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Best business insurance companies
How we chose the best business insurance for California
How much does California business insurance cost?
In the news: California responds to 2025 wildfires
Best business insurance companies
California Business Insurance: Best Companies, How Much It Costs
Updated May 6, 2026
Expert verified
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Virtually all California businesses are required to have workers’ comp insurance. You need to be prepared for earthquakes and wildfires too. Here’s what coverage you need, how much you can expect to pay and where to start your search.
Pros
- Fewer complaints than expected filed with state regulators about both liability and property insurance.
- You can add data breach, professional liability and business income for off-premises utility service coverage to The Hartford's business owner's policy.
- You can add an additional insured and request a certificate of insurance online.
Cons
- No coverage available in Alaska or Hawaii.
- Not all businesses can get a quote online.
The Hartford’s business owner’s policy offers lots of helpful endorsements, like data breach insurance and off-premises utility insurance. Many businesses can get a quote online. The Hartford also sells workers’ comp and employment practices liability insurance, which we recommend for all California businesses. This longstanding insurance company has solid ratings for financial strength and customer experiences.
The Hartford
Best for Business owner's policy
Best for Business owner's policy
Pros
- Fewer complaints than expected filed with state regulators about both liability and property insurance.
- You can add data breach, professional liability and business income for off-premises utility service coverage to The Hartford's business owner's policy.
- You can add an additional insured and request a certificate of insurance online.
Cons
- No coverage available in Alaska or Hawaii.
- Not all businesses can get a quote online.
The Hartford’s business owner’s policy offers lots of helpful endorsements, like data breach insurance and off-premises utility insurance. Many businesses can get a quote online. The Hartford also sells workers’ comp and employment practices liability insurance, which we recommend for all California businesses. This longstanding insurance company has solid ratings for financial strength and customer experiences.
Pros
- Offers many types of commercial insurance, including specialized coverage like key person insurance and surety bonds.
- You can access your certificate of insurance and track your claims through an online portal.
- Fewer complaints than expected about liability coverage and property coverage.
Cons
- You can’t get a quote or purchase a policy online.
Travelers has a reputation for extensive coverage options, especially for companies in technical industries that have specialized property insurance needs. Small businesses can add commercial property coverage for property in transit, fire department service charges, outdoor property and pollutant cleanup and removal, among many others. You’ll have to work with an independent agent to get a quote from Travelers.
Travelers
Best for Extensive coverage options
Best for Extensive coverage options
Pros
- Offers many types of commercial insurance, including specialized coverage like key person insurance and surety bonds.
- You can access your certificate of insurance and track your claims through an online portal.
- Fewer complaints than expected about liability coverage and property coverage.
Cons
- You can’t get a quote or purchase a policy online.
Travelers has a reputation for extensive coverage options, especially for companies in technical industries that have specialized property insurance needs. Small businesses can add commercial property coverage for property in transit, fire department service charges, outdoor property and pollutant cleanup and removal, among many others. You’ll have to work with an independent agent to get a quote from Travelers.
All businesses Ergo Next serves can buy a policy online, and once you’re insured, you can generate a digital Certificate of Insurance whenever you need it. It’s a good choice if you need coverage right away, like to comply with a contract. Ergo Next sells business owner’s policies, workers’ comp and employment practices liability insurance.
Ergo Next
Best for Getting coverage online
Best for Getting coverage online
All businesses Ergo Next serves can buy a policy online, and once you’re insured, you can generate a digital Certificate of Insurance whenever you need it. It’s a good choice if you need coverage right away, like to comply with a contract. Ergo Next sells business owner’s policies, workers’ comp and employment practices liability insurance.
Pros
- Can get a quote and purchase some policies online.
- Discounts of up to 5% available when you buy two or more Hiscox products, plus a 14-day money-back refund policy.
- Professional liability policies cover work done anywhere in the world.
Cons
- Far more complaints than expected filed with state regulators about both liability and property coverage.
- No coverage available in Alaska; business owner's policies are unavailable in several states.
Hiscox specializes in insurance policies for technology businesses, consultants and white-collar professionals, especially those who need professional liability insurance. Hiscox also offers several packages for technology companies. These can include IP and copyright protections, coverage for defending your company against privacy claims and claims arising from social media content. Many California business owners can buy coverage online.
Hiscox
Best for Technology and professional services
Best for Technology and professional services
Pros
- Can get a quote and purchase some policies online.
- Discounts of up to 5% available when you buy two or more Hiscox products, plus a 14-day money-back refund policy.
- Professional liability policies cover work done anywhere in the world.
Cons
- Far more complaints than expected filed with state regulators about both liability and property coverage.
