Small businesses employ nearly half of all California workers and account for over 99% of all businesses. 1,3 Small business owners rely on business insurance to run profitable operations and protect their employees.

It's critical to understand that not all insurance companies are created equal when looking for commercial insurance. Over 1 million small business owners have benefited from our help, which is backed by more than 200 years of experience.

This article will teach you how to get California business insurance and how it can help you run a successful business.

Small business insurance cost in California

Customers of Huckleberry pay an annual median premium of $1,424 for workers' compensation. (A standalone general liability policy costs $665 on average, while a business owner's policy costs $502).

Rates vary greatly, and your costs will vary depending on where your company is located, the type of business you run, and the policy limits you select.

Factors influencing the cost of your commercial insurance

The following are some of the factors that influence the cost of insurance. The most important factors are typically your profession, the number of employees, and the requirement for insurance.

A line of work.

Different business models are riskier in different ways. A higher risk business type can expect to pay more than one with a lower risk reputation. Contractors and tree trimmers are both dangerous jobs. Their work is physically demanding and frequently involves the use of power tools on the properties of others. These elements increase exposure.

These risks are not shared by a home-based financial advisor, so they are not factored into their fee. Will they be paying less? Perhaps, but there is no guarantee. Professional services are subject to a different type of risk, so professional liability insurance is frequently required to protect themselves.

The total number of employees

Businesses with a large number of employees can expect to pay more for insurance because they are more likely than those with fewer or no employees to file claims. Each additional employee increases the likelihood of mishaps and accidents that could lead to a claim.

If a business employs people, it must carry workers compensation insurance. This is required in almost every state, which raises the cost of your business insurance.

Insurance requirements

The level of coverage you choose will influence your premium. For example, a $1 million/$2 million aggregate small business policy will typically cost more than a $1 million/$1 million aggregate policy.

Options for California Business Insurance Coverage

Let's go over the primary benefits of business insurance.

1.Business Owner's Policy in California

A Business Owner's Policy (BOP) is a type of insurance foundation that is commonly used by California businesses. This guarantees that they have:

1. Liability insurance.

2. Insurance for commercial property.

3. Business income protection.

A business operating plan (BOP) can assist you in defending your small business in California against claims that may arise during normal business operations.

A BOP should be obtained if your company is at risk of being sued for causing bodily harm or property damage to a third party.

possesses a physical address, whether rented or owned.

Uses potentially tainted or stolen material, whether physical or digital.

Commercial Property Insurance in California.

Commercial property insurance covers both the structure you own or rent for your business and the equipment you use to run it.

California Business Income Insurance

When covered property damage prevents you from opening your California business, business income insurance replaces your lost income (Fire, Wind, and Theft).

The top five commercial insurance providers in California

In California, there are thousands of companies that provide business insurance. Choosing the best company for the right coverage may be more difficult for a small business than it should be. We conducted research and selected the top five businesses for your consideration.

Hiscox

Since its inception in 1901, Hiscox has offered a comprehensive range of commercial insurance products. Hiscox offers the best professional liability insurance in California to meet your professional needs. Furthermore, the company creates all of GEICO's commercial insurance policies.

Costs: Hiscox's general liability insurance has a yearly minimum premium of $350. The annual minimum premium in a BOP increases to $500 when combined with property insurance. The cost of professional liability insurance begins at $280 per year.

Liberty Mutual Insurance

Liberty Mutual Insurance Company is a major insurance company in the United States. They have been in business since 1912 and serve all California businesses. With such extensive experience, the company provides the best general liability insurance to its clients. They also offer commercial auto insurance, umbrella insurance, and other coverages to California businesses.

The BBB's B+ rating attests to Liberty Mutual's trustworthiness. It also has a lot of favorable online user feedback.

Costs: The majority of businesses, on the other hand, can expect to pay premiums ranging from $200 to $3,000. The term "premium" refers to the amount of money that can be saved by purchasing a product or service.

The only way to obtain cost information from Liberty Mutual is to work with an agent to obtain a quote.

CoverWallet

Online shopping center You can buy business insurance through CoverWallet. The company does not provide insurance; rather, it connects business owners with reputable commercial insurance providers who offer the required coverage. The company takes pride in making purchasing business insurance as simple as possible for business owners.

Costs: By entering the necessary details, such as the business's location and annual revenue, into Coverwallet's online quoting system, users can receive estimated quotes. Coverwallet can provide you with a list of potential insurance companies that can provide you with the best coverage based on your industry, location, revenue, and risks.

The Hartford

The Hartford is our top pick because, unlike its competitors, it can provide more coverage inclusions in its small business insurance policies and industry-specific packages. Customers praise its small commercial line experts for their service and claim support.

Costs: The Hartford, like most insurance companies, does not reveal specific pricing until customers request a quote. Stretch, Stretch Plus, Super Stretch, and Premier Stretch are the four levels of coverage added to the company's BOP endorsements recently. Stretch is the most basic level and typically adds about $100 to a BOP.

Embroker

Embroker, one of our top business insurance brokers, started out as an online broker. It has since created a few unique products to meet the insurance needs of startups. Because of its collaboration with reputable carriers and internal development, Embroker has a competitive advantage in terms of application speed. Management liability insurance, which is typically placed with other carriers over the course of several weeks, is now immediately available to tech companies.

Embroker reserves the right to charge an additional fee for its services. The company also provides a risk assessment to assist business owners in identifying areas where premiums can be reduced. Startups supported by venture capital firms can also earn up to 25% premium credit by participating in Embroker's Venture Capital Program.

Conclusion

We looked for characteristics like nationwide availability, adaptable coverage options, competitive pricing, and positive customer feedback when looking for the best small business insurance providers. Make sure the provider you choose for your small business is knowledgeable about your industry in order to provide the best protection against your key risks.