Most small businesses and contractors start with General Liability and Errors & Omissions, then add a Business Owner's Policy, commercial auto, and workers' compensation as they grow. Here's how each one works and who needs it.
General Liability (GL) is the foundation of commercial insurance. It protects your business if someone is injured, their property is damaged, or your advertising causes harm as a result of your operations. Many clients, landlords, and permits require proof of GL before you can even start work.
Contractors, tradespeople, retailers, consultants, and virtually any business that interacts with clients, the public, or other businesses' property.
Consultants, designers, agents, contractors providing professional advice or specifications, and any business whose mistakes could cost a client money.
E&O — also called Professional Liability — covers claims that your work, advice, or services caused a client a financial loss, even if no one was physically hurt. If your business gives advice, designs plans, or performs specialized work, this fills a gap General Liability doesn't cover.
A BOP bundles General Liability with commercial property coverage — protecting your building, equipment, inventory, and tools — typically at a lower combined cost than buying each policy separately. It's a popular next step once a business has a physical location, equipment, or inventory to protect.
Businesses with a storefront, office, shop, equipment, or inventory — retailers, offices, restaurants, and growing contracting operations.
Any business that owns, leases, or has employees drive vehicles for work — service vans, box trucks, work pickups, or fleets of any size.
If a vehicle is used for business — hauling equipment, making deliveries, or driving between job sites — a personal auto policy typically won't cover it. Commercial Auto protects your vehicles, drivers, and the business from liability if an accident happens on the job.
California law requires nearly every business with employees to carry workers' compensation coverage — even part-time or seasonal staff. It covers medical costs and lost wages if an employee is injured or becomes ill because of their job, and it protects your business from many employee lawsuits over workplace injuries.
Any California business with employees — including part-time or seasonal staff — is generally required to carry workers' compensation coverage.
Personal auto, homeowners, and personal umbrella coverage — ask us to bundle your business and personal policies.
See Personal Insurance