NEXT tops our analysis of California business insurance providers because of its strong customer service and comprehensive coverage. The Hartford and Simply Business are also reliable options for small business owners across the state.
Business Insurance in California
NEXT tops our California business insurance rankings with a MoneyGeek score of 4.63 out of 5.
Find affordable coverage that protects your small business in California below.
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Updated: August 25, 2025
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Key Takeaways
Small business owners can get the best business insurance in California from NEXT, The Hartford and Simply Business.
The best business insurance in California depends on your industry risks, employee count and preferred coverage limits.
To find the best coverage, assess your risks, compare multiple quotes, research provider service quality and maximize available discounts.
Best Business Insurance Companies in California
| NEXT | 4.63 | 3 | 1 | 2 |
| The Hartford | 4.62 | 1 | 2 | 3 |
| Simply Business | 4.49 | 5 | 5 | 1 |
| Nationwide | 4.47 | 8 | 2 | 4 |
| Coverdash | 4.41 | 6 | 6 | 2 |
| biBERK | 4.39 | 8 | 2 | 5 |
| Progressive Commercial | 4.32 | 4 | 7 | 5 |
| Thimble | 4.31 | 2 | 8 | 5 |
| Hiscox | 4.28 | 7 | 4 | 6 |
| Chubb | 4.27 | 9 | 3 | 4 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Best by Coverage Type
The Hartford leads California businesses with top-rated general liability coverage and business owner's policies (BOP). NEXT stands out for professional liability insurance and workers' compensation coverage.
| Business Owners Policy | The Hartford | 4.68 |
| General Liability | The Hartford | 4.60 |
| Professional Liability (E&O) | NEXT | 4.73 |
| Workers Compensation | NEXT | 4.59 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Best California Small Business Insurance Reviews
Our research reveals the top three business insurance providers in California based on coverage options, rates and customer service. Here's what makes these insurers stand out for small business owners seeking comprehensive protection.
NEXT
Best Customer Experience
MoneyGeek Rating
4.6/ of 5
4.5/5Affordability
4.7/5Customer Experience
4.8/5Coverage Options
Average Monthly Cost of General Liability Insurance
$115This rate is for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Monthly Cost of Workers' Comp Insurance
$76This rate is for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Survey: Claims Process
3.9/5Ranked #4 nationallyOur Survey: Likely to Be Recommended to Others
4.8/5Ranked #1 nationally
The Hartford
Best for Affordability
MoneyGeek Rating
4.6/ of 5
4.6/5Affordability
4.6/5Customer Experience
4.7/5Coverage Options
Average Monthly Cost of General Liability Insurance
$91This rate is for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Monthly Cost of Workers' Comp Insurance
$77This rate is for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Survey: Claims Process
4.5/5Our Survey: Likely to Be Recommended to Others
4.5/5
Simply Business
Best for Coverage Availability
MoneyGeek Rating
4.5/ of 5
4.5/5Affordability
4.2/5Customer Experience
4.9/5Coverage Options
Average Monthly Cost of General Liability Insurance
$107This rate is for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Monthly Cost of Workers' Comp Insurance
$80This rate is for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Survey: Claims Process
3.7/5Our Survey: Likely to Be Recommended to Others
4.2/5
Cheapest Business Insurance Companies in California
The Hartford leads California's business insurance market with rates starting at $94 monthly ($1,122 annually). Thimble and Simply Business follow as affordable alternatives, with monthly premiums of $104 and $108 respectively. See the complete list of providers and their rates in the table below.
| The Hartford | $94 | $1,122 |
| Thimble | $104 | $1,250 |
| Simply Business | $108 | $1,294 |
| Progressive Commercial | $111 | $1,327 |
| NEXT | $111 | $1,333 |
| Coverdash | $113 | $1,351 |
| Nationwide | $113 | $1,357 |
| biBERK | $116 | $1,386 |
| Hiscox | $120 | $1,436 |
| Chubb | $131 | $1,573 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest General Liability Insurance Companies in California
California business owners can find the cheapest general liability coverage through The Hartford at $91 monthly. Simply Business offers the second-lowest rate at $107 per month. Compare all provider rates in the table below.
