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California Business Insurance
Customized protection for your California business
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Small business insurance in California
Business owners in California should consider several types of business insurance to cover legal and financial risks. Work-related incidents, such as an employee injury or a commercial auto accident, can disrupt your operations. But with the right insurance, your business can recover quickly and move forward with confidence.
There are 4.3 million small businesses in California that account for 99.8% of all companies in the state, according to the Small Business Administration (SBA). Together, they employ 7.6 million people and are legally required to provide workers' compensation insurance.
At Progressive Commercial, we understand complex California business insurance requirements and can help you get a customized quote that reflects your unique needs. Whether you own a startup in the Bay Area or a contracting company in the Valley, you can count on us to connect you with the right coverage.
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Types of California business insurance
General liability insurance in California is the most common type of business coverage, and nearly all businesses in the state should have it. It protects against third-party bodily injury, property damage, and personal and advertising injury.
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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' 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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A BOP combines property and liability coverage into one convenient plan. It's a popular choice for small to medium-sized businesses that own or rent property and need coverage for furniture, tools, and equipment.
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Also known as errors and omissions (E&O) insurance, professional liability protects businesses from claims of negligence and helps pay for legal costs. California companies that provide professional services, such as consultation or accounting, should consider this coverage.
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Cyber insurance protects businesses in the event of a data breach or cyber attack. It includes first-party coverage for things like investigative services and data recovery. It also has third-party coverage for legal fees and settlement costs. Businesses that store or manage customer data, such as credit card numbers, could benefit from this insurance.
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How much does business insurance in California cost?
In 2024, the national median cost of business insurance for new Progressive Commercial customers ranged from $42 per month for professional liability to $80 per month for workers' comp.
The cost of business insurance in California will vary for your business, depending on your coverage needs, size, and location. For example, a company in San Francisco might pay more than one in Fresno because of the city's higher cost of living and dense population, which can increase the likelihood of liability claims. Additionally, a business with employees might pay more than one without.
The most influential cost factor is the level of risk associated with your type of work. For example, insurers typically consider manufacturers and certain contractors higher risk because their work is physical and includes heavy tools and machinery. These professions can expect higher premiums due to their increased exposure.
Learn more about the factors that affect business insurance rates, and start an online quote to find the right coverage at a competitive price.
California business insurance requirements
Most types of insurance aren't required by law, except for workers' compensation in California. If your business has employees, you'll need to get workers' comp through the state insurance fund or a private carrier, like Progressive Commercial.
While California doesn't require businesses to carry other coverages, such as general liability, many clients and employers do. These standards frequently appear in contracts that specify the coverage types and limits you need 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.
Explore more essential business insurance coverages.
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)
- 2025 California Small Business Profile (U.S. Small Business Administration)
- 2023 California Workplace Injury Data (U.S. Bureau of Labor Statistics)
California professions we insure
We help small business owners from a variety of industries, including these common professions:
- Contractors
- Landscapers
- Technology/IT specialists
- Cleaning services
- Construction workers
- Handymen
- Restaurants
- Event planners
Browse more examples of professions we insure.
Why choose Progressive Commercial
Options
As your business evolves, your insurance should too. Our agents will work with you to ensure you get protection that meets your needs and budget at every stage.
Experts
As America's #1 commercial auto insurer,* you can trust us with all your California business insurance needs. Our team of in-house specialists will make sure you're getting the right coverage for your business.
Convenience
Whether you're looking for a single California business insurance policy or a combination of coverages, we make it easy to get a quote. Explore your options online or call us to speak with an agent.
Business insurance throughout California
We can customize business insurance wherever you live in the Golden State, including:
- San Diego
- Los Angeles
- Fresno
- San Francisco
- San Jose
- Long Beach
- Sacramento
- Oakland
- Bakersfield
- Anaheim
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