Thimble is California's best liability insurance provider with rates starting at $24 per month and a MoneyGeek score of 94 out of 100. Hiscox, NEXT, Nationwide and The Hartford are also great options for general liability policies.
Best General Liability Insurance in California
Updated: June 20, 2025
Advertising & Editorial Disclosure
Key Takeaways
The best general liability insurance company in California is Thimble, which balances affordable LLC rates with good customer service.
The cheapest general liability insurance for sole proprietors in California is offered by Thimble at $24 per month. For LLCs, NEXT is the most affordable option at $38 a month.
General liability insurance costs in California depend on your industry, and we found they can range from $33 to $3,785 per month on average.
Best Cheap General Liability Insurance in California
| Thimble | 94 | $24 | $49 |
| Hiscox | 90 | $32 | $183 |
| NEXT | 90 | $27 | $38 |
| Nationwide | 85 | $45 | $354 |
| The Hartford | 84 | $45 | $429 |
*Rates were based on a $1,000,000 per occurrence and $2,000,000 aggregate limit for a software development company.
Thimble: Best Overall
pros
Flexible coverage options
Affordable rates regardless of business size
Low customer claims frequency
cons
Online only customer service
COMPANY HIGHLIGHTS
Thimble is the top overall provider for general liability insurance in California, according to our study. It offers affordable rates for both sole proprietors and LLCs, with the lowest for sole proprietors in the state at $24 monthly. It's also a strong coverage option due to its flexibility and you can pause your coverage when needed.
NEXT: Cheapest Overall
pros
Easy fast buying process
Very cheap rates overall, regardless of business size
Business-insurance-only focus
cons
Higher customer complaint frequency
COMPANY HIGHLIGHTS
NEXT is our pick for the cheapest overall general liability insurance in California. It has the second-cheapest rates for sole proprietors at $27 per month and the lowest rates for LLCs at $38 per month. While its claims ratio was higher than other companies we've reviewed in the state, their overall buying process was smooth and you can receive proof of insurance within the same day.
How Much Is General Liability Insurance in California?
California's average general liability insurance policy costs around $33 per month for sole proprietors and $211 per month for LLCs. This only represents software development companies, and the costs can vary widely by industry.
| Cleaning | $2,714 | $91 |
| General Contractor | $3,785 | $199 |
| Software Development | $211 | $33 |
*Rates are based on a $1,000,000 per occurrence and $2,000,000 aggregate coverage policy for general liability.
Factors That Impact General Liability Insurance Costs in California
General liability insurance costs can fluctuate based on many different factors in California. In the list below, you can see these factors and their impacts on your coverage costs.
Policy limits
Coverage limits can influence insurance premiums. Opting for higher limits tends to raise costs, while selecting lower limits usually leads to more affordable premiums.
Number of employees and payroll costs
Businesses with a large workforce and high payroll expenses often see an increase in general liability insurance costs. This is evident in both LLCs and sole proprietorships.
Business location
Where your business is located can affect your insurance expenses. State-level average rates can differ among cities, so consider these variations when assessing your coverage needs.
Claims history
A record of multiple claims can make a business seem riskier to insurers, which results in higher premiums.
Industry
Industries with higher risks, such as construction, often face elevated general liability insurance costs.
California General Liability Insurance: Buyer's Guide
To simplify your understanding of general liability insurance, we've created a short guide detailing how to get the best coverage, defining what it covers, listing requirements in California and explaining how much coverage you should consider getting.
How to Find the Best General Liability Insurance Company
To help you find the best small business insurance regardless of your industry, we've created a guide to simplify your coverage search.
- 1
Define your coverage needs
Determine your risk of a liability claim by considering your industry, the product/service you are offering, the types of consumers you're selling to, the size of your business and its effect on your industry. Measure the frequency and costs of common claims for your industry to understand coverage options.
- 2
Research average costs for your business
To evaluate business insurance companies, research average costs for your particular business. Knowing average expenses will help you determine whether a company is saving you money.
- 3
Consult similar businesses
Check with your business community for recommendations that suit your specific needs and to understand what claims are common within your industry. They may also suggest ways to mitigate risks associated with general liability insurance.
- 4
Compare multiple options through different means
Compare multiple companies using online comparison sites and brokers to get a comprehensive view of pricing.
What Does General Liability Insurance Cover and How Does It Work?
General liability insurance coverage consists of per occurrence and aggregate limits. Per occurrence refers to the maximum a single claim can reach, while the aggregate limit is the total coverage you can get per year. This type of policy includes the following:
Bodily injuries or property damage on business property
Legal fees for bodily injury or property damage that your company may be responsible for
Damages to leased or rented business property
Bodily injury or property damage caused by your product or service
Libel, slander or reputational harm legal defense
Legal fees for copyright infringement accusations
Is General Liability Insurance Required in California?
General liability insurance isn't required by state law. You may need coverage to apply for a professional license, sign a contract with a larger company or sign an office lease. While not an exhaustive list, the following industries tend to fall into these categories:
- Medical
- Accounting
- Real estate
- Insurance
- Contracting
- Engineering
- Marketing
- Law
- Consulting
- Media/Communications
How Much General Liability Insurance Do I Need?
Most small businesses need a standard policy with $1 million protection per occurrence and a $2 million annual limit, which protects a business for a year. However, your industry's risks and business size might require higher coverage.
WHO MAY NEED MORE COVERAGE
Certain businesses face more risks and have pricier general liability insurance claims. These include companies in health services, building trades, contracting, hotels or retail. If your company is part of these groups, consider more insurance coverage. Larger businesses with many workers or those offering products and services to many people should check how much risk they have. They might need more coverage than usual.
Best General Liability Insurance in California: Bottom Line
The best general liability insurance companies in California are Thimble, Hiscox and NEXT. Compare several quotes to ensure you get the best deal possible.
General Liability Insurance in California: FAQ
Below, we address frequently asked questions regarding general liability insurance in California:
Which company has the best general liability insurance in California?
MoneyGeek’s leading choice for general liability insurance in California is Thimble, which earned an overall score of 94 out of 100. Your ideal insurance depends on your business size, number of employees and coverage requirements.
Which company has the cheapest general liability insurance in California?
For sole proprietors, Thimble offers the most affordable rates in California, averaging $288 annually. For LLCs, NEXT is the cheapest option at $456 per year. These rates are based on our analysis of software development companies with $1 million per occurrence and $2 million aggregate coverage limits.
Does California require businesses to have general liability insurance?
In California, while businesses aren't legally required to carry general liability insurance, getting coverage is a smart move to protect against possible financial claims from others.
How We Chose the Best General Liability Insurance Providers in California
We broke down our scores into these categories and weights:
- LLC cost (55% of score)
- Sole proprietor cost (5% of score)
- Customer satisfaction (25% of score)
- Financial strength (10% of score)
- Quote process time (5% of score)
For all business insurance companies, we assumed software development industry LLCs with 20 employees. We based customer satisfaction and financial strength scores on NAIC and A.M. Best ratings. Quote process scores came from our MoneyGeek experts' personal experiences.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.