| The Hartford | $91 | $1,095 |
| Simply Business | $107 | $1,280 |
| Nationwide | $108 | $1,299 |
| Progressive Commercial | $112 | $1,341 |
| NEXT | $115 | $1,378 |
| Coverdash | $115 | $1,382 |
| Thimble | $119 | $1,430 |
| Hiscox | $127 | $1,521 |
| biBERK | $127 | $1,522 |
| Chubb | $132 | $1,589 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest Professional Liability Insurance Companies in California
The Hartford offers the lowest professional liability insurance (E&O) rates at $80 monthly ($955 annually). NEXT provides another budget-friendly option for California businesses.
| The Hartford | $80 | $955 |
| NEXT | $81 | $969 |
| Progressive Commercial | $84 | $1,009 |
| Thimble | $84 | $1,013 |
| Simply Business | $85 | $1,026 |
| Hiscox | $85 | $1,026 |
| Coverdash | $87 | $1,043 |
| biBERK | $89 | $1,063 |
| Nationwide | $91 | $1,095 |
| Chubb | $99 | $1,186 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability/errors and omissions policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest Workers’ Comp Insurance Companies in California
NEXT offers California's cheapest workers' comp rates at $76 monthly ($915 annually). The Hartford and Thimble provide similarly competitive rates, making all three solid choices for affordable business coverage in the state.
| NEXT | $76 | $915 |
| The Hartford | $77 | $928 |
| Thimble | $78 | $939 |
| Hiscox | $80 | $955 |
| Simply Business | $80 | $956 |
| Progressive Commercial | $80 | $956 |
| Coverdash | $81 | $972 |
| biBERK | $83 | $1,000 |
| Nationwide | $90 | $1,081 |
| Chubb | $94 | $1,133 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest BOP Insurance Companies in California
The Hartford offers the cheapest BOP rates in California at $126 per month ($1,512 annually). Business owners can also find affordable coverage through Thimble, Simply Business and Nationwide.
| The Hartford | $126 | $1,512 |
| Thimble | $135 | $1,620 |
| Simply Business | $160 | $1,916 |
| Nationwide | $163 | $1,953 |
| biBERK | $163 | $1,961 |
| Progressive Commercial | $167 | $2,001 |
| Coverdash | $167 | $2,006 |
| NEXT | $172 | $2,069 |
| Hiscox | $187 | $2,241 |
| Chubb | $199 | $2,386 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP policies. Survey results reflect limited sample data and may not represent all available rates in your area.
How Much Does Business Insurance Cost in California?
Business insurance in California ranges from $82 to $164 monthly, with workers compensation being the most affordable and business owner's policies the most expensive. Rates vary based on the coverage type your business needs.
| BOP | $164 |
| General Liability | $115 |
| Professional Liability (E&O) | $87 |
| Workers Comp | $82 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Cost of Business Insurance by Industry and Coverage
Business insurance costs in California vary significantly by industry and coverage type. Our analysis shows speech therapists pay just $7 monthly for workers' compensation, while pressure washing businesses pay $1,476 monthly for a business owner's policy.
Data filtered by:Results filtered by:
Select
Coverage Type:Business Owners Policy
Select
Industry:Accountants
| Accountants | Business Owners Policy | $36 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
What Factors Influence My Costs?
Your California business insurance premiums are influenced by several key factors. Here are the main elements that affect your coverage costs:
Industry Risk Level
Your business type determines insurance costs more than any other factor. Construction companies face much higher rates than consultants because their work sites have more accident risks. A construction firm pay $400 monthly for coverage, while a consulting business pays under $50.
Geographic Location and Weather Risks
Location strongly influences California business insurance rates. According to NOAA data, California leads the nation with 153 billion-dollar weather disasters since 1980. Businesses in wildfire zones or earthquake-prone areas pay more, while inland areas away from fault lines often see lower rates.