- No coverage available in Alaska; business owner's policies are unavailable in several states.
Hiscox specializes in insurance policies for technology businesses, consultants and white-collar professionals, especially those who need professional liability insurance. Hiscox also offers several packages for technology companies. These can include IP and copyright protections, coverage for defending your company against privacy claims and claims arising from social media content. Many California business owners can buy coverage online.
How we chose the best business insurance for California
NerdWallet’s editorial team chooses the best business insurance based on multiple factors. To inform our picks for California, we focused on:
- Financial strength. We use ratings from AM Best, the leading credit rating agency for the insurance industry, to measure each company’s financial stability. As insurers consider reducing their exposure in California, we chose only those with “excellent” or “superior” ratings. That suggests these companies have the ability to pay out many claims at once.
- Customer complaints. The National Association of Insurance Commissioners (NAIC) aggregates complaints that policyholders make to their state insurance departments. We analyze these data to determine commercial liability and commercial property lines of business. If a company has fewer complaints than we’d expect given their market share, it earns a higher rating.
- Patterns from California data. Using a proprietary dataset from Coverdash, an online insurance broker, we analyzed what types of businesses each insurer tends to underwrite. This informs which insurers we recommend for which industries and business sizes.
- Shopping experience. Insurers should make it easy to get a quote and buy a policy. For some, that means buying online fast. For others, it’s getting personalized advice from an insurance agent. We look at quote processes and consider whether an insurer sells policies online, through independent agents or both.
- Customer service and claims. We look for companies that clearly explain how to file and track a claim, download your certificate of insurance and reach customer support. We consider third-party customer satisfaction ratings from J.D. Power and Trustpilot to help with these evaluations.
How much does California business insurance cost?
California businesses with less than $1 million in annual revenue pay median premiums of:
- $380 per year for general liability insurance.
- $895 for a business owner’s policy.
- $1,410 for workers’ comp.
- $1,222 for professional liability insurance.
NerdWallet calculated these costs from data provided by Coverdash, an online insurance broker, about policies purchased between October 2025 and April 2026. This dataset was shared exclusively with NerdWallet in April 2026.
Business insurance costs vary widely depending on how big your company is and what industry you operate in. For instance, a general liability insurance policy for an actor in our dataset cost $278 per year. A general liability insurance for a mobile beverage stand cost $852. The mobile beverage stand probably has lots more customer interactions, which creates lots more opportunity for legal claims.
Real business insurance costs in California
Businesses bought these insurance policies via Coverdash in the last seven months, as of this writing in May 2026.
📑 $862 for general liability insurance
- Apartment managers office
- 2-3 employees
- $100,000-$500,000 in annual revenue
📑 $629 for a business owner’s policy
- Acupuncturist’s office
- 2-3 employees
- Under $100,000 in annual revenue
📑 $1,045 for professional liability insurance
- Customer service management consulting service
- 4-10 employees
- $100,000-$500,000 in annual revenue
📑 $2,040 for workers’ comp
- Arborist service
- 2-3 employees
- $100,000-$500,000 in annual revenue
Workers’ comp in California
California has some of the strictest workers’ comp laws in the nation. You need coverage if you have even one employee. That includes part-time employees and family members, who are often exempt in other states.
The only exceptions to workers’ comp in California are:
- A sole proprietor doesn’t have to have workers comp for themselves, but you can buy it if you want it.
- Officers, directors, general partners and LLC managing members can file a written waiver to be excluded from coverage.
California also has strict laws codifying who counts as an independent contractor and who should be an employee. Its law says a contractor must:
- Do work outside the company’s normal business.
- Be free to work how and when they please.
- Normally do that kind of work.
If a worker doesn’t meet all these criteria, they should be an employee. These rules apply even if you hire someone as a 1099 contractor and they sign a contract agreeing to that classification.
If you don’t have the workers’ comp coverage you need — including if you’ve misclassified a worker — you could be charged with a misdemeanor and fined $10,000 or more per employee.
You can buy workers’ comp from the California state fund or a private insurance company. Here are our top workers’ comp companies.
Commercial auto insurance in California
California requires all vehicles, including commercial ones, to carry minimum levels of insurance. You’ll need:
- $30,000 in bodily injury coverage per person.
- $60,000 in bodily injury liability coverage per accident.
- $15,000 in property damage liability.
Larger trucks — any vehicle that weighs more than 10,000 pounds or moves freight for a company — need more commercial auto insurance coverage. Depending on what you’re moving, overall limits can range from $300,000 to $5 million.
Fleets with at least 25 vehicles can apply for a certificate of self-insurance. This verifies that the company has enough cash on hand to cover a large settlement if necessary.
