California Business Insurance

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Small Business Coverage in the Golden State

With over 4.2 million small businesses employing more than 7.4 million people, small businesses represent a vital force in California’s economy. In fact, California’s small businesses make up 99.8% of the state’s businesses and employ nearly half of its total private workforce. (Source: SBA.)

The strength and breadth of California’s small businesses clearly shows their viability in CA. As the largest economy in the United States and the fifth largest in the world, California is ideal for budding entrepreneurs seeking to make their own mark. However, it’s imperative to be aware of regional laws and conditions that could put small businesses at risk and to secure proper liability protection.

Key California laws and conditions driving increased business liability rates

Even though small businesses in California continue to flourish, issues around tough government regulations, laws, and restrictions affect businesses throughout the state. While each small business is unique, insurance carriers have recommended that small businesses in California carry at least $500,000–$1,000,000 in commercial liability insurance to cover bodily injury, personal injury, advertising injury, and legal defense and judgments.

The amount of insurance coverage your California business should have depends on the type of business, your annual payroll, your annual revenue, your location, and other factors. To find out what coverage will cost for your business, answer some quick questions and get an instant quote.

California Workers Compensation laws and requirements

All employers in California are required to carry workers compensation coverage, even if they have just one employee. Workers compensation coverage helps pay the costs of benefits in the unfortunate event that an employee becomes sick or injured due to the work they perform. The benefits provided under workers compensation insurance can include medical care, temporary disability benefits, permanent disability benefits, supplemental job displacement benefits, death benefits, and a return-to-work supplement.

According to the National Federation of Independent Businesses (NFIB), executive officers and directors of businesses are required to be covered by workers compensation insurance, unless the business is fully owned by the directors and officers. Owners of businesses that do not have any employees can also opt out of coverage. Having adequate workers compensation coverage can not only protect your employees in the event of a work-related illness or injury, it can also protect your business. You cannot be sued by an injured employee if you have adequate coverage, as long as you didn’t cause the injury.

The majority of workplace injuries across all industries in California are one-time accidents (66% of all cases), repetitive motion injuries (28%), and work-related stress (6%). Of those injuries, 41% were due to slipping or falling, 15% were due to being struck by an object, 16% were a result of a car or machinery accident, 7% were from lifting injuries, and 21% were from other incidents.

The vast majority (72%) of injured workers in California hire a lawyer to represent them in workers compensation cases. Those lawyers are paid on a contingency fee basis, which means that the lawyer is paid a percentage of any awarded settlement rather than charging an hourly fee. This low fiscal barrier for litigation can lead to an increase in the number of employee lawsuits in the state.

Top industries covered in California

Hiscox covers businesses in all of California’s most prominent industries and offers plans that are tailored to the specific needs of each. Some of our most popular products in California include coverage for businesses providing photography, personal training, realtor, cleaning, and esthetician services.

More professions we insure in California

California Small Business Insurance

If you’re a small business owner in California and you are looking for liability insurance for your business, you have to come to the right place. Hiscox does not offer a one-size-fits-all insurance plan, instead we tailor our small business insurance in California to meet your needs. Hiscox small business insurance products include:

How can Hiscox help your California small business?

Hiscox does not provide one-size-fits-all coverage to its clients. Instead, we get to know industries in order to provide customized solutions that meet the specific needs of every small. We offer:

  • Flexible payment options: We offer monthly, quarterly, semi-annual and annual payment options (with no fees) to help you manage your cash flow.
  • Tailored insurance: We customize our insurance policies to meet your needs and save you money.
  • Claims responsiveness: When a covered claim is reported, Hiscox will immediately assign a dedicated claims representative to assist you.
  • Worldwide coverage: A business insured through Hiscox is covered for work done anywhere in the world, as long as the claim is filed in the U.S., a U.S. Territory or Canada.

Get a fast, free quote now and get that Hiscox confidence behind your California business. If you prefer, you can call us at 1-866-283-7545 and speak with a Hiscox licensed agent, Monday – Friday, 7am – 10pm ET.

Our products have been approved by the California Department of Insurance, and are underwritten by Hiscox Insurance Company Inc., and Illinois insurance company whose license number is 8754.

This information is provided to assist you in understanding the coverage we offer and does not modify the terms and conditions of any insurance policy, nor does it imply any claim is covered. Coverage is subject to underwriting and may not be available in all states.

Administered by Hiscox Inc., a Delaware corporations that is a licensed producer in all states and DC. 5 Concourse Parkway, 21st Floor, Atlanta, GA 30328. In California, Hiscox Inc. does business at Hiscox Insurance Agency (license no.: 0F09668).