Business Size
Your workforce size directly affects insurance costs. Workers' compensation rates in California run $1 to $3 per $100 of payroll, while general liability costs increase with higher revenue and customer traffic. A retail store with 20 employees pays substantially more than a solo consultant working from home.
Claims History
Previous claims increase your rates for three to five years in California. Even a single liability claim can raise premiums across multiple coverage types. Insurers offer better rates to businesses with claim-free records and consistent risk management.
Coverage Types and Limits
Your premium reflects both coverage type and limit choices. Higher liability limits increase costs, but bundling coverage through a business owner's policy often saves money. California requires certain minimum coverages, but many businesses choose higher limits for better protection.
Years in Business
New California businesses pay higher premiums because insurers lack data to assess their risk level. After operating claim-free for three to five years, many businesses qualify for lower rates as they build a positive track record.
Professional Certifications
Safety certifications and professional licenses can reduce your insurance costs. California insurers often offer discounts for OSHA safety training, industry certifications, and risk management programs that demonstrate your commitment to preventing accidents.
California Business Insurance Buying Guide
Running a business takes focus; figuring out insurance shouldn't slow you down. Getting business insurance in California is straightforward when you know the steps. Our guide explains what the state's business owners need to protect their companies.
What Coverage Is Required?
We've researched all California business insurance requirements so you don't have to. Find a complete breakdown of state insurance rules in the section below.
Workers' Comp
Required for any business with one employee or more, including part-time workers, family members, and seasonal help. Certain contractors must carry coverage even without employees. California is one of the strictest states for workers' comp, there's no small business exemption. Even sole proprietor roofers, tree service professionals, and HVAC contractors need coverage. Penalties are severe: criminal misdemeanor charges, fines up to $100,000, up to one year in jail, and business shutdown orders. The state can also double your premium costs as a penalty. Average cost is $62 per month.
Commercial Auto Insurance
All business vehicles must carry minimum liability coverage of 30/60/15 as of January 2025. California doubled these requirements from the previous 15/30/5 limits that hadn't changed since 1967. This means $30,000 for bodily injury per person, $60,000 for bodily injury per accident, plus $15,000 for property damage. Another increase is coming in 2035 to 50/100/25, the highest in the nation. Commercial trucking requires much higher limits: $750,000 to $5 million, depending on cargo type. Personal auto policies exclude business use, requiring separate commercial coverage.
Contractor Bonds
All licensed contractors must carry $25,000 contractor license bonds. LLCs need an additional $100,000 employee/worker bond. These amounts increased from previous levels in 2023. California's contractor bonding system is complex and expensive. The $25,000 license bond protects consumers, while the $100,000 LLC bond (required only in California) protects employees. Qualifying individuals need separate $25,000 bonds. Contractors with disciplinary actions face additional bond requirements ranging from $25,000 to $250,000. Bond costs vary by credit score but typically start around $108 annually.
Specialized Contractor Requirements
Certain contractor classifications must carry workers' compensation even without employees, and all contractors need specific bonds regardless of business structure. Roofing (C-39), concrete (C-8), HVAC (C-20), asbestos abatement (C-22), and tree service (C-61/D-49) contractors cannot file exemptions from workers' comp coverage. This is unique to California. The state uses undercover sting operations to catch non-compliant contractors, with penalties including license revocation.
Data Breach and Cyber Requirements
California's strict data privacy laws create de facto insurance requirements for businesses handling personal information, especially after the California Consumer Privacy Act (CCPA). While not technically mandated, cyber liability insurance has become essential for California businesses due to the state's aggressive data breach notification laws and CCPA compliance requirements. Penalties can reach millions of dollars for data breaches, making coverage practically necessary. Most commercial leases now require cyber coverage alongside general liability.
What Coverage Do We Recommend?