Employment practices liability insurance in California
In 2024, California’s governor signed the Private Attorneys General Act (PAGA). This law allows employees or groups to file civil lawsuits against their employers. These claims usually allege labor code violations, like unpaid wages, rest break violations or inadequate documentation.
In most other states, only regulators or government lawyers can bring these kinds of actions. That means California businesses are at much higher risk of lawsuits from employees.
This makes employment practices liability insurance a must for California employers. Otherwise, you’ll have to cover a claim like this out of pocket.
Cyber insurance for California businesses
The California Consumer Privacy Act (CCPA) officially took effect at the start of 2026. This law requires large businesses that handle sensitive customer data to do an annual audit of their security practices. It may also create stricter controls on minors’ data.
Most businesses probably don’t need to do audits. They’re required if:
- Your business earns more than half of its revenue from selling consumer information.
- Your business earned more than $26 million in annual revenue and you handle any personal information for 250,000 or more people or households.
- Your business earned more than $26 million in annual revenue and you handle sensitive information for more than 50,000 people.
But this change may make lawsuits related to data privacy more common. Every business should be prepared. Cyber insurance is a great first step.
Property insurance in California
California businesses need to prepare for wildfires and earthquakes.
Business property insurance usually doesn’t cover damage caused by earthquakes. You can buy earthquake insurance separately if you want it. If you aren’t located close to a fault line, then self-insuring might be sufficient.
Historically, property insurance has covered damage caused by wildfires. But as these disasters become more common and destructive, companies are getting more cautious. In 2024, for example, State Farm declined to renew coverage for tens of thousands of California homeowners due to wildfire risks.
If you operate in a high-risk fire area and can’t get coverage, the California FAIR Plan is the “insurer of last resort.” However, this coverage may be lacking — the state’s Department of Insurance has itself called it “limited coverage at a higher cost.”
The FAIR Plan is still better than nothing. But if you’re considering a property where it’s your only option, it may be worth seeking out a location with less fire risk.
In the news: California responds to 2025 wildfires
In January 2025, Southern California wildfires killed at least 30 people and damaged tens of billions of dollars worth of property. It cost insurers $40 billion, according to Munich Re.
To prevent insurers from pulling out of the California market, state legislators passed a law preventing non-renewals of residential and commercial property insurance policies for a year.
Separately, insurers in California can now use forward-looking models to set their rates. In the past, they were only allowed to use historical data. That meant they were almost always under-charging, since future disasters are usually more expensive than past ones. Now, they can use predictive models as long as they promise to keep writing policies in fire-prone areas.
After that change, Travelers announced it would start underwriting California homeowners policies again. Farmers Insurance also said it would stop capping how many new homeowners policies it could support in California each month.
Business property insurance gets fewer headlines than homeowners insurance. But usually these markets move in the same direction. More flexibility when it comes to homeowners insurance should mean more options for commercial property insurance too.
Methodology
Business insurance ratings methodology
NerdWallet rewards business insurance companies for reliability and good service. We calculate star ratings based on scores in about a dozen categories. These include:
- Each company's financial strength.
- How many complaints customers made relative to its market share.
- How easy it is to get coverage.
- How accessible customer service is.
Learn more about how we rate small-business insurance companies.
Our editorial team routinely fact-checks and updates these data points. We also adjust our scoring on an ongoing basis. This helps our star ratings reflect changing industry norms. For instance, in 2026, we began evaluating how easy insurers make it to add an additional insured.
Our ratings are a guide. But insurance policy details and prices can vary widely. We encourage you to shop around and compare several insurance quotes.NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
Insurer complaints methodology
One key factor in our star ratings is how many complaints insurance companies get. Here's how we arrive at that score.
Disappointed customers can file a complaint with their state's insurance department. The National Association of Insurance Commissioners (NAIC) collects, analyzes and groups complaints by business line and insurance company every year. A business line is a specific type of coverage, like workers’ comp.
Then, the NAIC calculates a complaint ratio for each company. It divides the company's share of complaints by its share of total premiums for each line of business. It then adds these ratio values to their official complaint index.
- A complaint ratio of 1 means a company received about the expected number of complaints relative to its size.
- A ratio of 2 means it received twice as many complaints as expected.
- A ratio of 0 means it received half as many complaints as expected.
NerdWallet obtains the raw NAIC data every year. We aggregate results at the company level and fact-check these results. Then we calculate a three-year average of each insurer's complaint ratio and convert it to a score for our star ratings.
Business insurance star ratings consider complaints about two lines of business: commercial liability and commercial property. We analyze complaint data on commercial auto and workers' comp policies too. But we don't currently incorporate these into our ratings since they're less universal.