and nearly all businesses in California should have it. It protects against third-party bodily injury and property damage, as well as advertising and personal injury.

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Commercial Auto

Commercial auto provides liability and physical damage coverage for your business vehicles. Most personal auto policies don’t cover vehicles used for business, which includes transporting supplies or traveling between job sites.

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Workers' Compensation

Workers’ comp is required in California for all businesses with one or more employees. This coverage helps pay for medical costs and lost wages of employees who become injured or ill on the job.

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Business Owners Policy (BOP)

A BOP combines property and liability coverage into one easy-to-manage package. It’s popular among owners of small to medium-sized businesses who own or rent the building in which they do business.

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Professional Liability

Also known as errors and omissions (E&O) insurance, professional liability protects businesses from claims of professional negligence and helps pay for defense costs. California businesses that provide professional services, such as consultation or accounting, should consider this coverage.

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Cyber Insurance

Cyber insurance protects businesses in the event of a data breach. It includes first-party coverage for things like investigative services and data recovery and third-party coverages for legal fees and settlement costs. Businesses that store or manage customer data, such as credit card numbers, should consider this coverage.

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How much does business insurance cost in California?

The cost of business insurance in California depends on a business’s industry, coverage needs, size and location. For example, a business in San Francisco can expect a different rate than one in Los Angeles. Additionally, a business that has employees might pay more than a business that doesn’t.

However, the most influential cost factor is the level of risk associated with the type of work that’s done. For example, manufacturers and certain contractors are considered higher risk because their work is physical and includes the use of heavy tools and machinery. These types of professions can expect to pay more for coverage due to their increased exposure.

Learn more about the factors that influence business insurance rates. You can also get a quote online to find out what you’ll pay for your unique situation.

California business insurance requirements

Most coverages aren’t required by California state law except for workers’ compensation. Any business that has employees is required to have workers’ comp coverage through the state’s insurance fund or through a private insurance carrier.

While California doesn’t require businesses to carry other coverages, such as general liability, many prospective clients and employers do. Their requirements frequently appear in contracts that specify the coverage types and limits you must carry before you’re allowed to start working for them.

We can help you secure these and any other California business insurance coverages you might need. Simply call us or start a quote online.

Resources for California small business owners:

Commercial Insurance Guide (California Department of Insurance)
Workers’ Compensation in California (California Department of Insurance)
Workers’ Comp FAQs (California Department of Industrial Relations)
2023 California Small Business Profile (U.S. Small Business Administration)
2018 California Workplace Injury Data (U.S. Bureau of Labor Statistics)

California professions we insure

We help small business owners from a wide variety of industries, including these common professions:

Browse more examples of professions we insure.

Why choose Progressive?

Options

We can help you secure coverage at any stage of your business’s development with the flexibility to adjust your policy as your business changes. Our agents will work with you to make sure you’re getting protection that meets both your needs and budget.
Experts

As the #1 commercial auto insurer in America^*, you can trust us with all your business insurance needs. Our team of specially trained, in-house agents can assist you every step of the way to make sure you’re getting the best coverage for your business.
Convenience

There are several ways to get a quote, whether you need a single California policy or a combination of business insurance coverages. Simply start a quote online or call us to speak with an agent.