California keeps business insurance requirements minimal, leaving you to make smart coverage choices. Our analysis shows the best insurance options for the state's leading industries:
Tech/IT | Professional liability (E&O), cyber liability, general liability, commercial property, intellectual property insurance, directors & officers (D&O), earthquake coverage, wildfire business interruption | Silicon Valley tech companies face massive cyber attack exposure, intellectual property disputes and earthquake risks to data centers. Power shutoffs during wildfire season can disrupt operations and cause data loss for cloud services. |
Cannabis | General liability, product liability, commercial property, crop insurance, cyber liability, employment practices liability, commercial auto, wildfire coverage, theft protection | California cannabis operations face product contamination lawsuits, high-value inventory theft, and wildfire destruction of cultivation facilities. Banking restrictions create cash handling risks, while evolving regulations increase compliance liability. |
Photography | General liability, professional liability, equipment coverage, commercial auto, workers' compensation, completion bonds, errors & omissions, wildfire evacuation coverage | California photographers face equipment theft, location damage claims and wildfire evacuation costs. Celebrity photo shoots and copyright disputes can result in substantial lawsuits, while production delays from natural disasters impact completion schedules. |
Manufacturing | General liability, product liability, workers' compensation, commercial property, earthquake coverage, supply chain interruption, environmental liability, cyber liability | California manufacturers face earthquake damage to precision equipment, supply chain disruptions from Pacific Rim events and strict environmental regulations. Aerospace components require specialized product liability coverage for safety-critical applications. |
Retail | General liability, commercial property, cyber liability, product liability, business interruption, earthquake coverage, commercial crime, employment practices liability | California retailers face high theft rates in urban areas, earthquake damage to inventory and cyber attacks on payment systems. Rolling blackouts during fire season can disrupt operations and spoil temperature-sensitive products. |
Construction/Contractor | General liability, workers' compensation, commercial auto, equipment coverage, builder's risk, earthquake coverage, wildfire evacuation coverage, professional liability, surety bonds | California construction faces earthquake building code requirements, wildfire evacuation mandates and strict labor regulations. Seismic retrofitting projects have specialized liability exposure, while coastal projects face sea level rise considerations. |
Startup | Professional liability (E&O), cyber liability, general liability, commercial property, intellectual property insurance, directors & officers (D&O), earthquake coverage, employment practices liability | California startups face intellectual property theft, cyber attacks and investor disputes. Earthquake damage to offices and equipment can disrupt critical development phases, while employment lawsuits are common in competitive tech hiring markets. |
How to Get the Best Cheap Business Insurance in California
Getting the right business insurance in California can strain your budget and time. These practical steps will help you find reliable coverage that protects your company without breaking the bank:
- 1
Assess Your Actual Risks First
Start by evaluating real risks specific to your California business operations. A San Francisco tech startup needs robust cyber liability coverage, while a Los Angeles food truck prioritizes general liability and equipment coverage.
- 2
Get Quotes from Multiple Insurers
Insurance costs vary between providers in California's competitive market. Contact at least three insurers to compare rates, as prices can differ by thousands of dollars for identical coverage levels.
- 3
Choose Providers Based on Service Quality
Research each insurer's financial strength and reputation for handling claims in California. A Sacramento contractor needs an insurer with construction expertise, while a San Diego restaurant wants quick response times for property damage claims.
- 4
Maximize Available Discounts
Look for opportunities to bundle policies and implement safety programs. A retail store can save by combining general liability with property insurance and maintaining a clean claims record.
- 5
Review Coverage Annually
Reassess your insurance needs as your California business evolves. A growing Oakland manufacturing company might find better rates by adjusting coverage limits and types based on expanded operations.
California Business Insurance: Bottom Line
Based on our analysis, NEXT, The Hartford and Simply Business are California's best business insurance providers. However, what's ideal for you depends on your business risks and employee needs. Research each company's service quality, maximize discounts and select coverage that fits your budget.
Small Business Insurance in California: FAQ
Small business owners in California face complex decisions when choosing insurance coverage. Our expert analysis answers the most common questions about protecting your business.
