Know Business Insurance California Requirements For Free


Businesses need business insurance because it helps cover the costs of legal claims and property damage.
Without a business insurance, the businesses will have to pay out of pocket expenses in meeting costly damage legal claims against them. Let us see what are the types of business insurance needed for businesses in California.

Get Business Insurance:

Business insurance protects you from unexpected business losses in running a business. Accidents, natural disasters and lawsuits can ruin your business and force you to shut your doors sometimes. Therefore, it is essential to have the right business insurance coverage to protect your business. Business insurance California requirements are as given below.

Business Insurance California:

General Liability Insurance:

In general, this policy protects your business from another person's claims of bodily injury, associated medical costs and damage to property. Let us see some of the examples.

Bodily Injury: A client may fall and get injured in your premises due to poor maintenance of floors. General liability insurance will provide cover the medical expenses of the injured upto your policy limits.

Property Damage and Data Loss: You might have deputed one of your employees to attend to a work at a client's residence and the person might have damaged one of the properties of your client accidentally. However you are responsible for the damage claims by the client and the insurance will take care of such claims. Personal Injury: suppose one of your employees speak ill of a client and damage his or her reputation in public, then this is a worth case of slander. The affected party can sue you for personal injury or damage.
This general liability insurance will take care of such legal suits and pay for the claims on behalf of you.

Professional Liability Insurance:

This covers another person's claims against businesses that provide personal and professional services.

For example a business consultant advises a client to change some of the internal processes to increase productivity. If the client implements and the result is not fruitful, he or she may sue the professional adviser for damage. This insurance could pay for the defence costs up to the policy limits.

By wrongful advice and negligence, your client might have incurred a loss and he or she would surely seek legal remedy for losses and damages. A professional liability policy could appoint an attorney to fight the case against you.

Commercial Auto Insurance:

This helps your business cover the losses due to an auto accident when you are using vehicles for commercial purposes. Your driver may be at fault in making an accident. This policy will meet the medical expenses of the injured driver and will also take care of the repair charges of your vehicles. Sometimes, property damage can be caused by your commercial vehicle and this could also be covered by commercial auto insurance policy. These are the business insurance California requirements for auto.

Business Owners Policy for California:

Business owners policy is a combination of insurance policies that include general liability, property damage
liability, office insurance for fire and business interruption, electronic data loss insurance, crime insurance due to dishonesty of your employees and more.

Workers Compensation Insurance:

This is a mandated insurance that provides cover to ensure that the injured or sick employees are given proper medical care. This will also pay for the lost wages and death benefits.

Small Business Health Insurance:

Affordable Care Act does not require small businesses with less than 50 full time employees to offer small business health insurance requirements California for their employees. But keeping in mind the welfare of their employees, most of the businesses offer small business health insurance benefits to their staff. It is also a trick to retain the employees or otherwise they may go to other establishments, where these benefits are offered.


Maintaining a business is not an easy task. Business owners have to fight with many risks and look for the welfare of their employees in this competitive world. Business insurance is the only way to protect their businesses from all possible risks.