What business insurance is required by law in California?
Workers' compensation insurance is mandatory in California if you have employees. Commercial auto requires minimum coverage of $30,000/$60,000/$15,000. Licensed contractors must carry surety bonds, while general liability remains optional but commonly required.
How much does business insurance cost in California?
Business insurance in California ranges from $82 to $164 monthly, depending on coverage. Workers' compensation costs $82 monthly, while Business Owner's Policies run $164. Actual costs depend on your industry, business size and claims history.
Which company has the cheapest business insurance in California?
The Hartford offers the lowest rates at $94 monthly in California, with Thimble ($104) and Simply Business ($108) following behind. Compare multiple quotes as rates depend on business-specific factors.
What business insurance do I need for my small business in California?
Begin with general liability insurance to protect against customer injuries and property damage. Add workers' compensation if you employ staff and commercial auto for company vehicles. Tech companies need cyber liability, while contractors require equipment coverage and bonding.
What is the best business insurance company in California?
NEXT leads California's business insurance market with a MoneyGeek score of 4.63 out of 5. The Hartford and Simply Business are also excellent choices. Compare multiple providers to find coverage that matches your business requirements.
Do small businesses in California need workers' compensation insurance?
Yes, California law requires all businesses with employees to carry workers' compensation insurance. Even businesses with just one employee must have this coverage to protect against workplace injuries.
What factors affect business insurance costs in California?
Your industry type significantly impacts costs. Construction businesses pay higher premiums than retail stores. Location affects rates, with urban areas costing more than rural ones. Employee count drives workers' compensation costs, while claim history influences future rates.
How do I get cheap business insurance in California?
Compare quotes from multiple insurers like NEXT and The Hartford, assess your specific business risks, and bundle policies for discounts. Focus on both price and service quality when choosing coverage.
What's the difference between general liability and errors and omissions (professional liability) insurance in California?
General liability insurance protects against physical accidents and property damage. Professional liability (E&O) covers service-related mistakes like missed deadlines or incorrect advice. Service businesses typically need both coverages.
Can I get business insurance quotes online in California?
Yes, leading insurers provide online quotes for California businesses. Simple operations can get instant quotes, while complex businesses may need an agent for specialized coverage options.
How We Scored the Best Business Insurance Companies in California
Small business owners in California need reliable coverage that protects their operations without breaking their budgets. We designed our methodology to help California entrepreneurs navigate challenges and the state's mandatory workers' compensation requirements.
We studied thousands of quotes from 79 industries across four coverage types for a two-employee firm with $300,000 annual revenue and $150,000 payroll. All policies included $1 million per occurrence and $2 million total per year, with BOPs adding $5,000 business property coverage.
- Affordability (50% of score): We analyzed premium costs across multiple carriers, coverage types and policy limits to find the most budget-friendly options that maintain adequate protection.
- Customer experience (30% of score): Our evaluation examined claims processing speed, customer service quality and policyholder feedback to assess insurer reliability.
- Coverage options (15% of score): We reviewed available endorsements, industry-specific coverage, and the flexibility of policy customization to meet diverse business needs.
- Financial strength (5% of score): We verified each insurer's financial stability through independent ratings agencies to ensure long-term claims-paying ability.
This approach helps California small business owners compare insurers on what matters most: affordable premiums, reliable service, adequate coverage and financial stability.
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.
sources
- National Centers for Environment Information. "Billion-Dollar Weather and Climate Disasters." Accessed August 28, 2025.
- PR Newswire. "NEXT Insurance Empowers Agents with Enhanced Products, Cutting-Edge Digital Tools, Opening New Revenue Opportunities and Sparking Momentum in Small Business Insurance." Accessed August 25, 2025.
- Trustpilot. "NEXT." Accessed August 25, 2025.
- Trustpilot. "Simply Business US." Accessed August 25, 2025.
- Trustpilot. "The Hartford." Accessed August 25, 2025.